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).

0012 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 Henderson Land Development Company Limited (0012), the free cash flow value is 685.00M.

All amounts in HKD

Operating Cash
685M
Capital Expenditure
-
Free Cash Flow
685.00M

Henderson Land Development Company 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).

0012 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Henderson Land Development Company Limited (HKEX:0012).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income13.2B10.19B16.99B31.16B
Depreciation505M428M377M68M
Change To Netincome-6.69B420M-8.57B-23.28B
Change To Account Receivables336M1.53B1.05B2.38B
Change To Liabilities-509M-6.52B-995M4.65B
Change To Inventory-7.93B953M-2.89B-9.96B
Change To Operating Activities1.78B64M787M-1.19B
Total Cash From Operating Activities685M7.07B6.74B3.82B
Investments-5.49B-3.33B-5.54B-5.48B
Other Cashflows From Investing Activities4.44B4.41B4.65B4.58B
Total Cashflows From Investing Activities-50.04B-974M-3.82B-7.34B
Dividends Paid-8.71B-8.71B-8.14B-7.12B
Net Borrowings62.88B202M4.89B6.21B
Other Cashflows From Financing Activities-2.11B-2.24B-2.62B-2.82B
Total Cash From Financing Activities52.05B-10.75B-5.87B-3.73B
Effect Of Exchange Rate55M376M-317M-682M
Change In Cash2.75B-4.28B-3.27B-7.93B