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).

SDL 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 Solution Dynamics Limited (SDL), the free cash flow value is 2.83M.

All amounts in NZD

Operating Cash
2.98M
Capital Expenditure
-154k
Free Cash Flow
2.83M

Solution Dynamics 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).

SDL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Solution Dynamics Limited (NZX:SDL).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 2.56M 2.03M 1.87M 526k
Depreciation 939k 1.27M 1.27M 1.25M
Change To Netincome 286k -1.1M -1.05M 182k
Change To Account Receivables 1.48M -717k -1.54M -419k
Change To Liabilities -1.14M 672k 803k -165k
Change To Inventory -69k 52k 143k -176k
Change To Operating Activities -1.2M 229k 4.07M -120k
Total Cash From Operating Activities 2.98M 2.61M 5.77M 1.3M
Capital Expenditures -154k -149k -216k -358k
Other Cashflows From Investing Activities -2.86M -600k -600k -600k
Total Cashflows From Investing Activities -3.02M -749k -222k -386k
Dividends Paid -1.9M -1.9M -732k -804k
Net Borrowings 2.13M -185k -858k -770k
Other Cashflows From Financing Activities -59k -70k -124k -172k
Total Cash From Financing Activities 332k -2.16M -1.71M -1.69M
Change In Cash 296k -299k 3.83M -774k
Issuance Of Stock 161k 161k 161k 56k