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).

## 3328 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 Bank of Communications Co., Ltd. (3328), the free cash flow value is -57.722B.

All amounts in CNY

Operating Cash
-34.77B
Capital Expenditure
-22.95B
Free Cash Flow
-57.722B

Bank of Communications Co., Ltd. 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).

## 3328 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Bank of Communications Co., Ltd. (HKEX:3328).

31 Dec 202131 Dec 202031 Dec 201931 Dec 2018
Net Income87.58B78.27B77.28B73.63B
Depreciation14.46B14.45B13.68B9.98B
Change To Netincome8.22B-6.95B-16.41B-38.39B
Change To Liabilities-3.47B-3.56B-1.77B
Change To Operating Activities-141.95B66.85B-155.63B-249.93B
Total Cash From Operating Activities-34.77B149.4B-82.55B-292.78B
Capital Expenditures-22.95B-24.15B-32.38B-30.65B
Investments-146.06B-166.22B-139.35B-151.22B
Other Cashflows From Investing Activities89.49B91.03B86.97B81.67B
Total Cashflows From Investing Activities-75.55B-94.59B-81.81B-100.14B
Dividends Paid-44.5B-40.84B-34.63B-23.85B
Net Borrowings4.87B94.59B81.44B21.51B
Other Cashflows From Financing Activities-564M-162M-81M405.53B
Total Cash From Financing Activities1.31B88.28B86.73B403.19B
Effect Of Exchange Rate-3.79B-3.7B1.87B4.3B
Change In Cash-112.81B139.38B-75.76B14.57B
Repurchase Of Stock-29.15B-17.12B-17.12B-17.12B
Issuance Of Stock41.5B51.8B39.99B39.99B