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 -18.27M.

All amounts in NZD

Operating Cash
-17.55M
Capital Expenditure
-713k
Free Cash Flow
-18.27M

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 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -19.79M -14.22M -18.89M -17.92M
Depreciation 1.39M 1.32M 1.35M 279k
Change To Netincome 1.15M 1.44M 784k 800k
Change To Account Receivables -1.77M -2.09M 539k -341k
Change To Liabilities 1.79M -71k 698k -353k
Change To Inventory -217k 6k 46k -90k
Change To Operating Activities -192k -1k 7k 4k
Total Cash From Operating Activities -17.55M -13.57M -15.38M -17.51M
Capital Expenditures -713k -270k -116k -50k
Investments -51M -5.97M -5.03M 3M
Total Cashflows From Investing Activities -52.13M -6.35M -5.21M 2.84M
Net Borrowings -1.15M -1.14M -1.21M -97k
Other Cashflows From Financing Activities -3.99M -145k -1.28M -178k
Total Cash From Financing Activities 100.66M 22.21M 17.64M 14.29M
Effect Of Exchange Rate 305k 81k -140k -26k
Change In Cash 31.28M 2.37M -3.09M -395k
Issuance Of Stock 105.79M 23.5M 20.14M 14.57M