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).

2007 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 Country Garden Holdings Company Limited (2007), the free cash flow value is 7.729B.

All amounts in CNY

Operating Cash
10.86B
Capital Expenditure
-3.13B
Free Cash Flow
7.729B

Country Garden Holdings 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).

2007 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Country Garden Holdings Company Limited (HKEX:2007).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income26.8B35.02B39.55B34.62B
Depreciation2.12B1.86B1.43B909M
Change To Netincome-20.12B-27.62B-11.47B-13.13B
Change To Account Receivables74.91B36.14B5.75B-96.78B
Change To Liabilities-193.3B14.22B82.83B287.59B
Change To Inventory138.35B-86.05B-100.08B-182.21B
Change To Operating Activities-18.17B4.58B-3.46B-1.76B
Total Cash From Operating Activities10.86B-21.63B14.67B29.38B
Capital Expenditures-3.13B-3B-2.69B-3.23B
Investments-19.58B-6.06B-10.59B-587M
Other Cashflows From Investing Activities4.71B4.06B1.1B2.43B
Total Cashflows From Investing Activities-18.04B-5.92B-19.09B-12.27B
Dividends Paid-2.93B-10.55B-9.47B-9.43B
Net Borrowings-13.59B-39.49B35.3B77.63B
Other Cashflows From Financing Activities3.62B-4.09B-386M2.25B
Total Cash From Financing Activities-12.9B-54.14B25.26B73.83B
Effect Of Exchange Rate-108M-148M-190M315M
Change In Cash-20.2B-81.83B20.64B91.26B