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Tesco PLC (OTCPK:TSCDY)
Cash Flow from Operations
$742 Mil (TTM As of Feb. 2015)

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the six months ended in Feb. 2015, Tesco PLC's Net Income From Continuing Operations was $-9,779 Mil. Its DDA was $2,380 Mil. Its Change In Working Capital was $629 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $161 Mil. And its Cash Flow from Others was $7,351 Mil. In all, Tesco PLC's Cash Flow from Operations for the six months ended in Feb. 2015 was $742 Mil.


Definition

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Tesco PLC's Cash Flow from Operations for the fiscal year that ended in Feb. 2015 is calculated as:

Cash Flow from Operations(A: Feb. 2015 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=-9779.14110429+2380.36809816+628.834355828+0
+Cash Flow from Discontinued Operations+Stock Based Compensation+Cash Flow from Others
+0+161.042944785+7351.22699387
=742

Tesco PLC's Cash Flow from Operations for the quarter that ended in Feb. 2015 is

Cash Flow from Operations(Q: Feb. 2015 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=-9779.14110429+2380.36809816+628.834355828+0
+Cash Flow from Discontinued Operations+Stock Based Compensation+Cash Flow from Others
+0+161.042944785+7351.22699387
=742

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Tesco PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2015 was $742 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Tesco PLC's net income from continuing operations for the six months ended in Feb. 2015 was $-9,779 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
• The term “depreciation” is used when discussing man made tangible assets
• The term “depletion” is used when discussing natural tangible assets
• The term “amortization” is used when discussing intangible assets

Tesco PLC's depreciation, depletion and amortization for the six months ended in Feb. 2015 was $2,380 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Tesco PLC's change in working capital for the six months ended in Feb. 2015 was $629 Mil. It means Tesco PLC's working capital increased by $629 Mil from Aug. 2014 to Feb. 2015 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Tesco PLC's cash flow from deferred tax for the six months ended in Feb. 2015 was $0 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Tesco PLC's cash flow from discontinued operations for the six months ended in Feb. 2015 was $0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Tesco PLC's stock based compensation for the six months ended in Feb. 2015 was $161 Mil.

7. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Tesco PLC's cash flow from others for the six months ended in Feb. 2015 was $7,351 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Tesco PLC Annual Data

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
NetIncomeFromContinuingOperations 0000006,3793,1843,740-9,779
CF_DDA 1,4651,7221,9491,7162,1632,2902,3672,4612,5942,380
ChangeInWorkingCapital 308593618561,970394485-401-520629
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 2483633913003773551978278161
Cash Flow from Others 2,5582,9763,8662,8432,9053,844-2,464-935-6197,351
Cash Flow from Operations 4,5795,1206,5685,7147,4146,8826,9644,3925,273742

Tesco PLC Semi-Annual Data

Aug10Feb11Aug11Feb12Aug12Feb13Aug13Feb14Aug14Feb15
NetIncomeFromContinuingOperations 003,0793,4082,8523762,1503,740187-9,779
CF_DDA 1,0991,1581,2031,2051,2281,2521,2282,5941,2342,380
ChangeInWorkingCapital -205605-363836-813399-836-520-319629
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1751741643942404578100161
Cash Flow from Others 1,8011,987-779-1,712-1,354398-817-61937,351
Cash Flow from Operations 2,8703,9243,3033,7761,9562,4661,7715,2731,205742
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