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