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).

2628 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 Life Insurance Company Limited (2628), the free cash flow value is 280.973B.

All amounts in CNY

Operating Cash
286.45B
Capital Expenditure
-5.47B
Free Cash Flow
280.973B

China Life Insurance 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).

2628 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for China Life Insurance Company Limited (HKEX:2628).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income50.92B50.26B58.29B11.39B
Depreciation4.9B4.75B4.04B2.38B
Change To Netincome255.88B248.44B182.97B90.41B
Change To Account Receivables3.6B-1.55B-8.62B-8.07B
Change To Liabilities-6.74B-3.48B167M
Change To Operating Activities22.03B27.15B40.77B60.2B
Total Cash From Operating Activities286.45B304.02B286.03B147.55B
Capital Expenditures-5.47B-7.47B-11.41B-19.55B
Investments-492.24B-418.14B-346.91B-309.65B
Other Cashflows From Investing Activities174.49B156.44B142.01B125.54B
Total Cashflows From Investing Activities-393.73B-292.8B-247.51B-238.37B
Dividends Paid-26.66B-24.77B-8.25B-15.83B
Net Borrowings115.69B3.75B-40.03B105.56B
Other Cashflows From Financing Activities22.1B22.32B12.2B3.23B
Total Cash From Financing Activities111.14B-7.76B-36.08B92.96B
Effect Of Exchange Rate-71M-144M55M81M
Change In Cash3.79B3.32B2.5B2.22B