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
111.57M
Capital Expenditure
-15.61M
Free Cash Flow
95.96M

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