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 84.00M.

All amounts in NZD

Operating Cash
338M
Capital Expenditure
-254M
Free Cash Flow
84.00M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income141M209M357M234M
Depreciation204M188M182M185M
Change To Account Receivables-32M-15M-26M12M
Change To Liabilities42M-31M-17M-7M
Change To Inventory-2M1M4M-1M
Total Cash From Operating Activities338M352M326M376M
Capital Expenditures-254M-195M-93M-94M
Investments41M4M-50M-138M
Other Cashflows From Investing Activities-70M21M-35M-35M
Total Cashflows From Investing Activities-296M-194M63M-260M
Dividends Paid-221M-214M-208M-204M
Net Borrowings263M41M-127M182M
Total Cash From Financing Activities42M-173M-335M-141M
Change In Cash84M-15M89M-25M