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Li & Fung Ltd (OTCPK:LFUGF)
Cash Flow from Operations
$638 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 six months ended in Dec. 2014, Li & Fung Ltd's Net Income From Continuing Operations was $627 Mil. Its DDA was $115 Mil. Its Change In Working Capital was $28 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 $-132 Mil. In all, Li & Fung Ltd's Cash Flow from Operations for the six months ended in Dec. 2014 was $638 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. 2014 is calculated as:

Li & Fung Ltd's Cash Flow from Operations for the quarter that ended in Dec. 2014 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. 2014 was $638 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.

Li & Fung Ltd's net income from continuing operations for the six months ended in Dec. 2014 was $627 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. 2014 was $115 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. 2014 was $28 Mil. It means Li & Fung Ltd's working capital increased by $28 Mil from Jun. 2014 to Dec. 2014 .

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. 2014 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. 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.

Li & Fung Ltd's stock based compensation for the six months ended in Dec. 2014 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. 2014 was $-132 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.

Li & Fung Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 0000465596772677714627
CF_DDA 000070159226285110115
ChangeInWorkingCapital 0000305-97-76-609728
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000163319230
Cash Flow from Others 273615154621554-17-318-71-132
Cash Flow from Operations 27361515462871745924586853638

Li & Fung Ltd Semi-Annual Data

Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14
NetIncomeFromContinuingOperations 05960772067707140627
CF_DDA 01590226028501100115
ChangeInWorkingCapital 0-970-76-305-607497-3228
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 033019020300
Cash Flow from Others 15154213-17293-318264-71232-132
Cash Flow from Operations 151745213924-12586338853201638
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