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).

0006 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 Power Assets Holdings Limited (0006), the free cash flow value is 939.00M.

All amounts in HKD

Operating Cash
939M
Capital Expenditure
-
Free Cash Flow
939.00M

Power Assets 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).

0006 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Power Assets Holdings Limited (HKEX:0006).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income6.14B6.13B7.13B7.64B
Depreciation3M4M2M1M
Change To Netincome-4.97B-5.13B-5.59B-6.54B
Change To Account Receivables-53M13M-231M-79M
Change To Liabilities-220M-46M102M1.51B
Change To Operating Activities44M-13M14M32M
Total Cash From Operating Activities939M962M1.42B2.56B
Investments1.23B1.5B-1.91B-4.06B
Other Cashflows From Investing Activities4.71B3.64B4.48B4.64B
Total Cashflows From Investing Activities5.93B5.13B2.56B584M
Dividends Paid-6.02B-5.98B-5.98B-5.98B
Net Borrowings3M-3M-2M-3.7B
Total Cash From Financing Activities-6.02B-5.98B-5.98B-22.48B
Effect Of Exchange Rate-1M32M2M18M
Change In Cash853M149M-1.99B-19.33B