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
Capital Expenditure
Free Cash Flow

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 202230 Jun 202130 Jun 202030 Jun 2019
Net Income469M141M209M357M
Change To Netincome-226M-226M-33M-194M
Change To Account Receivables-141M-32M-15M-26M
Change To Liabilities11M42M-31M-17M
Change To Inventory-67M-2M1M4M
Total Cash From Operating Activities352M338M352M326M
Capital Expenditures-114M-254M-195M-93M
Other Cashflows From Investing Activities91M-70M21M-35M
Total Cashflows From Investing Activities-534M-296M-194M63M
Dividends Paid-232M-221M-214M-208M
Net Borrowings223M263M41M-127M
Total Cash From Financing Activities84M42M-173M-335M
Change In Cash-98M84M-15M89M
Issuance Of Stock93M93M93M93M