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