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).

## 0700 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 Tencent Holdings Limited (0700), the free cash flow value is -18.014B.

All amounts in CNY

Operating Cash
-
Capital Expenditure
-18.01B
Free Cash Flow
-18.014B

Tencent Holdings 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).

## 0700 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Tencent Holdings Limited (HKEX:0700).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 224.82B 159.85B 93.31B
Depreciation 61.22B 56.19B 49.68B 43.99B
Change To Netincome -103.37B -108.2B -43.92B -4.72B
Change To Liabilities 22.89B 31.22B 18.5B
Capital Expenditures -18.01B -29.3B -34.07B -22.77B
Other Cashflows From Investing Activities -86.86B -4.08B 5.63B -8.52B
Dividends Paid -15.26B -12.5B -10.34B -8.31B
Other Cashflows From Financing Activities -12.93B -17.29B -16.82B -8.39B
Repurchase Of Stock -32.76B -5B -1.86B -2.45B
Issuance Of Stock 995M 1.04B 1.72B 272M