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).

## 0688 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 Overseas Land & Investment Limited (0688), the free cash flow value is 22.338606B.

All amounts in CNY

Operating Cash
22.56B
Capital Expenditure
-226.13M
Free Cash Flow
22.338606B

China Overseas Land & Investment 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).

## 0688 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for China Overseas Land & Investment Limited (HKEX:0688).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income40.16B43.9B41.62B37.72B
Depreciation407.94M370.85M236.25M182.93M
Change To Netincome-9.45B-12.17B-7.61B-211.94M
Change To Account Receivables4.91B-4.05B-2.94B-4.36B
Change To Liabilities-17.34B38.27B26.82B7.35B
Change To Inventory-1.01B-64.71B-44.59B-40.33B
Change To Operating Activities4.89B9.58B-3.63B-7.16B
Total Cash From Operating Activities22.56B11.2B9.91B-6.8B
Capital Expenditures-226.13M-312.65M-124.69M-114.62M
Investments-6.94B6.29B-1.93B-4.51B
Other Cashflows From Investing Activities532.5M1.75B4.07B1.56B
Total Cashflows From Investing Activities-14.47B-4.04B-2.6B-6.98B
Dividends Paid-10.73B-9.97B-9.07B-7.82B
Net Borrowings33.8B26.19B19.03B28.75B
Other Cashflows From Financing Activities-8.54B-8.14B-8.48B-6.5B
Total Cash From Financing Activities14.43B8.04B1.48B14.43B
Effect Of Exchange Rate-327.68M-422.69M107.24M791.75M
Change In Cash22.2B14.77B8.9B1.44B
Repurchase Of Stock-108.41M-51.52M-51.52M-51.52M