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Hormel Foods Corp (NYSE:HRL)
Cash Flow from Operations
$679 Mil (TTM As of Jan. 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 Jan. 2015, Hormel Foods Corp's Net Income From Continuing Operations was $172 Mil. Its DDA was $33 Mil. Its Change In Working Capital was $45 Mil. Its cash flow from deferred tax was $1 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $6 Mil. And its Cash Flow from Others was $-11 Mil. In all, Hormel Foods Corp's Cash Flow from Operations for the three months ended in Jan. 2015 was $247 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.

Hormel Foods Corp's Cash Flow from Operations for the fiscal year that ended in Oct. 2014 is calculated as:

Hormel Foods Corp's Cash Flow from Operations for the quarter that ended in Jan. 2015 is

Hormel Foods Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2015 was -39.257 (Apr. 2014 ) + 119.331 (Jul. 2014 ) + 352.513 (Oct. 2014 ) + 246.502 (Jan. 2015 ) = $679 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.

Hormel Foods Corp's net income from continuing operations for the three months ended in Jan. 2015 was $172 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

Hormel Foods Corp's depreciation, depletion and amortization for the three months ended in Jan. 2015 was $33 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.

Hormel Foods Corp's change in working capital for the three months ended in Jan. 2015 was $45 Mil. It means Hormel Foods Corp's working capital increased by $45 Mil from Oct. 2014 to Jan. 2015 .

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

Hormel Foods Corp's cash flow from deferred tax for the three months ended in Jan. 2015 was $1 Mil.

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

Hormel Foods Corp's cash flow from discontinued operations for the three months ended in Jan. 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.

Hormel Foods Corp's stock based compensation for the three months ended in Jan. 2015 was $6 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).

Hormel Foods Corp's cash flow from others for the three months ended in Jan. 2015 was $-11 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.

Hormel Foods Corp Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
NetIncomeFromContinuingOperations 255286302286346400479505530606
CF_DDA 115121127126127126124119125130
ChangeInWorkingCapital 114-67-85-16287-66-103-114-229
CF_DeferredTax -24-27-7-10-0297500
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00014121417171814
Cash Flow from Others -613-617-13-18-34-14-13-13
Cash Flow from Operations 454327332272559486490518638747

Hormel Foods Corp Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
NetIncomeFromContinuingOperations 134131127114158154141139172172
CF_DDA 31303132323232333333
ChangeInWorkingCapital 58-8-481420122-210-5114745
CF_DeferredTax 4-220002001
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 3665156226
Cash Flow from Others 4-14-37-21-10-4-1-11
Cash Flow from Operations 234142116171209314-39119353247
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