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).

## RAD 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 Radius Residential Care Limited (RAD), the free cash flow value is -28.55M.

All amounts in NZD

Operating Cash
9.88M
Capital Expenditure
-38.43M
Free Cash Flow
-28.55M

Radius Residential Care Limited has a negative 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).

## RAD Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Radius Residential Care Limited (NZX:RAD).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 2.67M 1.71M -2.83M 4.18M
Depreciation 11.19M 11.55M 10.91M 3.58M
Change To Netincome -3.24M -3.54M -835k -1.74M
Change To Account Receivables -2.41M 484k -465k 713k
Change To Liabilities 1.17M 798k 482k 1.61M
Change To Inventory -180k -240k -140k 13k
Change To Operating Activities 1.36M 3.3M 2.86M -37k
Total Cash From Operating Activities 9.88M 14.47M 10.2M 7.92M
Capital Expenditures -38.43M -4.14M -11.3M -4.6M
Total Cashflows From Investing Activities -52.79M -5.05M -14.91M -2.78M
Dividends Paid -2.48M -732k -225k -900k
Net Borrowings -1.08M -8.24M 3.02M -1.78M
Other Cashflows From Financing Activities -2.43M -2.43M -2.43M -2.43M
Total Cash From Financing Activities 42.24M -8.97M 2.79M -2.68M
Change In Cash -673k 444k -1.92M 2.47M
Issuance Of Stock 48.23M 48.23M 48.23M 48.23M