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 77.33M.

All amounts in NZD

Operating Cash
99.68M
Capital Expenditure
-22.36M
Free Cash Flow
77.33M

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 202130 Jun 202030 Jun 201930 Jun 2018
Net Income102.38M88.68M100.58M94.27M
Depreciation33.45M29.25M27.16M24.91M
Change To Netincome-11.16M-7.27M-6.46M-15.02M
Change To Account Receivables-31.58M9.21M-10.61M-7.48M
Change To Liabilities4.51M-1.78M1.28M1.49M
Change To Inventory374k-17k-964k-360k
Total Cash From Operating Activities99.68M117.14M112.19M99.43M
Capital Expenditures-22.36M-38.69M-41.4M-17.57M
Investments10.32M10.1M10.84M10.38M
Total Cashflows From Investing Activities-12.16M-29.1M-31.55M-7.31M
Dividends Paid-84.35M-90.47M-88.43M-80.99M
Net Borrowings-3.85M41.83M41.25M25.16M
Total Cash From Financing Activities-88.2M-83.38M-82.58M-91.47M
Change In Cash-679k4.66M-1.93M652k