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).

3988 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 China Limited (3988), the free cash flow value is -413.712B.

All amounts in CNY

Operating Cash
-383.54B
Capital Expenditure
-30.17B
Free Cash Flow
-413.712B

Bank of China 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).

3988 Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for Bank of China Limited (HKEX:3988).

31 Dec 202131 Mar 202131 Dec 202031 Mar 2020
Net Income216.56B216.56B192.87B192.87B
Depreciation28.79B28.79B27.51B27.51B
Change To Netincome-9.61B-9.61B-12.01B-12.01B
Change To Liabilities
Change To Operating Activities-619.28B-619.28B-1.18T-1.18T
Total Cash From Operating Activities-383.54B-383.54B-970.97B-970.97B
Capital Expenditures-30.17B-30.17B-39.62B-39.62B
Investments-525.02B-525.02B-122.98B-122.98B
Other Cashflows From Investing Activities152.47B152.47B153.02B153.02B
Total Cashflows From Investing Activities-395.56B-395.56B-17.07B-17.07B
Dividends Paid-70.22B-70.22B-65.95B-65.95B
Net Borrowings136.24B136.24B150.99B150.99B
Other Cashflows From Financing Activities1.19T1.19T1.01T1.01T
Total Cash From Financing Activities1.3T1.3T1.17T1.17T
Effect Of Exchange Rate-41.28B-41.28B-33.6B-33.6B
Change In Cash480.76B480.76B148.98B148.98B
Issuance Of Stock69.98B69.98B89.98B109.56B