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 3.33M.

All amounts in NZD

Operating Cash
4.9M
Capital Expenditure
-1.57M
Free Cash Flow
3.33M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income311.68k1.73M627.47k-14.75M
Depreciation3.06M2.73M2.67M2.5M
Change To Netincome1.57M3.09M638.63k15.33M
Change To Account Receivables-674.88k-69.01k-373.5k290k
Change To Liabilities267.85k337.75k-286.5k230k
Change To Inventory361.82k-185.89k111.5k70k
Total Cash From Operating Activities4.9M7.63M3.38M3.67M
Capital Expenditures-1.57M-1.05M-832.94k-8.76M
Total Cashflows From Investing Activities-1.57M-1.05M-832.94k-2.96M
Dividends Paid-3.6M-4.75M-1.09M-2.45M
Net Borrowings-958.46k-935.82k-946k2.79M
Total Cash From Financing Activities-4.56M-5.69M-2.04M340k
Change In Cash-1.23M887.75k511k1.05M