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 12.27M.

All amounts in NZD

Operating Cash
31.47M
Capital Expenditure
-19.2M
Free Cash Flow
12.27M

New Zealand Oil & Gas 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).

## 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 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 17.16M -36.44M -1.38M -7.48M
Depreciation 14.03M 6.93M 11.68M 16.24M
Change To Netincome 1.18M 38.18M 2.6M 12.44M
Change To Account Receivables -5.22M -2.26M 1.14M 3.78M
Change To Liabilities 3.97M 1.2M -508k -2.46M
Change To Inventory -405k -348k 207k -314k
Change To Operating Activities 51k -1.31M -855k 82k
Total Cash From Operating Activities 31.47M 6.04M 10.91M 21.3M
Capital Expenditures -19.2M -38.72M -8.35M -13.94M
Investments -446k -446k -446k -446k
Total Cashflows From Investing Activities -63.58M -38.72M -8.35M -13.94M
Net Borrowings -231k -273k -242k -242k
Total Cash From Financing Activities 24.75M -273k -249k -11k
Effect Of Exchange Rate 1.18M -7.04M 2.86M 224k
Change In Cash -6.17M -39.99M 5.17M 7.58M
Issuance Of Stock 24.98M 24.98M 24.98M 6k