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).

PGW 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 PGG Wrightson Limited (PGW), the free cash flow value is 17.73M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

PGG Wrightson 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).

PGW Cash Flow Statement History

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

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 24.29M 22.71M 7.7M 131.12M
Depreciation 25.18M 25.13M 25.51M 7.67M
Change To Netincome -997k -2.29M 688k -136.5M
Change To Account Receivables -41.91M -22.69M 22.82M 85.94M
Change To Liabilities 26.8M 26.47M -22.22M -112.76M
Change To Inventory -20.77M 759k -915k 176.57M
Change To Operating Activities 3.78M -1.48M 389k -201.03M
Total Cash From Operating Activities 23.66M 57.67M 31.45M -49M
Capital Expenditures -5.93M -5.5M -5.42M -11.57M
Investments 7k 136k 136k 395.16M
Total Cashflows From Investing Activities -7.75M -3.43M -8.25M 379.28M
Dividends Paid -23.33M -9.34M -12.56M -15.27M
Net Borrowings 8.73M -58.4M 29.73M -114.25M
Total Cash From Financing Activities -14.6M -67.74M -216.83M -130.71M
Change In Cash 1.31M -13.5M -193.62M 199.56M