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).

0011 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 Hang Seng Bank Limited (0011), the free cash flow value is -48.526B.

All amounts in HKD

Operating Cash
-46.38B
Capital Expenditure
-2.15B
Free Cash Flow
-48.526B

Hang Seng Bank 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).

0011 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Hang Seng Bank Limited (HKEX:0011).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income13.96B16.69B24.84B24.21B
Depreciation2.07B2.09B1.97B1.36B
Change To Netincome4.82B-15.54B-7.08B-666M
Change To Liabilities
Change To Operating Activities-57.38B7.13B-54.92B-79.08B
Total Cash From Operating Activities-46.38B20.9B-35.22B-47.5B
Capital Expenditures-2.15B-2.11B-1.73B-892M
Investments24.45B-56.66B-40.33B-23.24B
Other Cashflows From Investing Activities2M2M2M74M
Total Cashflows From Investing Activities24.57B-52.7B-40.01B-21.55B
Dividends Paid-12.37B-13.51B-15.26B-13.8B
Net Borrowings4.42B-596M18.95B18.95B
Other Cashflows From Financing Activities31.86B61.23B61.89B81.76B
Total Cash From Financing Activities23.92B47.13B70.27B67.96B
Effect Of Exchange Rate-591M1.59B-401M-1.49B
Change In Cash1.52B16.91B-5.36B-2.59B