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
Capital Expenditure
Free Cash Flow

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
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
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