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).

PEB 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 Pacific Edge Limited (PEB), the free cash flow value is -13.84M.

All amounts in NZD

Operating Cash
-13.57M
Capital Expenditure
-270k
Free Cash Flow
-13.84M

Pacific Edge 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).

PEB Cash Flow Statement History

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

31 Mar 202131 Mar 202031 Mar 201931 Mar 2018
Net Income-14.22M-18.89M-17.92M-19.64M
Depreciation1.32M1.35M279k358k
Change To Netincome1.44M784k800k1.16M
Change To Account Receivables-2.09M539k-341k-383k
Change To Liabilities-71k698k-353k192k
Change To Inventory6k46k-90k72k
Change To Operating Activities-1k7k4k4k
Total Cash From Operating Activities-13.57M-15.38M-17.51M-18.1M
Capital Expenditures-270k-116k-50k-195k
Investments-5.97M-5.03M3M-3M
Total Cashflows From Investing Activities-6.35M-5.21M2.84M-3.33M
Net Borrowings-1.25M-1.21M-97k-59k
Other Cashflows From Financing Activities-38k-1.28M-178k-1.3M
Total Cash From Financing Activities22.21M17.64M14.29M20.06M
Effect Of Exchange Rate81k-140k-26k56k
Change In Cash2.37M-3.09M-395k-1.32M
Issuance Of Stock23.5M20.14M14.57M21.41M