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).

SML 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 Synlait Milk Limited (SML), the free cash flow value is 175.72M.

All amounts in NZD

Operating Cash
Capital Expenditure
Free Cash Flow

Synlait Milk 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).

SML Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Synlait Milk Limited (NZX:SML).

31 Jul 2022 31 Jul 2021 31 Jul 2020 31 Jul 2019
Net Income 38.52M -28.45M 74.31M 82.24M
Depreciation 51.78M 51.99M 45.25M 25.83M
Change To Netincome 27.91M 33.2M 32.96M 15.14M
Change To Account Receivables 17.28M -45.32M 1.83M -14.79M
Change To Liabilities 56.8M 31.81M 34.67M 46.31M
Change To Inventory 38M -1.56M -104.53M -19.44M
Change To Operating Activities -1.03M 44k 21.65M -2.37M
Total Cash From Operating Activities 232.92M 18.39M 103.76M 136.56M
Capital Expenditures -57.2M -116.16M -139.21M -309.31M
Other Cashflows From Investing Activities 170k 44k 134k 1.08M
Total Cashflows From Investing Activities -65.62M -139.3M -223.25M -337.36M
Net Borrowings -143.12M -41.91M 135.8M 202.6M
Other Cashflows From Financing Activities -26.05M -27.02M -26.42M -18.07M
Total Cash From Financing Activities -169.17M 131.06M 109.38M 184.54M
Effect Of Exchange Rate 341k -24k -19k 143k
Change In Cash -1.53M 10.13M -10.12M -16.12M