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).

NZX 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 NZX Limited (NZX), the free cash flow value is 21.92M.

All amounts in NZD

Operating Cash
27.39M
Capital Expenditure
-5.47M
Free Cash Flow
21.92M

NZX 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).

NZX Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for NZX Limited (NZX:NZX).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income15.02M17.59M14.64M11.65M
Depreciation3.28M2.99M2.8M7.22M
Change To Netincome1.19M331k791k3.09M
Change To Account Receivables-430k-1.83M161k1.54M
Change To Liabilities1.55M6.3M989k-101k
Total Cash From Operating Activities27.39M31.23M24.79M24.93M
Capital Expenditures-5.47M-483k-708k-1.18M
Total Cashflows From Investing Activities-16.92M-9.97M-8.3M-14.64M
Dividends Paid-13.09M-14.76M-12.85M-17.51M
Net Borrowings-1.1M-1.47M-1.29M18.95M
Total Cash From Financing Activities-14.19M-16.23M-14.13M209k
Change In Cash-3.71M5.04M2.35M10.5M