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Weatherford International PLC (NYSE:WFT)
Cash Flow from Operations
$1,041 Mil (TTM As of Sep. 2014)

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 Sep. 2014, Weatherford International PLC's Net Income From Continuing Operations was $89 Mil. Its DDA was $327 Mil. Its Change In Working Capital was $-173 Mil. Its cash flow from deferred tax was $15 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $92 Mil. In all, Weatherford International PLC's Cash Flow from Operations for the three months ended in Sep. 2014 was $350 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. 2013 is calculated as:

Weatherford International PLC's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Weatherford International PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 662 (Dec. 2013 ) + -406 (Mar. 2014 ) + 435 (Jun. 2014 ) + 350 (Sep. 2014 ) = $1,041 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 Sep. 2014 was $89 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 Sep. 2014 was $327 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 Sep. 2014 was $-173 Mil. It means Weatherford International PLC's working capital declined by $173 Mil from Jun. 2014 to Sep. 2014 .

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 Sep. 2014 was $15 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 Sep. 2014 was $0 Mil.

6. 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 Sep. 2014 was $92 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 3304678961,0711,354280-29278-750-314
CF_DDA 2733464836067329071,0471,1351,2821,402
ChangeInWorkingCapital -18-317-359-864-949-516-197-891-322-264
CF_DeferredTax -16294329-41-11055149-13-33
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -65-2223309542521621,024438
Cash Flow from Operations 5035031,0878731,1056141,1288331,2211,229

Weatherford International PLC Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations -71377-11430-11131-264-32-13389
CF_DDA 309329343346341352363351355327
ChangeInWorkingCapital -226-213398-46895-141250-811-18-173
CF_DeferredTax 61-4-49-3-90-7513544-2815
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 7184212784171591784225992
Cash Flow from Operations 149231705-11252326662-406435350
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