Switch to:
Hormel Foods Corp (NYSE:HRL)
Cash Flow from Operations
$955 Mil (TTM As of Apr. 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 three months ended in Apr. 2016, Hormel Foods Corp's Net Income From Continuing Operations was $215 Mil. Its DDA was $32 Mil. Its Change In Working Capital was $-106 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $7 Mil. And its Cash Flow from Others was $-19 Mil. In all, Hormel Foods Corp's Cash Flow from Operations for the three months ended in Apr. 2016 was $130 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. 2015 is calculated as:

Hormel Foods Corp's Cash Flow from Operations for the quarter that ended in Apr. 2016 is

Hormel Foods Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2016 was 244.508 (Jul. 2015 ) + 301.747 (Oct. 2015 ) + 278.691 (Jan. 2016 ) + 130.444 (Apr. 2016 ) = $955 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 Apr. 2016 was $215 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 Apr. 2016 was $32 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 Apr. 2016 was $-106 Mil. It means Hormel Foods Corp's working capital declined by $106 Mil from Jan. 2016 to Apr. 2016 .

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 Apr. 2016 was $0 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 Apr. 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.

Hormel Foods Corp's stock based compensation for the three months ended in Apr. 2016 was $7 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 Apr. 2016 was $-19 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

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
NetIncomeFromContinuingOperations 286302286346400479505530606687
CF_DDA 121127126127126124119125130133
ChangeInWorkingCapital -67-85-16287-66-103-114-229130
CF_DeferredTax -27-7-10-02975100
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 001412141717181416
Cash Flow from Others 13-617-13-18-34-14-14-1326
Cash Flow from Operations 327332272559486490518638747992

Hormel Foods Corp Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
NetIncomeFromContinuingOperations 141139172172180147187235215196
CF_DDA 32333333333334323233
ChangeInWorkingCapital -210-5114745-27496231-106-25
CF_DeferredTax 2001000-200
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 6226721770
Cash Flow from Others -10-4-1-1151317-24-199
Cash Flow from Operations -39119353247199245302279130213
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK