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).

2018 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 AAC Technologies Holdings Inc. (2018), the free cash flow value is -1.146249B.

All amounts in CNY

Operating Cash
2.2B
Capital Expenditure
-3.34B
Free Cash Flow
-1.146249B

AAC Technologies Holdings Inc. has a negative 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).

2018 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for AAC Technologies Holdings Inc. (HKEX:2018).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income1.32B1.51B2.22B3.8B
Depreciation2.69B2.47B2.16B1.74B
Change To Netincome301.13M135.65M166.26M74.3M
Change To Account Receivables-795.51M160.06M-1.08B2.83B
Change To Liabilities409.16M-183.98M716.79M-1.75B
Change To Inventory-1.73B-469.62M-378.97M57.4M
Change To Operating Activities-9.64M-33.73M9.78M12.24M
Total Cash From Operating Activities2.2B3.59B3.84B6.79B
Capital Expenditures-3.34B-4.25B-2.81B-4.03B
Investments-585.65M700.13M-680.97M580.53M
Other Cashflows From Investing Activities-129.56M144.18M160.97M-9.78M
Total Cashflows From Investing Activities-4.25B-3.26B-3.39B-3.6B
Dividends Paid-403.25M-106.81M-1.53B-2.18B
Net Borrowings1.46B205.5M2.31B-555.2M
Other Cashflows From Financing Activities-228.55M2.48B-246.28M-232.18M
Total Cash From Financing Activities612.91M2.58B255M-3.25B
Effect Of Exchange Rate-52.12M-186.73M51.49M81.49M
Change In Cash-1.49B2.73B755.4M24.87M
Repurchase Of Stock-211.21M-211.21M-277.46M-277.86M