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).

## THL 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 Tourism Holdings Limited (THL), the free cash flow value is -24.55M.

All amounts in NZD

Operating Cash
-21.62M
Capital Expenditure
-2.93M
Free Cash Flow
-24.55M

Tourism 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).

## THL Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Tourism Holdings Limited (NZX:THL).

30 Jun 2022 30 Jun 2021 30 Jun 2020 30 Jun 2019
Net Income -1.48M -13.68M 27.36M 29.75M
Depreciation 45.36M 48.23M 62.62M 52.21M
Change To Netincome -41.45M 35.45M -1.67M -67.41M
Change To Account Receivables 618k 10.63M 1.82M -5.88M
Change To Liabilities 2.63M 1.72M -18.74M -3.47M
Change To Inventory -19.94M 3.64M -23k 3.76M
Change To Operating Activities 705k 122k -1.32M 54k
Total Cash From Operating Activities -21.62M 86.98M 69.09M 10.2M
Capital Expenditures -2.93M -1.2M -4.12M -3.88M
Investments 23.14M 4.98M -10.95M -10.34M
Total Cashflows From Investing Activities 15.78M -592k -15.38M -14.62M
Net Borrowings 3.29M -82.3M -59.23M -1.68M
Total Cash From Financing Activities 3.48M -82M -27.32M -308k
Effect Of Exchange Rate 3.08M -1.82M 287k 31k
Change In Cash 729k 2.57M 26.68M -4.7M
Issuance Of Stock 193k 304k 49.28M 30.8M