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).

## 0019 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 Swire Pacific Limited (0019), the free cash flow value is 7.853B.

All amounts in HKD

Operating Cash
11.66B
Capital Expenditure
-3.81B
Free Cash Flow
7.853B

Swire Pacific 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).

## 0019 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Swire Pacific Limited (HKEX:0019).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 3.36B -11B 9.01B 23.63B
Depreciation 4.04B 4.14B 4.71B 3.69B
Change To Netincome 5.61B 17.91B -437M -15.89B
Change To Account Receivables -139M -781M 808M 604M
Change To Liabilities 2.19B 464M -2.41B 3.06B
Change To Inventory -3.43B 691M -1.25B 185M
Total Cash From Operating Activities 11.66B 11.46B 10.54B 15.44B
Capital Expenditures -3.81B -2.82B -3.78B -4.47B
Investments -4.47B -6.16B 2.19B 2.03B
Other Cashflows From Investing Activities 446M 807M -1.46B -1.35B
Total Cashflows From Investing Activities -6.34B 1.73B 12.37B 2.48B
Dividends Paid -3B -3.53B -4.73B -3.45B
Net Borrowings -7.92B -805M -4.52B -6.95B
Other Cashflows From Financing Activities -1.42B -1.35B -1.3B -4.15B
Total Cash From Financing Activities -12.34B -5.69B -10.55B -14.57B
Effect Of Exchange Rate 307M 415M -138M -200M
Change In Cash -6.71B 7.91B 12.22B 3.15B