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Weatherford International PLC (NYSE:WFT)
Cash Flow from Operations
$706 Mil (TTM As of Dec. 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 three months ended in Dec. 2015, Weatherford International PLC's Net Income From Continuing Operations was $-1,200 Mil. Its DDA was $275 Mil. Its Change In Working Capital was $533 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $21 Mil. And its Cash Flow from Others was $694 Mil. In all, Weatherford International PLC's Cash Flow from Operations for the three months ended in Dec. 2015 was $323 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.

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

Weatherford International PLC's Cash Flow from Operations for the quarter that ended in Dec. 2015 is

Weatherford International PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was -42 (Mar. 2015 ) + 291 (Jun. 2015 ) + 134 (Sep. 2015 ) + 323 (Dec. 2015 ) = $706 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.

Weatherford International PLC's net income from continuing operations for the three months ended in Dec. 2015 was $-1,200 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

Weatherford International PLC's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $275 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.

Weatherford International PLC's change in working capital for the three months ended in Dec. 2015 was $533 Mil. It means Weatherford International PLC's working capital increased by $533 Mil from Sep. 2015 to Dec. 2015 .

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

Weatherford International PLC's cash flow from deferred tax for the three months ended in Dec. 2015 was $0 Mil.

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

Weatherford International PLC's cash flow from discontinued operations for the three months ended in Dec. 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.

Weatherford International PLC's stock based compensation for the three months ended in Dec. 2015 was $21 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).

Weatherford International PLC's cash flow from others for the three months ended in Dec. 2015 was $694 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.

Weatherford International PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 8961,0711,367113-199205-750-314-539-1,951
CF_DDA 4836067329071,0471,1351,2821,4021,3711,200
ChangeInWorkingCapital -359-864-949-516-197-891-322-264-753560
CF_DeferredTax 4329-41-11055149-13-33-66-448
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000110998776665673
Cash Flow from Others 2330-31113231489483728941,272
Cash Flow from Operations 1,0878731,1056141,1288331,2211,229963706

Weatherford International PLC Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 31-264-32-13389-463-107-483-161-1,200
CF_DDA 352363351355327338316311298275
ChangeInWorkingCapital -141250-811-18-173249-334197164533
CF_DeferredTax -7513544000-36000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 18211516131215191821
Cash Flow from Others 1411572721594448104247-185694
Cash Flow from Operations 326662-406435350584-42291134323
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