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
Capital Expenditure
Free Cash Flow

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