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).

OCA 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 Oceania Healthcare Limited (OCA), the free cash flow value is -6.97M.

All amounts in NZD

Operating Cash
105.53M
Capital Expenditure
-112.5M
Free Cash Flow
-6.97M

Oceania Healthcare 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).

OCA Cash Flow Statement History

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

31 Mar 202231 Mar 202131 May 202031 May 2019
Net Income61.13M102.82M-13.64M45.37M
Depreciation18.18M16.03M14.44M9.44M
Change To Netincome14.43M-8.48M101.02M29.42M
Change To Account Receivables13.11M-2.73M-2.6M290k
Change To Liabilities-1.76M7.29M90k4.69M
Total Cash From Operating Activities105.53M115.14M99.37M89.32M
Capital Expenditures-112.5M-43.42M-40.47M-72.89M
Total Cashflows From Investing Activities-218.82M-122.63M-135.98M-153.77M
Dividends Paid-19.42M-7.56M-22.23M-28.41M
Net Borrowings44.22M-1.66M54.31M96.68M
Other Cashflows From Financing Activities-1.67M-4.56M-607k-645k
Total Cash From Financing Activities43.13M82.22M31.48M68.93M
Change In Cash-70.16M74.74M-5.14M4.47M
Issuance Of Stock20M96M96M1.3M