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).

## SEK 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 Seeka Limited (SEK), the free cash flow value is 12.09M.

All amounts in NZD

Operating Cash
41.58M
Capital Expenditure
-29.49M
Free Cash Flow
12.09M

Seeka 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).

## SEK Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Seeka Limited (NZX:SEK).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 14.86M 15.15M 6.88M 6.65M
Depreciation 23.16M 18.32M 16.24M 14.52M
Change To Netincome 7.83M -14.24M -6.08M -1.59M
Change To Account Receivables 6.17M -3.88M -343k 621k
Change To Liabilities -7.04M 5.42M 2.71M -2.72M
Change To Inventory 940k 2.3M -3.38M 244k
Total Cash From Operating Activities 41.58M 26.35M 18.59M 16.35M
Capital Expenditures -29.49M -21.34M -66.03M -67.5M
Investments -2.84M -1M -1M 9.38M
Other Cashflows From Investing Activities -6k 247k -1.34M -191k
Total Cashflows From Investing Activities -29.75M 20.99M -35.94M -52.86M
Dividends Paid -7.83M -2.73M -6.31M -3.63M
Net Borrowings -1.5M -43.44M 23.89M -8.46M
Total Cash From Financing Activities -3.88M -45.8M 19.14M 36.05M
Effect Of Exchange Rate -749k 771k -279k -587k
Change In Cash 7.2M 2.31M 1.51M -1.05M
Issuance Of Stock 9.33M 368k 1.56M 48.13M