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).

## SUM 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 Summerset Group Holdings Limited (SUM), the free cash flow value is 325.49M.

All amounts in NZD

Operating Cash
383.4M
Capital Expenditure
-57.92M
Free Cash Flow
325.49M

Summerset Group 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).

## SUM Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Summerset Group Holdings Limited (NZX:SUM).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 543.66M 230.78M 175.26M 214.5M
Depreciation 10.52M 7.01M 6.76M 5.3M
Change To Netincome -605.43M -272.34M -202.49M -241.42M
Change To Account Receivables -1.62M 1.63M -10.72M -2.39M
Change To Liabilities -141k 903k 624k 2.01M
Change To Operating Activities 435.38M 297.78M 267.39M 238.42M
Total Cash From Operating Activities 383.4M 266.85M 237.9M 217.8M
Capital Expenditures -57.92M -37.43M -29.53M -24M
Total Cashflows From Investing Activities -425M -318.78M -327.41M -290.4M
Dividends Paid -23.71M -19.39M -19.54M -19.68M
Net Borrowings 65.38M 76.91M 134.37M 103.66M
Other Cashflows From Financing Activities -12.41M -15.44M -13.55M -13.37M
Total Cash From Financing Activities 34.2M 46.28M 103.49M 72.51M
Change In Cash -7.39M -5.64M 13.98M -84k
Issuance Of Stock 4.94M 4.2M 2.21M 1.9M