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