Switch to:
Adobe Systems Inc (NAS:ADBE)
Cash Flow from Operations
$1,150 Mil (TTM As of May. 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 three months ended in May. 2014, Adobe Systems Inc's Net Income From Continuing Operations was $89 Mil. Its DDA was $78 Mil. Its Change In Working Capital was $111 Mil. Its cash flow from deferred tax was $8 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $83 Mil. In all, Adobe Systems Inc's Cash Flow from Operations for the three months ended in May. 2014 was $368 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.

Adobe Systems Inc's Cash Flow from Operations for the fiscal year that ended in Nov. 2013 is calculated as:

Adobe Systems Inc's Cash Flow from Operations for the quarter that ended in May. 2014 is

Adobe Systems Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2014 was 215.525 (Aug. 2013 ) + 314.982 (Nov. 2013 ) + 251.673 (Feb. 2014 ) + 367.536 (May. 2014 ) = $1,150 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.

Adobe Systems Inc's net income from continuing operations for the three months ended in May. 2014 was $89 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

Adobe Systems Inc's depreciation, depletion and amortization for the three months ended in May. 2014 was $78 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.

Adobe Systems Inc's change in working capital for the three months ended in May. 2014 was $111 Mil. It means Adobe Systems Inc's working capital increased by $111 Mil from Feb. 2014 to May. 2014 .

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

Adobe Systems Inc's cash flow from deferred tax for the three months ended in May. 2014 was $8 Mil.

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

Adobe Systems Inc's cash flow from discontinued operations for the three months ended in May. 2014 was $0 Mil.

6. 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).

Adobe Systems Inc's cash flow from others for the three months ended in May. 2014 was $83 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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.

Adobe Systems Inc Annual Data

Nov04Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Nov13
NetIncomeFromContinuingOperations 45060350672487238700833290
CF_DDA 6164308315270282293270300321
ChangeInWorkingCapital 30-16-5472-126183-237810163
CF_DeferredTax 46-7-4584750-172518930
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 96861722702182161,0151,144267348
Cash Flow from Operations 6847309271,4391,2811,1181,1131,5431,5001,152

Adobe Systems Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
NetIncomeFromContinuingOperations 18500222657783654789
CF_DDA 70777479778182817878
ChangeInWorkingCapital -6395-104838636-519247111
CF_DeferredTax 63-524715322-11-38
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 59281270837910279888383
Cash Flow from Operations 314448263474322299216315252368
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)
Free 7-day Trial
FEEDBACK
Email Hide