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
Capital Expenditure
Free Cash Flow

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