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).

## SAN 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 Sanford Limited (SAN), the free cash flow value is -8.54M.

All amounts in NZD

Operating Cash
44.9M
Capital Expenditure
-53.44M
Free Cash Flow
-8.54M

Sanford 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).

## SAN Cash Flow Statement History

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

30 Sep 2022 30 Sep 2021 30 Sep 2020 30 Sep 2019
Net Income 55.89M 16.26M 19.43M 41.7M
Depreciation 34.89M 36.12M 34.9M 20.88M
Change To Netincome -48.46M -18.7M -10.88M -5.06M
Change To Account Receivables -14.81M -16.78M 7.07M -11.09M
Change To Liabilities 3.88M 1.67M 6.03M 8.13M
Change To Inventory 8.38M 10.16M -36.88M -2.7M
Total Cash From Operating Activities 44.9M 32.23M 14.6M 48.65M
Capital Expenditures -53.44M -39.08M -39.01M -38.35M
Investments 353k 177k -4.25M 8.95M
Total Cashflows From Investing Activities -339k -15.48M -39.55M -5.44M
Dividends Paid -201k -201k -17.77M -21.51M
Net Borrowings -28.86M -13.52M 35.06M -16M
Total Cash From Financing Activities -29.06M -13.52M 17.29M -37.51M
Effect Of Exchange Rate 103k -54k 77k -15k
Change In Cash 15.61M 3.18M -7.58M 5.69M