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).

MEL 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 Meridian Energy Limited (MEL), the free cash flow value is 320.00M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

Meridian Energy 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).

MEL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Meridian Energy Limited (NZX:MEL).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 664M 428M 175M 339M
Depreciation 278M 285M 288M 250M
Change To Netincome -457M -243M 93M -39M
Change To Account Receivables 84M -169M -34M -32M
Change To Liabilities -124M 214M 75M 39M
Change To Operating Activities -1M -60M -15M 15M
Total Cash From Operating Activities 461M 431M 605M 635M
Capital Expenditures -141M -76M -43M -45M
Total Cashflows From Investing Activities 598M -114M -64M -69M
Dividends Paid -360M -433M -420M -437M
Net Borrowings -482M 91M 105M -46M
Total Cash From Financing Activities -844M -345M -443M -546M
Change In Cash 215M -28M 98M 18M
Repurchase Of Stock -2M -3M -2M -2M