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).

## SCT 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 Scott Technology Limited (SCT), the free cash flow value is -2.58M.

All amounts in NZD

Operating Cash
6.31M
Capital Expenditure
-8.89M
Free Cash Flow
-2.58M

Scott Technology 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).

## SCT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Scott Technology Limited (NZX:SCT).

31 Aug 2022 31 Aug 2021 31 Aug 2020 31 Aug 2019
Net Income 12.64M 8.52M -17.33M 8.69M
Depreciation 8.05M 8.84M 9.9M 8.97M
Change To Netincome 3.26M 856k -5.71M -958k
Change To Account Receivables -6.1M -3.16M 33.02M -1.93M
Change To Liabilities 8.57M -251k -7.02M 734k
Change To Inventory -10.86M -443k -123k 265k
Change To Operating Activities -7.13M -3.18M 6.96M -12.53M
Total Cash From Operating Activities 6.31M 13.43M 19.56M 726k
Capital Expenditures -8.89M -4.51M -3.21M -7.23M
Other Cashflows From Investing Activities 896k 896k 824k 479k
Total Cashflows From Investing Activities -7.82M -2.78M 189k -13.69M
Dividends Paid -2.69M -702k -1.35M -3.2M
Net Borrowings -2.6M -4.06M -4.49M 666k
Other Cashflows From Financing Activities -1.52M -1.39M -1.43M -1.72M
Total Cash From Financing Activities -6.8M -6.15M -7.27M -4.25M
Change In Cash -8.31M 4.5M 12.48M -17.21M