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 45.34M.

All amounts in NZD

Operating Cash
51.84M
Capital Expenditure
-6.5M
Free Cash Flow
45.34M

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 202131 Dec 202031 Dec 201931 Dec 2018
Net Income34.65M14.79M-164.66M11.73M
Depreciation22.82M23.86M24.63M17.62M
Change To Netincome-11.43M5.08M176.27M-6.44M
Change To Account Receivables-503k7.72M4.03M-2.8M
Change To Liabilities2.81M-1.74M182k-4.82M
Change To Inventory-429k464k-78k61k
Change To Operating Activities182k503k-630k-571k
Total Cash From Operating Activities51.84M55.58M46.97M21.84M
Capital Expenditures-6.5M-5M-11.84M-14.08M
Total Cashflows From Investing Activities12.85M-4.97M-11.72M-14.1M
Dividends Paid-5.93M-5.93M-5.93M-15.68M
Net Borrowings-56.78M-52.98M-32.51M10.5M
Total Cash From Financing Activities-62.71M-53.47M-32.55M-5.6M
Change In Cash1.98M-2.86M2.7M2.15M