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).

2388 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 BOC Hong Kong (Holdings) Limited (2388), the free cash flow value is -219.397B.

All amounts in HKD

Operating Cash
-219.01B
Capital Expenditure
-384M
Free Cash Flow
-219.397B

BOC Hong Kong (Holdings) Limited 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).

2388 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for BOC Hong Kong (Holdings) Limited (HKEX:2388).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income24.35B27.86B33.57B32.07B
Depreciation3.04B3.04B2.88B2.07B
Change To Netincome-3.59B-13.04B11.54B18.86B
Change To Liabilities
Change To Operating Activities-244.64B-129.94B-304.43B-88.72B
Total Cash From Operating Activities-219.01B-90.42B-273.09B-5.93B
Capital Expenditures-384M-1.32B-1.45B-1.18B
Investments57M-3M-1.1B4M
Total Cashflows From Investing Activities-1.33B-1.32B-3.31B-3.35B
Dividends Paid-14.51B-16.59B-16.91B-13.78B
Net Borrowings-716M-13.34B-644M-7.21B
Other Cashflows From Financing Activities306.81B232.49B3.48B270.97B
Total Cash From Financing Activities291.59B202.57B-14.08B273.46B
Effect Of Exchange Rate4.61B13.58B-4B-20.2B
Change In Cash75.86B124.41B-294.47B243.99B