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).

0066 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 MTR Corporation Limited (0066), the free cash flow value is -1.17B.

All amounts in HKD

Operating Cash
Capital Expenditure
Free Cash Flow

MTR Corporation 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).

0066 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for MTR Corporation Limited (HKEX:0066).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income9.55B-4.81B11.93B16.01B
Change To Netincome-7.66B4.38B-59M-4.03B
Change To Account Receivables813M-3.58B-1.37B-1.18B
Change To Liabilities-515M-463M1.49B-4.66B
Change To Inventory-153M-119M-188M-169M
Total Cash From Operating Activities7.47B772M17.04B10.95B
Capital Expenditures-8.64B-6.12B-9.02B-6.51B
Other Cashflows From Investing Activities-1.79B910M-6.74B-7.1B
Total Cashflows From Investing Activities5.97B-675M-8.31B-11.66B
Dividends Paid-7.17B-6.81B-6.65B-1.28B
Net Borrowings-6.58B10.14B-1.68B-1.55B
Other Cashflows From Financing Activities-734M-484M-809M-918M
Total Cash From Financing Activities-14.53B2.84B-9.13B-3.82B
Effect Of Exchange Rate-42M592M-122M-535M
Change In Cash-1.13B3.53B-519M-5.07B
Repurchase Of Stock-116M-86M-88M-239M
Issuance Of Stock67M77M96M162M