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).

## SKT 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 SKY Network Television Limited (SKT), the free cash flow value is 99.83M.

All amounts in NZD

Operating Cash
119.64M
Capital Expenditure
-19.81M
Free Cash Flow
99.83M

SKY Network Television 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).

## SKT Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for SKY Network Television Limited (NZX:SKT).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 62.15M 43.96M -156.98M -608.16M
Depreciation 59.77M 74.67M 89.99M 70.94M
Change To Netincome -51k -6.51M 171.7M 703.81M
Change To Account Receivables 229k -9.28M 10.13M -65k
Change To Liabilities -3.76M -39.24M 17.63M 5.36M
Change To Inventory -19.52M 5.05M -5.06M -16.8M
Total Cash From Operating Activities 119.64M 101.17M 157.3M 178.03M
Capital Expenditures -19.81M -25.66M -27.47M -66.31M
Total Cashflows From Investing Activities 17.9M -38.15M -74.63M -69.78M
Net Borrowings -33.28M -138.67M -125.99M -41.49M
Other Cashflows From Financing Activities -138k -224k -7.38M -246k
Total Cash From Financing Activities -33.42M -138.9M 23.72M -108.66M
Change In Cash 104.12M -75.88M 106.39M -411k