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).

## SCL 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 Scales Corporation Limited (SCL), the free cash flow value is 30.27M.

All amounts in NZD

Operating Cash
44.87M
Capital Expenditure
-14.59M
Free Cash Flow
30.27M

Scales Corporation 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).

## SCL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Scales Corporation Limited (NZX:SCL).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 19.41M 26.93M 21.02M 118M
Depreciation 19.69M 19.55M 19.18M 17.48M
Change To Netincome 24.8M 9.26M 10.14M -82.82M
Change To Account Receivables -12.81M -8.83M 764k -579k
Change To Liabilities 13.43M -1.76M 5.96M -235k
Change To Inventory -12.55M -3.5M 28k 3.54M
Change To Operating Activities -1.3M -687k -2.83M -2.05M
Total Cash From Operating Activities 44.87M 39.84M 53.22M 56.1M
Capital Expenditures -14.59M -15.82M -24.24M -16.31M
Investments 56.21M 19.31M 37.37M -127.5M
Other Cashflows From Investing Activities 112k 1.23M 382k 722k
Total Cashflows From Investing Activities 38.72M 7.78M 13.68M 5.36M
Dividends Paid -26.86M -26.77M -26.68M -26.62M
Net Borrowings -8.28M -25.84M -6.34M -19.79M
Other Cashflows From Financing Activities -17.52M -8.87M -4.59M -3.17M
Total Cash From Financing Activities -52.54M -61.13M -37.62M -49.58M
Effect Of Exchange Rate 1.53M 677k -690k -201k
Change In Cash 32.57M -12.83M 28.59M 11.67M
Issuance Of Stock 116k 347k 347k 347k