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).

MMH 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 Marsden Maritime Holdings Limited (MMH), the free cash flow value is 9.61M.

All amounts in NZD

Operating Cash
10.73M
Capital Expenditure
-1.12M
Free Cash Flow
9.61M

Marsden Maritime Holdings 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).

MMH Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Marsden Maritime Holdings Limited (NZX:MMH).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income14.26M6.68M9.69M9.4M
Depreciation530.22k447.82k409.45k299.49k
Change To Netincome-4.89M2.94M-251.12k28.3k
Change To Account Receivables31.12k270.68k239.33k-103.28k
Change To Liabilities1.66M-500.19k1.07M-448.2k
Change To Inventory-21.43k23.17k-53.54k-4.74k
Change To Operating Activities-838.53k752.68k-1.07M662.38k
Total Cash From Operating Activities10.73M10.61M10.04M9.83M
Capital Expenditures-1.12M-2.73M-1.93M-2.78M
Total Cashflows From Investing Activities-11.51M-8.57M-9.38M280.35k
Dividends Paid-6.61M-6.61M-6.5M-6.4M
Net Borrowings7.4M4.4M6.1M-3.8M
Total Cash From Financing Activities791.89k-2.21M-404.85k-10.2M
Change In Cash9.01k-161.82k261.41k-89.78k