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).

## NZK 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 New Zealand King Salmon Investments Limited (NZK), the free cash flow value is -3.29M.

All amounts in NZD

Operating Cash
7.01M
Capital Expenditure
-10.29M
Free Cash Flow
-3.29M

New Zealand King Salmon Investments 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).

## NZK Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for New Zealand King Salmon Investments Limited (NZX:NZK).

31 Jan 202231 Jan 202130 Jun 202030 Jun 2019
Net Income-73.2M-12.14M18M11.35M
Depreciation9.62M9.74M9.04M6.12M
Change To Netincome55.09M4.08M2.44M-815k
Change To Account Receivables-3.63M-5.84M725k-1.08M
Change To Liabilities-2.46M6.76M2.44M-1.73M
Change To Inventory21.08M-4.61M-28.93M-3.03M
Total Cash From Operating Activities7.01M-1.51M4.07M10.94M
Capital Expenditures-10.29M-8.29M-16.15M-14.19M
Total Cashflows From Investing Activities-13.19M-9.76M-17.77M-16.89M
Net Borrowings5.67M5.65M21.3M4.87M
Total Cash From Financing Activities5.67M5.65M14.43M-2.25M
Effect Of Exchange Rate-55k-610.29k156k156k
Change In Cash-566k-6.23M884k-8.2M