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).

2318 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 Ping An Insurance (Group) Company of China, Ltd. (2318), the free cash flow value is 77.93B.

All amounts in CNY

Operating Cash
90.12B
Capital Expenditure
-12.19B
Free Cash Flow
77.93B

Ping An Insurance (Group) Company of China, Ltd. 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).

2318 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Ping An Insurance (Group) Company of China, Ltd. (HKEX:2318).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income101.62B143.1B149.41B107.4B
Depreciation15.9B15.8B15.63B6.53B
Change To Netincome-58.95B-134.76B-151.5B131.91B
Change To Account Receivables12.85B-9.18B-22.78B-161.05B
Change To Liabilities-9.04B-10.16B-8.1B
Change To Inventory-1.17B2.25B-1.03B-1.03B
Change To Operating Activities17.35B292.36B256.94B126.26B
Total Cash From Operating Activities90.12B312.07B249.44B206.26B
Capital Expenditures-12.19B-9.99B-12.21B-10.66B
Investments-182.1B-641.47B-529.11B-364.23B
Other Cashflows From Investing Activities233.03B225.08B183.63B156.15B
Total Cashflows From Investing Activities27.93B-447.14B-380.16B-240.43B
Dividends Paid-46.94B-43.07B-35.93B-54.92B
Net Borrowings-58.24B315.16B179.38B88.06B
Other Cashflows From Financing Activities-23.15B-6.47B-9.07B1.79B
Total Cash From Financing Activities-136.41B260.64B125.08B31.26B
Effect Of Exchange Rate-3.26B-4.3B1.08B2.26B
Change In Cash-21.62B121.28B-4.56B-640M
Repurchase Of Stock-8.08B-4.98B-9.3B-9.3B