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GuruFocus has detected 3 Warning Signs with Weatherford International PLC $WFT.
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Weatherford International PLC (NYSE:WFT)
Cash Flow from Operations
$-290 Mil (TTM As of Mar. 2017)

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 Mar. 2017, Weatherford International PLC's Net Income From Continuing Operations was $-443 Mil. Its DDA was $208 Mil. Its Change In Working Capital was $-80 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $24 Mil. And its Cash Flow from Others was $112 Mil. In all, Weatherford International PLC's Cash Flow from Operations for the three months ended in Mar. 2017 was $-179 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.

Weatherford International PLC's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Weatherford International PLC's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

Weatherford International PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was -141 (Jun. 2016 ) + -106 (Sep. 2016 ) + 136 (Dec. 2016 ) + -179 (Mar. 2017 ) = $-290 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.

Weatherford International PLC's net income from continuing operations for the three months ended in Mar. 2017 was $-443 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

Weatherford International PLC's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $208 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.

Weatherford International PLC's change in working capital for the three months ended in Mar. 2017 was $-80 Mil. It means Weatherford International PLC's working capital declined by $80 Mil from Dec. 2016 to Mar. 2017 .

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

Weatherford International PLC's cash flow from deferred tax for the three months ended in Mar. 2017 was $0 Mil.

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

Weatherford International PLC's cash flow from discontinued operations for the three months ended in Mar. 2017 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.

Weatherford International PLC's stock based compensation for the three months ended in Mar. 2017 was $24 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).

Weatherford International PLC's cash flow from others for the three months ended in Mar. 2017 was $112 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.

Weatherford International PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 1,0711,440113-199205-750-314-539-1,951-3,373
CF_DDA 6067329091,0481,1361,2821,4021,3711,200956
ChangeInWorkingCapital -864-949-353-117-755-322-264-753560290
CF_DeferredTax 29-81-11282121-13-33-66-448381
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0011099877666567387
Cash Flow from Others 30-38-60212589483728941,2721,345
Cash Flow from Operations 8731,1056071,1258521,2211,229963706-314

Weatherford International PLC Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations -463-107-483-161-1,200-491-562-1,776-544-443
CF_DDA 338316311298275250249242215208
ChangeInWorkingCapital 249-334197164533-59-11397365-80
CF_DeferredTax 0-36-155-142-11500000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 12151918212117193024
Cash Flow from Others 448104402-43809762681,31270112
Cash Flow from Operations 584-42291134323-203-141-106136-179
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