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).

1997 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 Wharf Real Estate Investment Company Limited (1997), the free cash flow value is 7.968B.

All amounts in HKD

Operating Cash
7.97B
Capital Expenditure
-
Free Cash Flow
7.968B

Wharf Real Estate Investment 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).

1997 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Wharf Real Estate Investment Company Limited (HKEX:1997).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income4.39B-7.85B3.93B18.03B
Depreciation330M294M290M292M
Change To Netincome2.44B13.23B6.73B-8.58B
Change To Account Receivables664M-710M60M-108M
Change To Liabilities-2.66B-1.52B2.81B514M
Change To Inventory3B1.47B-1.84B-663M
Change To Operating Activities-193M-79M40M17M
Total Cash From Operating Activities7.97B4.82B12.02B9.5B
Investments591M-7.77B-1.56B375M
Total Cashflows From Investing Activities199M-8.13B-8.06B-213M
Dividends Paid-4.13B-5.19B-6.53B-6.07B
Net Borrowings-4.32B7.82B3.15B-3.37B
Other Cashflows From Financing Activities-210M-44M-301M-127M
Total Cash From Financing Activities-8.66B2.59B-3.68B-9.57B
Effect Of Exchange Rate30M73M-49M-118M
Change In Cash-460M-647M232M-401M