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
Free Cash Flow

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