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 145.884B.

All amounts in CNY

Operating Cash
175.19B
Capital Expenditure
-29.3B
Free Cash Flow
145.884B

Tencent Holdings 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).

0700 Cash Flow Statement History

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

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income224.82B159.85B93.31B78.72B
Depreciation56.19B49.68B43.99B33.44B
Change To Netincome-108.2B-43.92B-4.72B-6.52B
Change To Account Receivables-4.03B-7.53B-6.04B-10.3B
Change To Liabilities22.89B31.22B18.5B22.45B
Change To Inventory1.3B-95M-394M-29M
Change To Operating Activities-19.27B3.83B3.26B-7.63B
Total Cash From Operating Activities175.19B194.12B148.59B110.94B
Capital Expenditures-29.3B-34.07B-22.77B-19.74B
Investments-90.55B-105.91B-50.24B-98.86B
Other Cashflows From Investing Activities-4.08B5.63B-8.52B4.38B
Total Cashflows From Investing Activities-178.55B-181.96B-116.17B-151.91B
Dividends Paid-12.5B-10.34B-8.31B-6.78B
Net Borrowings55.37B40.95B20.56B37.84B
Other Cashflows From Financing Activities-17.29B-16.82B-8.39B2.05B
Total Cash From Financing Activities21.62B13.65B1.67B30.89B
Effect Of Exchange Rate-3.09B-6B1.08B2.21B
Change In Cash15.17B19.81B35.18B-7.88B
Repurchase Of Stock-5B-1.86B-2.45B-2.75B
Issuance Of Stock1.04B1.72B272M525M