Ingram Micro (Ingram Micro) Free Cash Flow : $249 Mil (TTM As of Sep. 2016)

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What is Ingram Micro Free Cash Flow?

Ingram Micro's total free cash flow for the months ended in Sep. 2016 was $-196 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Sep. 2016 was $249 Mil.

Ingram Micro's Free Cash Flow per Share for the months ended in Sep. 2016 was $-1.29. Its free cash flow per share for the trailing twelve months (TTM) ended in Sep. 2016 was $1.55.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

Ingram Micro Free Cash Flow Historical Data

The historical data trend for Ingram Micro's Free Cash Flow can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ingram Micro Free Cash Flow Chart

Ingram Micro Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Free Cash Flow

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173.67

-46.58

370.40

-578.75

1,333.04

Ingram Micro Quarterly Data
	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16
Free Cash Flow	Get a 7-Day Free Trial															296.51	466.18	250.85	-272.03	-195.95

Ingram Micro Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Ingram Micro's Free Cash Flow for the fiscal year that ended in Dec. 2015 is calculated as

Free Cash Flow (A: Dec. 2015 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	1455.953	+	-122.918
	=	1,333

Ingram Micro's Free Cash Flow for the quarter that ended in Sep. 2016 is calculated as

Free Cash Flow (Q: Sep. 2016 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-166.199	+	-29.753
	=	-196

Free Cash Flow for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $249 Mil.

Ingram Micro (NYSE:IM) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Sep16, Ingram Micro's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Sep16)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	1.00571429	/	35.66	+	0.0327
	=	6.09 %

Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.

Ingram Micro Free Cash Flow Related Terms

Thank you for viewing the detailed overview of Ingram Micro's Free Cash Flow provided by GuruFocus.com. Please click on the following links to see related term pages.

Ingram Micro (Ingram Micro) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Ingram Micro Inc (NYSE:IM) » Definitions » Free Cash Flow

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Traded in Other Exchanges

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Address

Website

http://www.ingrammicro.com

Ingram Micro Inc is incorporated in 1979 in Delaware. The Company is a wholesale technology distributor, by net sales, and a global leader in supply-chain management and mobile device lifecycle services. It distributes and markets technology and mobility products from companies, such as Acer, Apple, Cisco, Citrix, Hewlett-Packard (HP), IBM, Lenovo, Microsoft, Samsung, Symantec, VMware and many others. As a vital link in the technology value chain, it create sales and profitability opportunities for vendors, resellers and other customers through unique marketing programs; outsourced logistics and mobile device lifecycle solutions; technical support; financial services; product aggregation and distribution; solutions creation and cloud service models. The Company has operations in 39 countries, spanning all global regions: North America (United States and Canada), Europe (Austria, Belgium, Denmark, France, Finland, Germany, Hungary, Italy, the Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom), Asia-Pacific (which includes MEA) (Australia, the People's Republic of China (including Hong Kong), Egypt, India, Indonesia, Israel, Lebanon, Malaysia, New Zealand, Singapore, South Africa, Thailand, Turkey and United Arab Emirates) and Latin America (Brazil, Chile, Colombia, Mexico and Peru). The Company also operates support centers in Argentina, Bulgaria, Costa Rica, India, Philippines and Puerto Rico. Additionally, it serves many other markets where it does not have an in-country presence through its various export sales offices, including its general telesales operations in numerous markets. The Company sells its products and services to a global customer base of more than 200,000 customers in more than 170 countries. The Company distributes and markets technology products internationally from the industry's computer hardware suppliers, mobility hardware suppliers, networking equipment suppliers, software publishers, and other suppliers of computer peripherals, CE, AIDC/POS and physical security products. The Company faces competition in particular sector which includes Avnet and Arrow in components and enterprise products; Westcon in networking and security; D&H Distributing, ADI, and Petra in consumer electronics; ScanSource and Bluestar in AIDC/POS products; and Brightpoint, Brightstar and 20:20 Mobile Group Limited in mobility products.

Executives

Scott A Mcgregor	director	5300 CALIFORNIA AVENUE, IRVINE CA 92617
William David Humes	officer: Chief Financial Officer	INGRAM MICRO INC., 1600 E. ST. ANDREW PLACE, SANTA ANA CA 92705
Wade Oosterman	director	C/O INGRAM MICRO INC., 1600 E. ST. ANDREW PLACE, SANTA ANA CA 92705
Heisz Leslie Stone	director	C/O PUBLIC STORAGE, 701 WESTERN AVENUE, GLENDALE CA 91201
Linda Fayne Levinson	director	C/O JACOBS ENGINEERING GROUP INC, 1111 S ARROYO PKWY, PASADENA CA 91105
Dale R Laurance	director
Howard I Atkins	director	OCCIDENTAL PETROLEUM CORPORATION, 5 GREENWAY PLAZA, STE 110, HOUSTON TX 77046
David A Barnes	director	55 GLENLAKE PARKWAY NE, ATLANTA GA 30328
Carol Mills Baldwin	director	600 TELEPHONE AVENUE, MS#65, ANCHORAGE AK 99503
Alain Monie	director, officer: Director and CEO	WORLDWIDE LEGAL DEPT 1600 E ST, SANTA ANA CA 92705
Paul Read	officer: President & COO	MANPOWERGROUP INC., 100 MANPOWER PLACE, MILWAUKEE WI 53212
Lynn Jolliffe	officer: EVP, Human Resources	INGRAM MICRO INC., 1600 EAST SAINT ANDREW PLACE, SANTA ANA CA 92705
Ernest Park	officer: Sr. EVP, CIO	C/O INGRAM MICRO INC., 1600 E. ST. ANDREW PLACE, SANTA ANA CA 92705
Michael T Smith	director	190 NW SPANISH RIVER BOULEVARD, SUITE 101, BOCA RATON FL 33431
Ingram Orrin H Ii	director	C/O FB FNIANCIAL CORPORATION, 1221 BROADWAY, SUITE 1300, NASHVILLE TN 37203