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 202231 Mar 202131 Mar 202031 Mar 2019
Net Income355.4M188.11M159.2M137.62M
Depreciation182.44M165.73M154.2M39.08M
Change To Netincome4.44M-4.11M-22.38M367k
Change To Account Receivables-316.32M-68.41M-31.46M-27.64M
Change To Liabilities206.56M95.87M36.3M28.51M
Change To Operating Activities42.24M-26M-8.18M2.95M
Total Cash From Operating Activities503.8M376.28M300.8M197.42M
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-6.72M7.11M1.22M
Change In Cash62.7M23.42M954k34.7M