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