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
Capital Expenditure
Free Cash Flow

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