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