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).

0386 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 China Petroleum & Chemical Corporation (0386), the free cash flow value is 80.253B.

All amounts in CNY

Operating Cash
225.17B
Capital Expenditure
-144.92B
Free Cash Flow
80.253B

China Petroleum & Chemical Corporation 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).

0386 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for China Petroleum & Chemical Corporation (HKEX:0386).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income71.21B33.27B57.49B61.62B
Depreciation117.58B112.2B109.17B113.99B
Change To Netincome38.07B1.93B23.48B2.5B
Change To Account Receivables-8.18B-17.61B-11.91B-1.04B
Change To Liabilities64.08B16.08B-14.9B2.11B
Change To Inventory-58.37B22.41B-9.75B-3.31B
Change To Operating Activities775M237M237M237M
Total Cash From Operating Activities225.17B168.52B153.62B175.87B
Capital Expenditures-144.92B-131.64B-141.55B-103.01B
Investments-3.27B-1.09B7.14B13.58B
Other Cashflows From Investing Activities-2.58B-22.11B13.68B16.53B
Total Cashflows From Investing Activities-145.2B-102.65B-121.05B-66.42B
Dividends Paid-40.96B-30.52B-46.01B-67.8B
Net Borrowings-1.19B3.34B-28.5B-25.5B
Other Cashflows From Financing Activities-15.8B-1.86B-9.7B-17.96B
Total Cash From Financing Activities-57.94B-37.51B-84.2B-111.26B
Effect Of Exchange Rate-1B-1.24B147M518M
Change In Cash21.03B27.12B-51.49B-1.3B