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).

0017 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 New World Development Company Limited (0017), the free cash flow value is 2.4855B.

All amounts in HKD

Operating Cash
9.65B
Capital Expenditure
-7.16B
Free Cash Flow
2.4855B

New World 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).

0017 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for New World Development Company Limited (HKEX:0017).

30 Jun 202130 Jun 202030 Jun 201930 Jun 2018
Net Income3.45B2.78B18.96B23.87B
Depreciation3.85B3.7B2.41B2.43B
Change To Netincome-19.12B-13.81B-9.64B-17.78B
Change To Account Receivables-239.6M-12.27B-693.7M-4.77B
Change To Liabilities9.37B-2.05B-16.29B13.95B
Change To Inventory9.1M42.9M25.8M-72.8M
Change To Operating Activities6.88B1.78B12.2B-10.01B
Total Cash From Operating Activities9.65B-10.29B7.01B7.68B
Capital Expenditures-7.16B-16.8B-10.14B-9.97B
Investments-3.09B-1.4B-4.78B354.4M
Other Cashflows From Investing Activities3.98B5.58B4.56B4.3B
Total Cashflows From Investing Activities3.04B-17.07B-19.16B6.82B
Dividends Paid-5.19B-5.22B-4.9B-858.3M
Net Borrowings-15.45B27.15B12.6B-6.79B
Other Cashflows From Financing Activities2.97B6.86B4.96B-6.89B
Total Cash From Financing Activities-17.91B28.53B12.69B-14.18B
Effect Of Exchange Rate2.44B-241.5M-756.4M514.8M
Change In Cash-2.78B927.7M-207.7M833.7M
Repurchase Of Stock-379.2M-614.8M-322.1M-130.9M
Issuance Of Stock147.6M350.4M349.4M490.2M