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 52.17M.

All amounts in NZD

Operating Cash
57.67M
Capital Expenditure
-5.5M
Free Cash Flow
52.17M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income22.71M7.7M131.12M17.96M
Depreciation25.13M25.51M7.67M6.92M
Change To Netincome-2.29M688k-136.5M8.74M
Change To Account Receivables-22.69M22.82M85.94M-45.08M
Change To Liabilities26.47M-22.22M-112.76M19.36M
Change To Inventory759k-915k176.57M-7.37M
Change To Operating Activities-1.48M389k-201.03M1.92M
Total Cash From Operating Activities57.67M31.45M-49M5.77M
Capital Expenditures-5.5M-5.42M-11.57M-15.18M
Investments136k136k395.16M-1.1M
Other Cashflows From Investing Activities-51k-51k-51k-51k
Total Cashflows From Investing Activities-3.43M-8.25M379.28M-20.85M
Dividends Paid-9.34M-12.56M-15.27M-28.57M
Net Borrowings-58.4M29.73M-114.25M42.5M
Total Cash From Financing Activities-67.74M-216.83M-130.71M16.61M
Change In Cash-13.5M-193.62M199.56M1.52M