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 137.02M.

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).

27 Jun 202128 Jun 202030 Jun 201930 Jun 2018
Net Income45.33M3.06M16.5M1.56M
Change To Netincome9.01M9.39M2.82M13.41M
Change To Account Receivables13.16M1.49M-8.42M-1.35M
Change To Liabilities25.95M9.56M-358k3.8M
Change To Inventory7.66M-206k12.1M12.17M
Change To Operating Activities-11.86M-3.71M477k1.48M
Total Cash From Operating Activities143.45M83.7M38.97M54.89M
Capital Expenditures-6.43M-6.11M-10.75M-17.89M
Total Cashflows From Investing Activities-18.95M-17.21M-15.7M-24.01M
Dividends Paid-11.64M-5.82M-19.36M-19.37M
Net Borrowings-51.68M-49.69M-3.2M-10M
Total Cash From Financing Activities-63.31M-55.51M-22.57M-29.37M
Effect Of Exchange Rate-25k-74k1k28k
Change In Cash61.16M3.28M703k1.54M