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).

## SKO 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 Serko Limited (SKO), the free cash flow value is -19.23M.

All amounts in NZD

Operating Cash
-18.46M
Capital Expenditure
-774k
Free Cash Flow
-19.23M

Serko 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).

## SKO Cash Flow Statement History

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

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income -35.96M -29.39M -9.36M 1.63M
Depreciation 1.94M 2.02M 1.78M 370k
Change To Netincome 4.14M 4.38M 1.53M 638k
Change To Account Receivables -833k 1.19M -1.08M -1.79M
Change To Liabilities 6.03M 69k 2.28M 2M
Total Cash From Operating Activities -18.46M -18.04M -3.79M 3.65M
Capital Expenditures -774k -559k -794k -466k
Investments -45M -45M -45M -45M
Total Cashflows From Investing Activities -61.09M -52.79M -11.81M -7.28M
Net Borrowings -926k -1.08M -934k -50k
Other Cashflows From Financing Activities -3.19M -2.54M -1.79M -778k
Total Cash From Financing Activities 79.17M 63.93M 42.27M 14.22M
Effect Of Exchange Rate -23k -567k -13k -88k
Change In Cash -406k -7.47M 26.66M 10.5M
Issuance Of Stock 83.28M 67.54M 45M 15.05M