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).

0388 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 Hong Kong Exchanges and Clearing Limited (0388), the free cash flow value is 11.27B.

All amounts in HKD

Operating Cash
12.34B
Capital Expenditure
-1.07B
Free Cash Flow
11.27B

Hong Kong Exchanges and Clearing 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).

0388 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Hong Kong Exchanges and Clearing Limited (HKEX:0388).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income12.54B11.51B9.39B9.31B
Depreciation717M684M638M357M
Change To Netincome-1.56B2.19B-438M-306M
Change To Account Receivables15.39B-14.9B-5.48B-704M
Change To Liabilities
Change To Operating Activities-15.38B14.77B5.54B416M
Total Cash From Operating Activities12.34B14.77B10.06B9.48B
Capital Expenditures-1.07B-1.35B-1.09B-860M
Investments3.31B-6.19B-2.53B-4.53B
Other Cashflows From Investing Activities38M56M97M60M
Total Cashflows From Investing Activities2.28B-7.48B-3.48B-5.33B
Dividends Paid-11.53B-6.98B-5.79B-5.43B
Net Borrowings-310M-284M-903M-781M
Other Cashflows From Financing Activities-151M-176M-181M-11M
Total Cash From Financing Activities-12.67B-7.47B-7.15B-6.52B
Effect Of Exchange Rate9M26M26M26M
Change In Cash1.96B-161M-577M-2.37B
Repurchase Of Stock-681M-31M-285M-300M