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).

0939 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 Construction Bank Corporation (0939), the free cash flow value is 415.483B.

All amounts in CNY

Operating Cash
Capital Expenditure
Free Cash Flow

China Construction Bank Corporation 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).

0939 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for China Construction Bank Corporation (HKEX:0939).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income302.51B271.05B266.73B254.66B
Change To Netincome-66.11B736M-20.33B-22.06B
Change To Liabilities-4.04B-16.21B-17.14B-18.15B
Change To Operating Activities177.06B298.93B328.09B211.45B
Total Cash From Operating Activities436.72B580.68B581.29B443.77B
Capital Expenditures-21.23B-25.74B-23.23B-20.78B
Other Cashflows From Investing Activities236.57B208.35B192.87B176.47B
Total Cashflows From Investing Activities-518.55B-642.16B-292.55B-197.72B
Dividends Paid-86.36B-85.63B-80.47B-76.81B
Net Borrowings128.78B38.86B-36.95B117.2B
Other Cashflows From Financing Activities-26.29B-23.26B-24.42B-11.47B
Total Cash From Financing Activities16.12B-89.96B-101.84B28.92B
Effect Of Exchange Rate-7.62B-21.98B4.74B14.39B
Change In Cash-73.33B-173.41B191.64B289.36B