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
8.85M
Capital Expenditure
-1.87M
Free Cash Flow
6.98M

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