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).

## MFT 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 Mainfreight Limited (MFT), the free cash flow value is 327.89M.

All amounts in NZD

Operating Cash
503.8M
Capital Expenditure
-175.91M
Free Cash Flow
327.89M

Mainfreight 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).

## MFT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Mainfreight Limited (NZX:MFT).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 355.4M 188.11M 159.2M 137.62M
Depreciation 182.44M 165.73M 154.2M 39.08M
Change To Netincome 4.44M -4.11M -22.38M 367k
Change To Account Receivables -316.32M -68.41M -31.46M -27.64M
Change To Liabilities 206.56M 95.87M 36.3M 28.51M
Change To Operating Activities 42.24M -26M -8.18M 2.95M
Total Cash From Operating Activities 503.8M 376.28M 300.8M 197.42M
Capital Expenditures -175.91M -104.05M -143.29M -87.67M
Total Cashflows From Investing Activities -189.08M -118.55M -155.03M -89.17M
Dividends Paid -100.7M -64.45M -59.41M -48.34M
Net Borrowings -149.27M -163.14M -92.51M -26.43M
Total Cash From Financing Activities -249.97M -227.59M -151.92M -74.77M
Effect Of Exchange Rate -2.05M -6.72M 7.11M 1.22M
Change In Cash 62.7M 23.42M 954k 34.7M