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).

## POT 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 Port of Tauranga Limited (POT), the free cash flow value is 123.80M.

All amounts in NZD

Operating Cash
145.25M
Capital Expenditure
-21.45M
Free Cash Flow
123.80M

Port of Tauranga 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).

## POT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Port of Tauranga Limited (NZX:POT).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 111.32M 102.38M 88.68M 100.58M
Depreciation 36.09M 33.45M 29.25M 27.16M
Change To Netincome -8.21M -11.16M -7.27M -6.46M
Change To Account Receivables 1.48M -31.58M 9.21M -10.61M
Change To Liabilities 1.26M 4.51M -1.78M 1.28M
Change To Inventory -1M 374k -17k -964k
Total Cash From Operating Activities 145.25M 99.68M 117.14M 112.19M
Capital Expenditures -21.45M -22.36M -38.69M -41.4M
Investments 7.91M 10.32M 10.1M 10.84M
Other Cashflows From Investing Activities -488k -488k -488k -488k
Total Cashflows From Investing Activities -14.12M -12.16M -29.1M -31.55M
Dividends Paid -95.24M -84.35M -90.47M -88.43M
Net Borrowings -35.57M -3.85M 41.83M 41.25M
Total Cash From Financing Activities -131.74M -88.2M -83.38M -82.58M
Change In Cash -614k -679k 4.66M -1.93M
Repurchase Of Stock -931k -931k -716k -1.39M