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).

## SCY 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 Smiths City Group Limited (SCY), the free cash flow value is -7.70M.

All amounts in NZD

Operating Cash
-6M
Capital Expenditure
-1.7M
Free Cash Flow
-7.70M

Smiths City Group 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).

## SCY Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Smiths City Group Limited (NZX:SCY).

30 Apr 2019 30 Apr 2018 30 Apr 2017 30 Apr 2016
Net Income -1.7M -7.2M 2.4M 5.6M
Depreciation 2.1M 1.7M 1.3M 1.1M
Change To Netincome 1.8M -2.4M -400k -4.3M
Change To Account Receivables -100k -4.2M -500k 1.2M
Change To Liabilities -6M 3.9M -600k -300k
Change To Inventory -2.6M 6.1M 4.1M 5.9M
Total Cash From Operating Activities -6M -1.4M 6.8M 9.7M
Capital Expenditures -1.7M -5M -2.4M -1.3M
Other Cashflows From Investing Activities 3.8M -5.1M 3.6M 2.1M
Total Cashflows From Investing Activities 2.1M -10.1M 1.2M 15.1M
Net Borrowings 4.1M 7.6M -2.9M -17.4M
Total Cash From Financing Activities 4.1M 5.7M -4.7M -19.2M
Change In Cash 200k -5.8M 3.3M 5.6M