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).

## MPG 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 Metro Performance Glass Limited (MPG), the free cash flow value is 2.85M.

All amounts in NZD

Operating Cash
13.25M
Capital Expenditure
-10.4M
Free Cash Flow
2.85M

Metro Performance Glass 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).

## MPG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Metro Performance Glass Limited (NZX:MPG).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -459k 8.11M -78.86M 5.04M
Depreciation 18.14M 19.28M 20.41M 12.56M
Change To Netincome -1.68M -4.46M 86.78M 4.56M
Change To Account Receivables -420k 1.24M 4.55M 481k
Change To Liabilities 2.35M -2.69M 1.74M -612k
Change To Inventory -5.07M 2.07M 2.6M 504k
Change To Operating Activities -167k 6.59M -7.26M -365k
Total Cash From Operating Activities 13.25M 28.85M 31.57M 23.65M
Capital Expenditures -10.4M -5.79M -8.83M -7.09M
Total Cashflows From Investing Activities -10.13M -2.3M -9.47M -7.81M
Net Borrowings 2.51M -33.75M -12.93M -1.15M
Total Cash From Financing Activities 2.51M -33.75M -12.79M -6.81M
Effect Of Exchange Rate -104k -7k -65k -46k
Change In Cash 5.53M -7.21M 9.25M 8.98M