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).

MHJ 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 Michael Hill International Limited (MHJ), the free cash flow value is 95.96M.

All amounts in AUD

Operating Cash
Capital Expenditure
Free Cash Flow

Michael Hill International 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).

MHJ Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Michael Hill International Limited (NZX:MHJ).

26 Jun 2022 27 Jun 2021 28 Jun 2020 30 Jun 2019
Net Income 46.71M 41.02M 3.06M 16.5M
Depreciation 50.21M 47.1M 53.36M 16.93M
Change To Netincome -603k 9.01M 9.39M 2.82M
Change To Account Receivables 14.04M 13.16M 1.49M -8.42M
Change To Liabilities 9.96M 24.54M 9.56M -358k
Change To Inventory -10.81M 7.66M -206k 12.1M
Change To Operating Activities 344k -11.86M -3.71M 477k
Total Cash From Operating Activities 111.57M 134.5M 83.7M 38.97M
Capital Expenditures -15.61M -6.43M -6.11M -10.75M
Total Cashflows From Investing Activities -22.43M -10M -17.21M -15.7M
Dividends Paid -25.24M -11.64M -5.82M -19.36M
Net Borrowings -40.46M -51.68M -49.69M -3.2M
Total Cash From Financing Activities -65.7M -63.31M -55.51M -22.57M
Effect Of Exchange Rate 48k -26k -74k 1k
Change In Cash 23.48M 61.16M 3.28M 703k