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Li & Fung Ltd (OTCPK:LFUGF)
Cash Flow from Operations
$390 Mil (TTM As of Dec. 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 Dec. 2016, Li & Fung Ltd's Net Income From Continuing Operations was $172 Mil. Its DDA was $16 Mil. Its Change In Working Capital was $-36 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 $86 Mil. In all, Li & Fung Ltd's Cash Flow from Operations for the six months ended in Dec. 2016 was $238 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.

Li & Fung Ltd's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Li & Fung Ltd's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Li & Fung Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was $390 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.

Li & Fung Ltd's net income from continuing operations for the six months ended in Dec. 2016 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

Li & Fung Ltd's depreciation, depletion and amortization for the six months ended in Dec. 2016 was $16 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.

Li & Fung Ltd's change in working capital for the six months ended in Dec. 2016 was $-36 Mil. It means Li & Fung Ltd's working capital declined by $36 Mil from Jun. 2016 to Dec. 2016 .

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

Li & Fung Ltd's cash flow from deferred tax for the six months ended in Dec. 2016 was $0 Mil.

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

Li & Fung Ltd's cash flow from discontinued operations for the six months ended in Dec. 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.

Li & Fung Ltd's stock based compensation for the six months ended in Dec. 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).

Li & Fung Ltd's cash flow from others for the six months ended in Dec. 2016 was $86 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.

Li & Fung Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 425346465596772677714627507307
CF_DDA 3262701592262851101159692
ChangeInWorkingCapital 8528305-97-76-609728-6-60
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0016331923000
Cash Flow from Others -26261554-17-318-71-132-5351
Cash Flow from Operations 515462871745924586853638544390

Li & Fung Ltd Semi-Annual Data

Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16Dec16
NetIncomeFromContinuingOperations 31331016048222434416328687172
CF_DDA 32331517171918171716
ChangeInWorkingCapital -3052457423-3260-1914-24-36
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -521089-7-81519477286
Cash Flow from Operations -12598338515201437180364152238
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