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).

## TGG 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 T&G Global Limited (TGG), the free cash flow value is 6.46M.

All amounts in NZD

Operating Cash
55.36M
Capital Expenditure
-48.9M
Free Cash Flow
6.46M

T&G Global 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).

## TGG Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for T&G Global Limited (NZX:TGG).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 8.88M 11.06M 901k 3.58M
Depreciation 50.87M 44.56M 36.7M 22.21M
Change To Netincome -32.45M 12.97M 330k 196k
Change To Account Receivables 33.17M 6.28M -35.91M 4.02M
Change To Liabilities -6.78M -9.47M 49.01M -2.33M
Change To Inventory -7.57M -12.17M 1.75M 11.45M
Total Cash From Operating Activities 55.36M 56.28M 51.01M 39.25M
Capital Expenditures -48.9M -40.79M -35.78M -27.08M
Other Cashflows From Investing Activities 82.4M 52.94M 82.53M 1.85M
Total Cashflows From Investing Activities 60.79M -18.54M 37.19M 28.12M
Dividends Paid -7.35M -7.35M -7.35M -14.71M
Net Borrowings -88.51M -11.89M -79.97M -31.75M
Other Cashflows From Financing Activities -7.93M -8.75M -8.97M -9.13M
Total Cash From Financing Activities -103.79M -27.99M -88.94M -55.59M
Effect Of Exchange Rate 1.99M -1.29M 177k -1.41M
Change In Cash 14.34M 8.46M -570k 10.38M