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
Capital Expenditure
Free Cash Flow

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