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).

1088 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 Shenhua Energy Company Limited (1088), the free cash flow value is 71.339B.

All amounts in CNY

Operating Cash
Capital Expenditure
Free Cash Flow

China Shenhua Energy 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).

1088 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for China Shenhua Energy Company Limited (HKEX:1088).

31 Dec 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 51.61B 35.85B 41.71B 44.14B
Depreciation 20.38B 19.55B 20.86B 22.96B
Change To Netincome 15.96B 11.55B 8.32B 15.66B
Change To Account Receivables -2.78B -2.69B 2.94B 851M
Change To Liabilities 3.93B 4.17B -356M -1.54B
Change To Inventory -157M -909M -2.45B -141M
Change To Operating Activities 4.46B 12.83B -7.92B 6B
Total Cash From Operating Activities 94.58B 81.29B 63.11B 88.25B
Capital Expenditures -23.24B -20.03B -18.13B -19.39B
Investments 8.75B 53.04B -32.05B -33.57B
Other Cashflows From Investing Activities 2.17B -823M 9.32B -1.04B
Total Cashflows From Investing Activities -6.84B 32.05B -46.31B -53.06B
Dividends Paid -35.96B -25.06B -17.5B -18.1B
Net Borrowings 1.17B -6.64B -10.67B -11.94B
Other Cashflows From Financing Activities -8.94B -10.12B -9B -14.68B
Total Cash From Financing Activities -43.73B -42.08B -37.17B -44.72B
Effect Of Exchange Rate -174M -131M 337M 49M
Change In Cash 43.83B 71.05B -20.04B -10.01B