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).

STU 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 Steel & Tube Holdings Limited (STU), the free cash flow value is -40.30M.

All amounts in NZD

Operating Cash
-34.12M
Capital Expenditure
-6.18M
Free Cash Flow
-40.30M

Steel & Tube Holdings 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).

STU Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Steel & Tube Holdings Limited (NZX:STU).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income 30.19M 15.37M -60.01M 10.41M
Depreciation 17.39M 15.56M 17.95M 4.87M
Change To Netincome 11.33M -3.09M 47.7M 3.8M
Change To Account Receivables -18.39M -9.6M 16.94M 7.59M
Change To Liabilities 2.78M 21.15M 1.62M -15.04M
Change To Inventory -78.99M -12.41M 12.9M 2.08M
Total Cash From Operating Activities -34.12M 29.33M 39.61M 21.3M
Capital Expenditures -6.18M -5.54M -7.59M -7.15M
Total Cashflows From Investing Activities -6.11M 3.11M -1.65M -4.89M
Dividends Paid -14.59M -2.01M -2.52M -5.88M
Net Borrowings 37.82M -22.82M -27.03M -85.94M
Total Cash From Financing Activities 23.23M -24.83M -29.55M -12.99M
Change In Cash -16.99M 7.62M 8.41M 3.43M