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).

## NWF 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 NZ Windfarms Limited (NWF), the free cash flow value is 3.92M.

All amounts in NZD

Operating Cash
5.91M
Capital Expenditure
-1.99M
Free Cash Flow
3.92M

NZ Windfarms 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).

## NWF Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for NZ Windfarms Limited (NZX:NWF).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 5.17M 311.68k 1.73M 627.47k
Depreciation 3.33M 3.06M 2.73M 2.67M
Change To Netincome -2.36M 1.57M 3.09M 638.63k
Change To Account Receivables -833.23k -674.88k -69.01k -373.5k
Change To Liabilities 613.72k 267.85k 337.75k -286.5k
Change To Inventory -12.58k 361.82k -185.89k 111.5k
Total Cash From Operating Activities 5.91M 4.9M 7.63M 3.38M
Capital Expenditures -1.99M -1.57M -1.05M -832.94k
Total Cashflows From Investing Activities -3.07M -1.57M -1.05M -832.94k
Dividends Paid -2.97M -3.6M -4.75M -1.09M
Net Borrowings -700.52k -958.46k -935.82k -946k
Total Cash From Financing Activities -3.67M -4.56M -5.69M -2.04M
Change In Cash -825.92k -1.23M 887.75k 511k