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).

## RAK 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 Rakon Limited (RAK), the free cash flow value is 21.78M.

All amounts in NZD

Operating Cash
30.24M
Capital Expenditure
-8.46M
Free Cash Flow
21.78M

Rakon 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).

## RAK Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Rakon Limited (NZX:RAK).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 33.11M 9.64M 3.98M 3.36M
Depreciation 7.09M 6.63M 6.62M 3.77M
Change To Netincome 2.12M -2.72M 475k 465k
Change To Account Receivables -3.71M 1.5M -4.59M -5.01M
Change To Liabilities 10.36M 4.53M -2.15M 2.78M
Change To Inventory -21.56M -1.87M 3.02M -9.14M
Change To Operating Activities -17k -168k 171k -246k
Total Cash From Operating Activities 30.24M 20.06M 9.4M -1.77M
Capital Expenditures -8.46M -4.19M -3.75M -6.19M
Total Cashflows From Investing Activities -10.17M -5.08M -6.63M -12.67M
Net Borrowings 7.38M 3.49M -3.08M -24k
Total Cash From Financing Activities 7.38M 3.49M -3.08M -24k
Effect Of Exchange Rate 311k 765k -672k 144k
Change In Cash 27.75M 19.24M -980k -14.32M