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).

2319 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 China Mengniu Dairy Company Limited (2319), the free cash flow value is 1.439875B.

All amounts in CNY

Operating Cash
Capital Expenditure
Free Cash Flow

China Mengniu Dairy 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).

2319 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for China Mengniu Dairy Company Limited (HKEX:2319).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income5.03B3.53B4.11B3.04B
Change To Netincome-1.34B-1.28B-658.3M-155M
Change To Account Receivables-1.11B478.44M-1.18B-95.7M
Change To Liabilities584.71M1.13B1.24B111.13M
Change To Inventory-615.59M-515.1M-1.81B-719.92M
Change To Operating Activities2.6B-122.18M2.35B2.34B
Total Cash From Operating Activities7.54B5.35B6.31B6.36B
Capital Expenditures-6.1B-4.14B-4.61B-3.41B
Other Cashflows From Investing Activities1.48B737.73M1.11B1.09B
Total Cashflows From Investing Activities-15.44B4.82B-17.53B-4.23B
Dividends Paid-1.07B-706.66M-708.97M-482.83M
Net Borrowings7.71B-4.11B11.53B-382.54M
Other Cashflows From Financing Activities39.33M-6.26M-328.85M-39.44M
Total Cash From Financing Activities6.77B-4.57B10.61B-900.3M
Effect Of Exchange Rate-10.86M-171.56M35.91M9.56M
Change In Cash-1.13B5.43B-572.38M1.24B
Issuance Of Stock98.83M256.51M124.44M4.5M