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
Capital Expenditure
Free Cash Flow

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