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 202131 Dec 202031 Dec 201931 Dec 2018
Net Income51.61B35.85B41.71B44.14B
Change To Netincome15.96B11.55B8.32B15.66B
Change To Account Receivables-2.78B-2.69B2.94B851M
Change To Liabilities3.93B4.17B-356M-1.54B
Change To Inventory-157M-909M-2.45B-141M
Change To Operating Activities4.46B12.83B-7.92B6B
Total Cash From Operating Activities94.58B81.29B63.11B88.25B
Capital Expenditures-23.24B-20.03B-18.13B-19.39B
Other Cashflows From Investing Activities2.17B-823M9.32B-1.04B
Total Cashflows From Investing Activities-6.84B32.05B-46.31B-53.06B
Dividends Paid-35.96B-25.06B-17.5B-18.1B
Net Borrowings1.17B-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-131M337M49M
Change In Cash43.83B71.05B-20.04B-10.01B