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).

RBD 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 Restaurant Brands New Zealand Limited (RBD), the free cash flow value is 43.81M.

All amounts in NZD

Operating Cash
126.38M
Capital Expenditure
-82.56M
Free Cash Flow
43.81M

Restaurant Brands New Zealand 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).

RBD Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Restaurant Brands New Zealand Limited (NZX:RBD).

31 Dec 2021 31 Dec 2020 31 Dec 2019 25 Feb 2019
Net Income 51.88M 30.64M 36.11M 35.74M
Depreciation 84.08M 69.02M 60.38M 33.66M
Change To Netincome -8.59M -2.57M -750k -594k
Change To Account Receivables 1.09M -74k 774k -3.54M
Change To Liabilities 7.6M 15.97M 9.15M 3.6M
Change To Inventory -5.53M -3.63M -2.6M 1.73M
Total Cash From Operating Activities 126.38M 111.16M 105.15M 71.26M
Capital Expenditures -82.56M -58.59M -65.73M -33.11M
Other Cashflows From Investing Activities 1.26M 125k 126k 46k
Total Cashflows From Investing Activities -109.57M -177.28M -71.6M -26.73M
Net Borrowings -10.06M 73.61M -9.83M -21.95M
Total Cash From Financing Activities -10.06M 73.61M -9.83M -39.71M
Effect Of Exchange Rate 1.48M -6.93M 201.6k 70k
Change In Cash 9.49M 701k 23.92M 4.89M