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
37.49M
Capital Expenditure
-10.69M
Free Cash Flow
26.80M

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