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).

PHL 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 Promisia Healthcare Limited (PHL), the free cash flow value is 3.27M.

All amounts in NZD

Operating Cash
3.75M
Capital Expenditure
-485k
Free Cash Flow
3.27M

Promisia Healthcare 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).

PHL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Promisia Healthcare Limited (NZX:PHL).

31 Mar 202231 Mar 202131 Dec 201931 Dec 2018
Net Income2.22M44.8k-2.4M-2.41M
Depreciation918k301.6k9k11k
Change To Netincome619k-1.22M-978k429k
Change To Liabilities1.58M294k-68k
Total Cash From Operating Activities3.75M452.8k-868k-1.8M
Capital Expenditures-485k-3.88M-3.88M-39k
Total Cashflows From Investing Activities-2.04M-21.15M73k-47k
Net Borrowings-734k14.72M57k-135k
Total Cash From Financing Activities-518k21.66M304k2.03M
Change In Cash1.19M958.4k-491k188k
Issuance Of Stock216k6.93M247k2.3M