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Honda Motor Co Ltd (NYSE:HMC)
Cash Flow from Operations
$12,317 Mil (TTM As of Sep. 2016)

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 Sep. 2016, Honda Motor Co Ltd's Net Income From Continuing Operations was $1,884 Mil. Its DDA was $1,582 Mil. Its Change In Working Capital was $-1,804 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $508 Mil. In all, Honda Motor Co Ltd's Cash Flow from Operations for the six months ended in Sep. 2016 was $2,169 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.

Honda Motor Co Ltd's Cash Flow from Operations for the fiscal year that ended in Mar. 2016 is calculated as:

Honda Motor Co Ltd's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Honda Motor Co Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was $12,317 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Honda Motor Co Ltd's net income from continuing operations for the six months ended in Sep. 2016 was $1,884 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

Honda Motor Co Ltd's depreciation, depletion and amortization for the six months ended in Sep. 2016 was $1,582 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.

Honda Motor Co Ltd's change in working capital for the six months ended in Sep. 2016 was $-1,804 Mil. It means Honda Motor Co Ltd's working capital declined by $1,804 Mil from Jun. 2016 to Sep. 2016 .

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

Honda Motor Co Ltd's cash flow from deferred tax for the six months ended in Sep. 2016 was $0 Mil.

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

Honda Motor Co Ltd's cash flow from discontinued operations for the six months ended in Sep. 2016 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.

Honda Motor Co Ltd's stock based compensation for the six months ended in Sep. 2016 was $0 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).

Honda Motor Co Ltd's cash flow from others for the six months ended in Sep. 2016 was $508 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 local exchange's currency.

Honda Motor Co Ltd Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
NetIncomeFromContinuingOperations 5,0525,9381,5423,1156,9012,6934,1435,9484,6603,598
CF_DDA 3,1685,1306,5166,9417,2196,7286,2315,7475,1935,851
ChangeInWorkingCapital -928-1,109-5,5235,742-1,512-345-2,328-7,202-1,1352,313
CF_DeferredTax -1413104276241,59460256244400
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 564884958600-772-444-158-548-243555
Cash Flow from Operations 7,71511,1523,92117,02213,4319,2358,4494,3888,47612,317

Honda Motor Co Ltd Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 1,6371,2301,4137751,6481,1851,144-6991,8021,884
CF_DDA 1,4421,3721,3491,4091,3011,3741,3791,4781,5861,582
ChangeInWorkingCapital -1,756-278-1,2511,841-957-1322,552-2,159-1,804
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -20-289246-212508-155-310498398508
Cash Flow from Operations 1,3042,0351,7563,8133,3622,4112,0813,8281,6272,169
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