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).

MWE 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 Marlborough Wine Estates Group Limited (MWE), the free cash flow value is 320591.

All amounts in NZD

Operating Cash
390.28k
Capital Expenditure
-69.69k
Free Cash Flow
320591

Marlborough Wine Estates Group 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).

MWE Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Marlborough Wine Estates Group Limited (NZX:MWE).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-615.59k9.96k-365.8k-1.71M
Depreciation692.78k562.17k417.7k583.79k
Change To Netincome-155.87k7.64k-45.67k1.19M
Change To Account Receivables775.2k-158.91k-289.3k931.96k
Change To Liabilities12.36k648.78k71.71k44.24k
Change To Inventory-101.09k-1.14M-1.22k-318.64k
Change To Operating Activities-220.45k95.61k174.93k18.74k
Total Cash From Operating Activities390.28k34.14k-37.64k748.84k
Capital Expenditures-69.69k-254.92k-612.52k-437.6k
Total Cashflows From Investing Activities-52.34k-254.92k-616.82k-436.43k
Net Borrowings-104.65k184.13k262.03k-127.04k
Total Cash From Financing Activities1.14M184.13k262.03k-127.04k
Change In Cash1.47M-36.65k-392.61k185.43k
Issuance Of Stock1.24M1.24M1.24M1.24M