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).

NZM 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 NZME Limited (NZM), the free cash flow value is 26.80M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

NZME 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).

NZM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for NZME Limited (NZX:NZM).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 23.38M 34.65M 14.79M -164.66M
Depreciation 23.48M 22.82M 23.86M 24.63M
Change To Netincome -3.09M -11.43M 5.08M 176.27M
Change To Account Receivables -3.11M -503k 7.72M 4.03M
Change To Liabilities -3.39M 2.81M -1.74M 182k
Change To Inventory -3.73M -429k 464k -78k
Change To Operating Activities -198k 182k 503k -630k
Total Cash From Operating Activities 37.49M 51.84M 55.58M 46.97M
Capital Expenditures -10.69M -6.5M -5M -11.84M
Total Cashflows From Investing Activities -14.28M 12.85M -4.97M -11.72M
Dividends Paid -15.67M -5.93M -5.93M -5.93M
Net Borrowings 12.04M -56.78M -52.98M -32.51M
Other Cashflows From Financing Activities -166k -166k -490k -36k
Total Cash From Financing Activities -31.08M -62.71M -53.47M -32.55M
Change In Cash -7.87M 1.98M -2.86M 2.7M
Repurchase Of Stock -17.6M -17.6M -17.6M -17.6M