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).

1044 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 Hengan International Group Company Limited (1044), the free cash flow value is 3.822272B.

All amounts in CNY

Operating Cash
Capital Expenditure
Free Cash Flow

Hengan International Group Company 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).

1044 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Hengan International Group Company Limited (HKEX:1044).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income3.27B4.59B3.91B3.8B
Change To Netincome-321.8M-551.59M-214.24M-22.73M
Change To Account Receivables317.43M359.19M-1.07B-274.63M
Change To Liabilities324.57M322.46M-501.48M473.59M
Change To Inventory138.91M-520.52M478.45M-783.22M
Total Cash From Operating Activities4.6B5.04B3.42B3.96B
Capital Expenditures-781.33M-760.7M-898.14M-701.35M
Other Cashflows From Investing Activities933.86M1.08B1.04B690.77M
Total Cashflows From Investing Activities2.68B1.56B1.11B-895.2M
Dividends Paid-2.71B-2.91B-2.62B-2.59B
Net Borrowings-2.36B-62.98M-2.88B4.67B
Other Cashflows From Financing Activities-479.48M-797.86M-822.35M-551.24M
Total Cash From Financing Activities-6.49B-3.93B-6.54B953.84M
Effect Of Exchange Rate-60.4M-181.58M61.2M263.18M
Change In Cash732.76M2.49B-1.95B4.28B
Repurchase Of Stock-936.73M-154.41M-215.57M-590.62M