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).

PFI 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 Property For Industry Limited (PFI), the free cash flow value is 56.13M.

All amounts in NZD

Operating Cash
56.12M
Capital Expenditure
-
Free Cash Flow
56.13M

Property For Industry 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).

PFI Cash Flow Statement History

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

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income452.81M113.45M176.29M110.09M
Depreciation181k173k124k55k
Change To Netincome-399.01M-65.54M-131.71M-65.13M
Change To Account Receivables-351k-3.07M-977k-689k
Change To Liabilities2.19M-236k587k583k
Total Cash From Operating Activities56.12M35.16M48.37M53.75M
Other Cashflows From Investing Activities900k5.24M1.12M1.12M
Total Cashflows From Investing Activities-140.61M-77.75M-25.6M-43.15M
Dividends Paid-27.07M-31.38M-37.65M-37.9M
Net Borrowings111.25M74.19M14.42M28.35M
Total Cash From Financing Activities84.17M42.81M-23.24M-9.55M
Change In Cash-311k229k-467k1.05M