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Amgen Inc (NAS:AMGN)
Cash Flow from Operations
$6,291 Mil (TTM As of Dec. 2013)

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 Dec. 2013, Amgen Inc's Net Income From Continuing Operations was $1,021 Mil. Its DDA was $444 Mil. Its Change In Working Capital was $476 Mil. Its cash flow from deferred tax was $-189 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $83 Mil. In all, Amgen Inc's Cash Flow from Operations for the three months ended in Dec. 2013 was $1,835 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.

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

Amgen Inc's Cash Flow from Operations for the quarter that ended in Dec. 2013 is

Amgen Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 1049 (Mar. 2013 ) + 1600 (Jun. 2013 ) + 1807 (Sep. 2013 ) + 1835 (Dec. 2013 ) = $6,291 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.

Amgen Inc's net income from continuing operations for the three months ended in Dec. 2013 was $1,021 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

Amgen Inc's depreciation, depletion and amortization for the three months ended in Dec. 2013 was $444 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.

Amgen Inc's change in working capital for the three months ended in Dec. 2013 was $476 Mil. It means Amgen Inc's working capital increased by $476 Mil from Sep. 2013 to Dec. 2013 .

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

Amgen Inc's cash flow from deferred tax for the three months ended in Dec. 2013 was $-189 Mil.

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

Amgen Inc's cash flow from discontinued operations for the three months ended in Dec. 2013 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).

Amgen Inc's cash flow from others for the three months ended in Dec. 2013 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.

Amgen Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 2,3633,6742,9503,1664,0524,6054,6273,6834,3455,081
CF_DDA 7348419631,2021,0731,0491,0171,0601,0881,286
ChangeInWorkingCapital -37510463-441427109-301294-45-393
CF_DeferredTax 57-95-540136-13747-167-32828-189
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 9184811,5531,338573526611410466506
Cash Flow from Operations 3,6974,9115,3895,4015,9886,3365,7875,1195,8826,291

Amgen Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
NetIncomeFromContinuingOperations 4542,5131,1841,2661,1077881,4341,2581,3681,021
CF_DDA 265261259269287273277277288444
ChangeInWorkingCapital 112583-613941171-544-716-22067476
CF_DeferredTax 0-32800028000-189
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 138-1,445142-101158267542858483
Cash Flow from Operations 9691,5849722,3751,7238121,0491,6001,8071,835
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