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