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