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 4.99M.

All amounts in NZD

Operating Cash
5.93M
Capital Expenditure
-941k
Free Cash Flow
4.99M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income4.1M934k-1.03M-7.84M
Depreciation1.1M870k401k410k
Change To Netincome-1.76M-1.26M-387k3.72M
Change To Account Receivables-1.1M725k-1.05M995k
Change To Liabilities3.13M-530k6.68M2.02M
Change To Inventory631k97k-78k1.08M
Change To Operating Activities-160k1.62M370k-974k
Total Cash From Operating Activities5.93M2.46M4.9M-592k
Capital Expenditures-941k-180k-281k-138k
Other Cashflows From Investing Activities4.01M4.01M4.01M15k
Total Cashflows From Investing Activities2.93M-472k-1.03M-826k
Net Borrowings-4.2M-3.27M69k-1.4M
Total Cash From Financing Activities-4.2M-3.27M69k1.45M
Effect Of Exchange Rate1k-68k5k-69k
Change In Cash4.67M-1.35M3.95M-39k