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
23.66M
Capital Expenditure
-5.93M
Free Cash Flow
17.73M

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