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).

MEE 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 Me Today Limited (MEE), the free cash flow value is -9.89M.

All amounts in NZD

Operating Cash
-9.62M
Capital Expenditure
-270k
Free Cash Flow
-9.89M

Me Today Limited has a negative 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).

MEE Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Me Today Limited (NZX:MEE).

31 Mar 202231 Mar 202131 Mar 202031 Mar 2019
Net Income-17.8M-2.86M-4.98M-108k
Depreciation1.27M80k13k2.4k
Change To Netincome11.8M112k3.98M3.98M
Change To Account Receivables-2.15M-170k-227k-50.4k
Change To Liabilities1.97M99k516k33.6k
Change To Inventory-16.16M-593k-341k-341k
Change To Operating Activities11.46M11.46M-14k-14k
Total Cash From Operating Activities-9.62M-3.33M-1.06M-122.4k
Capital Expenditures-270k-98k-22k-26.4k
Investments3.8M-3.8M-3.8M-3.8M
Total Cashflows From Investing Activities-17.64M-3.92M1.49M-26.4k
Net Borrowings6.65M-33k-33k240k
Other Cashflows From Financing Activities-688k-187k-187k-187k
Total Cash From Financing Activities27.21M4.28M3.7M240k
Change In Cash-49k-2.97M4.13M91.2k
Repurchase Of Stock-2k-2k-2k-2k
Issuance Of Stock21.25M4.5M3.7M3.7M