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).

SPY 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 Smartpay Holdings Limited (SPY), the free cash flow value is 8.58M.

All amounts in NZD

Operating Cash
12.7M
Capital Expenditure
-4.12M
Free Cash Flow
8.58M

Smartpay Holdings 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).

SPY Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Smartpay Holdings Limited (NZX:SPY).

31 Mar 2022 31 Mar 2021 31 Mar 2020 31 Mar 2019
Net Income 3.1M -15.2M -4.47M -1.83M
Depreciation 5.11M 3.99M 4.43M 4.45M
Change To Netincome 30k 14.02M 2.52M 192k
Change To Account Receivables -256k -11k 9k -264k
Change To Liabilities 1.52M 1.17M 425k 605k
Change To Operating Activities 19k -22k -28k -161k
Total Cash From Operating Activities 12.7M 8.62M 6.47M 5.46M
Capital Expenditures -4.12M -2.91M -1.21M -2.82M
Total Cashflows From Investing Activities -9.45M -6.61M -6.2M -8.36M
Net Borrowings -2.46M -9.73M -1.58M 4.35M
Other Cashflows From Financing Activities 1.57M -2.14M -2.14M -2.14M
Total Cash From Financing Activities -889k 4.19M -1.58M 4.35M
Change In Cash 2.36M 6.19M -1.31M 1.45M