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 -921988.

All amounts in NZD

Operating Cash
-618.95k
Capital Expenditure
-303.03k
Free Cash Flow
-921988

Marlborough Wine Estates Group Limited has a negative 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 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 328.01k -615.59k 9.96k -365.8k
Depreciation 739.28k 692.78k 562.17k 417.7k
Change To Netincome 236.2k -155.87k 7.64k -45.67k
Change To Account Receivables -927.64k 775.2k -158.91k -289.3k
Change To Liabilities 347.23k 12.36k 648.78k 71.71k
Change To Inventory -1.46M -101.09k -1.14M -1.22k
Change To Operating Activities 117.1k -220.45k 95.61k 174.93k
Total Cash From Operating Activities -618.95k 390.28k 34.14k -37.64k
Capital Expenditures -303.03k -69.69k -254.92k -612.52k
Total Cashflows From Investing Activities -309.88k -52.34k -254.92k -616.82k
Net Borrowings -463.64k -104.65k 184.13k 262.03k
Total Cash From Financing Activities -463.64k 1.14M 184.13k 262.03k
Change In Cash -1.39M 1.47M -36.65k -392.61k