Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a business. At the most fundamental level, a company’s ability to create value for shareholders is determined by its ability to generate positive cash flows, or more specifically, maximize long-term free cash flow (FCF).

## MCY Free Cash Flow Analysis

Free cash flow, a measure commonly used by analysts to assess a company's profitability, represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

The Free Cash Flow is calculated using a number of methods including using Operating Cash Flow. Following is the formula to calculate Free Cash Flow based on Operating Cash Flow.

`Free Cash Flow = Operating Cash Flow - Capital Expenditures`

Using above formula to calculate Free Cash Flow for Mercury NZ Limited (MCY), the free cash flow value is 238.00M.

All amounts in NZD

Operating Cash
352M
Capital Expenditure
-114M
Free Cash Flow
238.00M

Mercury NZ Limited has a positive free cash flow as per the latest annual Cash flow statement released by the company. Positive free cash flow is cruscial for the financial health of a company, which can be used to pay dividends, expand operations, and deleverage its balance sheet (i.e., reduce debt).

## MCY Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Mercury NZ Limited (NZX:MCY).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 469M 141M 209M 357M
Depreciation 273M 204M 188M 182M
Change To Netincome -226M -226M -33M -194M
Change To Account Receivables -141M -32M -15M -26M
Change To Liabilities 11M 42M -31M -17M
Change To Inventory -67M -2M 1M 4M
Total Cash From Operating Activities 352M 338M 352M 326M
Capital Expenditures -114M -254M -195M -93M
Investments 10M 61M 4M -50M
Other Cashflows From Investing Activities 91M -70M 21M -35M
Total Cashflows From Investing Activities -534M -296M -194M 63M
Dividends Paid -232M -221M -214M -208M
Net Borrowings 223M 263M 41M -127M
Total Cash From Financing Activities 84M 42M -173M -335M
Change In Cash -98M 84M -15M 89M
Issuance Of Stock 93M 93M 93M 93M