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).

MHM 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 MHM Automation Limited (MHM), the free cash flow value is 6.98M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

MHM Automation 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).

MHM Cash Flow Statement History

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

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 1.77M 4.1M 934k -1.03M
Depreciation 1.66M 1.1M 870k 401k
Change To Netincome 1.11M -1.76M -1.26M -387k
Change To Account Receivables -3.74M -1.1M 725k -1.05M
Change To Liabilities 8.61M 3.13M -530k 6.68M
Change To Inventory -277k 631k 97k -78k
Change To Operating Activities -289k -160k 1.62M 370k
Total Cash From Operating Activities 8.85M 5.93M 2.46M 4.9M
Capital Expenditures -1.87M -941k -180k -281k
Total Cashflows From Investing Activities -2M 2.93M -472k -1.03M
Net Borrowings -777k -4.2M -3.27M 69k
Total Cash From Financing Activities -1.76M -4.2M -3.27M 69k
Effect Of Exchange Rate -66k 1k -68k 5k
Change In Cash 5.02M 4.67M -1.35M 3.95M