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).

## 0002 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 CLP Holdings Limited (0002), the free cash flow value is 5.011B.

All amounts in HKD

Operating Cash
18.08B
Capital Expenditure
-13.07B
Free Cash Flow
5.011B

CLP 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).

## 0002 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for CLP Holdings Limited (HKEX:0002).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income8.63B11.59B4.87B13.8B
Depreciation9.31B8.48B8.12B8.01B
Change To Netincome40M1.39B8.73B-3.32B
Change To Account Receivables-2.35B-144M341M-688M
Change To Liabilities128M535M-725M361M
Change To Operating Activities2.32B522M16M954M
Total Cash From Operating Activities18.08B22.37B21.34B23.95B
Capital Expenditures-13.07B-10.91B-10.76B-10.59B
Investments528M-1.28B3.67B-466M
Other Cashflows From Investing Activities1.46B2.33B2.12B1.47B
Total Cashflows From Investing Activities-11.82B-10.08B-5.82B-11.26B
Dividends Paid-7.83B-7.78B-7.78B-7.5B
Net Borrowings2.32B213M-3.66B-2.46B
Other Cashflows From Financing Activities-2.97B-2.64B-3.5B-1.55B
Total Cash From Financing Activities-8.48B-10.21B-14.94B-11.51B
Effect Of Exchange Rate-30M195M-61M-351M
Change In Cash-2.26B2.28B516M836M