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 202230 Jun 202130 Jun 202030 Jun 2019
Net Income1.77M4.1M934k-1.03M
Depreciation1.66M1.1M870k401k
Change To Netincome1.11M-1.76M-1.26M-387k
Change To Account Receivables-3.74M-1.1M725k-1.05M
Change To Liabilities8.61M3.13M-530k6.68M
Change To Inventory-277k631k97k-78k
Change To Operating Activities-289k-160k1.62M370k
Total Cash From Operating Activities8.85M5.93M2.46M4.9M
Capital Expenditures-1.87M-941k-180k-281k
Total Cashflows From Investing Activities-2M2.93M-472k-1.03M
Net Borrowings-777k-4.2M-3.27M69k
Total Cash From Financing Activities-1.76M-4.2M-3.27M69k
Effect Of Exchange Rate-66k1k-68k5k
Change In Cash5.02M4.67M-1.35M3.95M