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