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).

NZO 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 Oil & Gas Limited (NZO), the free cash flow value is -32.68M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

New Zealand Oil & Gas 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).

NZO Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for New Zealand Oil & Gas Limited (NZX:NZO).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income-36.44M-1.38M-7.48M762k
Change To Netincome38.18M2.6M12.44M1.6M
Change To Account Receivables-2.26M1.14M3.78M-4.71M
Change To Liabilities1.2M-508k-2.46M1.62M
Change To Inventory-348k207k-314k-314k
Change To Operating Activities-1.31M-855k82k82k
Total Cash From Operating Activities6.04M10.91M21.3M10.56M
Capital Expenditures-38.72M-8.35M-13.94M-9.15M
Total Cashflows From Investing Activities-38.72M-8.35M-13.94M-38.8M
Net Borrowings-273k-242k-242k-242k
Total Cash From Financing Activities-273k-249k-11k-3.52M
Effect Of Exchange Rate-7.04M2.86M224k4.66M
Change In Cash-39.99M5.17M7.58M-27.09M