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Westlake Chemical Corp (NYSE:WLK)
Cash Flow from Operations
$1,032 Mil (TTM As of Dec. 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 Dec. 2014, Westlake Chemical Corp's Net Income From Continuing Operations was $187 Mil. Its DDA was $60 Mil. Its Change In Working Capital was $-30 Mil. Its cash flow from deferred tax was $25 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $2 Mil. And its Cash Flow from Others was $12 Mil. In all, Westlake Chemical Corp's Cash Flow from Operations for the three months ended in Dec. 2014 was $256 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.

Westlake Chemical Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Westlake Chemical Corp's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Westlake Chemical Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 212.505 (Mar. 2014 ) + 219.737 (Jun. 2014 ) + 343.882 (Sep. 2014 ) + 256.252 (Dec. 2014 ) = $1,032 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.

Westlake Chemical Corp's net income from continuing operations for the three months ended in Dec. 2014 was $187 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

Westlake Chemical Corp's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $60 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.

Westlake Chemical Corp's change in working capital for the three months ended in Dec. 2014 was $-30 Mil. It means Westlake Chemical Corp's working capital declined by $30 Mil from Sep. 2014 to Dec. 2014 .

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

Westlake Chemical Corp's cash flow from deferred tax for the three months ended in Dec. 2014 was $25 Mil.

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

Westlake Chemical Corp's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

Westlake Chemical Corp's stock based compensation for the three months ended in Dec. 2014 was $2 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).

Westlake Chemical Corp's cash flow from others for the three months ended in Dec. 2014 was $12 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.

Westlake Chemical Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 227195115-3053221259386610685
CF_DDA 8387104112123129131145158208
ChangeInWorkingCapital -40-64-1639321-86-44100-12365
CF_DeferredTax 46145-14311414-69459
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0034666679
Cash Flow from Others 36-1212-1-4-1876
Cash Flow from Operations 318237621862362833626127531,032

Westlake Chemical Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 8795123146170171158169170187
CF_DDA 38353540414246495460
ChangeInWorkingCapital 51-2-73-8656-211-11105-30
CF_DeferredTax -2-10293123108111525
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 2122222222
Cash Flow from Others 1-1-1611-3-1-312
Cash Flow from Operations 177119116139292205213220344256
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