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).

1398 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 Industrial and Commercial Bank of China Limited (1398), the free cash flow value is 333.298B.

All amounts in CNY

Operating Cash
Capital Expenditure
Free Cash Flow

Industrial and Commercial Bank of China 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).

1398 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Industrial and Commercial Bank of China Limited (HKEX:1398).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income348.34B315.91B312.22B297.68B
Change To Netincome-104.57B-60.86B-8.3B194.13B
Change To Liabilities
Change To Operating Activities85.79B1.27T-1.35T209.67B
Total Cash From Operating Activities360.88B1.56T-1.06T724.13B
Capital Expenditures-27.58B-38.01B-34.16B-60.5B
Other Cashflows From Investing Activities282.41B250.96B217.12B1.73B
Total Cashflows From Investing Activities-674.56B-1.14T-662.69B-731.75B
Dividends Paid-104.41B-102.5B-93.84B-90.33B
Net Borrowings-1.18B68.9B119.73B77.52B
Other Cashflows From Financing Activities-45.75B-33.06B1.51T-23.12B
Total Cash From Financing Activities-11.55B-46.95B1.66T-35.92B
Effect Of Exchange Rate-29.14B-34.86B9.46B32.73B
Change In Cash-354.37B340.71B-59.11B-10.81B