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
7.47B
Capital Expenditure
-8.64B
Free Cash Flow
-1.17B

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
Depreciation5.43B5.37B5.24B4.99B
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
Investments-1.09B-507M-1.42B-1.84B
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