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 24.02M.

All amounts in NZD

Operating Cash
39.84M
Capital Expenditure
-15.82M
Free Cash Flow
24.02M

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 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 26.93M 21.02M 118M 45.08M
Depreciation 19.55M 19.18M 17.48M 10.78M
Change To Netincome 9.26M 10.14M -82.82M -6.2M
Change To Account Receivables -8.83M 764k -579k -8.6M
Change To Liabilities -1.76M 5.96M -235k 9.73M
Change To Inventory -3.5M 28k 3.54M -23.34M
Change To Operating Activities -687k -2.83M -2.05M 7.52M
Total Cash From Operating Activities 39.84M 53.22M 56.1M 36.57M
Capital Expenditures -15.82M -24.24M -16.31M -15.59M
Investments 19.31M 37.37M -127.5M -932k
Other Cashflows From Investing Activities 1.23M 382k 722k 487k
Total Cashflows From Investing Activities 7.78M 13.68M 5.36M -31.69M
Dividends Paid -26.77M -26.68M -26.62M -25.18M
Net Borrowings -25.84M -6.34M -19.79M 20.77M
Other Cashflows From Financing Activities -8.87M -4.59M -3.17M -440k
Total Cash From Financing Activities -61.13M -37.62M -49.58M -4.74M
Effect Of Exchange Rate 677k -690k -201k -59k
Change In Cash -12.83M 28.59M 11.67M 80k
Issuance Of Stock 347k 347k 347k 109k