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).

HSBA 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 HSBC Holdings plc (HSBA), the free cash flow value is 116.343B.

All amounts in USD

Operating Cash
Capital Expenditure
Free Cash Flow

HSBC Holdings plc 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).

HSBA Cash Flow Statement History

Following table shows the history of Cash Flow Statements sheet for HSBC Holdings plc (LSE:HSBA).

31 Dec 2022 31 Dec 2021 31 Dec 2020 31 Dec 2019
Net Income 16.04B 13.92B 5.23B 7.38B
Depreciation 2.43B 2.52B 5.2B 3.17B
Change To Netincome 52.38B 19.56B -18.5B 7.34B
Change To Liabilities
Change To Operating Activities 16.82B -15.09B -47.62B -46.09B
Total Cash From Operating Activities 117.63B 8.61B -44.5B -49.42B
Capital Expenditures -1.28B -1.09B -1.45B -1.34B
Investments -25.55B 28.15B -19.68B -32.72B
Total Cashflows From Investing Activities -34.48B 27.54B -22.43B -35.32B
Dividends Paid -6.54B -5.79B -1.33B -9B
Net Borrowings 5.52B -864M -3.54B -4.21B
Other Cashflows From Financing Activities -91.82B 95.11B 226.03B 78.39B
Total Cash From Financing Activities -97.48B 84.91B 222.08B 64.32B
Effect Of Exchange Rate -38.03B -15.35B 19.43B 1.25B
Change In Cash -52.36B 105.71B 174.58B -19.17B
Repurchase Of Stock -2.38B -2.09B -181M -1B