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