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Analog Devices Inc (NAS:ADI)
Cash Flow from Operations
$1,281 Mil (TTM As of Oct. 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 Oct. 2016, Analog Devices Inc's Net Income From Continuing Operations was $296 Mil. Its DDA was $54 Mil. Its Change In Working Capital was $100 Mil. Its cash flow from deferred tax was $3 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $15 Mil. And its Cash Flow from Others was $19 Mil. In all, Analog Devices Inc's Cash Flow from Operations for the six months ended in Oct. 2016 was $487 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.

Analog Devices Inc's Cash Flow from Operations for the fiscal year that ended in Oct. 2016 is calculated as:

Analog Devices Inc's Cash Flow from Operations for the quarter that ended in Oct. 2016 is

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Analog Devices Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2016 was $1,281 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.

Analog Devices Inc's net income from continuing operations for the six months ended in Oct. 2016 was $296 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

Analog Devices Inc's depreciation, depletion and amortization for the six months ended in Oct. 2016 was $54 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.

Analog Devices Inc's change in working capital for the six months ended in Oct. 2016 was $100 Mil. It means Analog Devices Inc's working capital increased by $100 Mil from Jul. 2016 to Oct. 2016 .

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

Analog Devices Inc's cash flow from deferred tax for the six months ended in Oct. 2016 was $3 Mil.

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

Analog Devices Inc's cash flow from discontinued operations for the six months ended in Oct. 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.

Analog Devices Inc's stock based compensation for the six months ended in Oct. 2016 was $15 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).

Analog Devices Inc's cash flow from others for the six months ended in Oct. 2016 was $19 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.

Analog Devices Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
NetIncomeFromContinuingOperations 497786247711867651673629697862
CF_DDA 155153140121118110110142222210
ChangeInWorkingCapital 147-43-33115-8926181145-10120
CF_DeferredTax -3-1112-102-10-18-78-528
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 004952525457516963
Cash Flow from Others 25-216172-51-16-92-18-1817
Cash Flow from Operations 8206694329919018159128729081,281

Analog Devices Inc Semi-Annual Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
NetIncomeFromContinuingOperations 18110917920521696165171230296
CF_DDA 30575757585152525354
ChangeInWorkingCapital 4151-8381-7466-784-56100
CF_DeferredTax -6-69-3-6-17-26-81123
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 13152016161616161715
Cash Flow from Others -8-0-1-9-3-53-3-219
Cash Flow from Operations 213262169344197198220320254487
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