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
436.72B
Capital Expenditure
-21.23B
Free Cash Flow
415.483B

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 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 302.51B 271.05B 266.73B 254.66B
Depreciation 25.41B 24.91B 22.98B 17.12B
Change To Netincome -66.11B 736M -20.33B -22.06B
Change To Liabilities -4.04B -16.21B -17.14B -18.15B
Change To Operating Activities 177.06B 298.93B 328.09B 211.45B
Total Cash From Operating Activities 436.72B 580.68B 581.29B 443.77B
Capital Expenditures -21.23B -25.74B -23.23B -20.78B
Investments -736.83B -826.4B -464.55B -354.66B
Other Cashflows From Investing Activities 236.57B 208.35B 192.87B 176.47B
Total Cashflows From Investing Activities -518.55B -642.16B -292.55B -197.72B
Dividends Paid -86.36B -85.63B -80.47B -76.81B
Net Borrowings 128.78B 38.86B -36.95B 117.2B
Other Cashflows From Financing Activities -26.29B -23.26B -24.42B -11.47B
Total Cash From Financing Activities 16.12B -89.96B -101.84B 28.92B
Effect Of Exchange Rate -7.62B -21.98B 4.74B 14.39B
Change In Cash -73.33B -173.41B 191.64B 289.36B