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 2021 31 Dec 2020 31 Dec 2019 31 Dec 2018
Net Income 101.62B 143.1B 149.41B 107.4B
Depreciation 15.9B 15.8B 15.63B 6.53B
Change To Netincome -58.95B -134.76B -151.5B 131.91B
Change To Account Receivables 12.85B -9.18B -22.78B -161.05B
Change To Liabilities -8.1B
Change To Inventory -1.17B 2.25B -1.03B -1.03B
Change To Operating Activities 17.35B 292.36B 256.94B 126.26B
Total Cash From Operating Activities 90.12B 312.07B 249.44B 206.26B
Capital Expenditures -12.19B -9.99B -12.21B -10.66B
Investments -182.1B -641.47B -529.11B -364.23B
Other Cashflows From Investing Activities 233.03B 225.08B 183.63B 156.15B
Total Cashflows From Investing Activities 27.93B -447.14B -380.16B -240.43B
Dividends Paid -46.94B -43.07B -35.93B -54.92B
Net Borrowings -58.24B 315.16B 179.38B 88.06B
Other Cashflows From Financing Activities -23.15B -6.47B -9.07B 1.79B
Total Cash From Financing Activities -136.41B 260.64B 125.08B 31.26B
Effect Of Exchange Rate -3.26B -4.3B 1.08B 2.26B
Change In Cash -21.62B 121.28B -4.56B -640M
Repurchase Of Stock -8.08B -4.98B -9.3B -9.3B