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