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Air Products & Chemicals Inc (NYSE:APD)
Cash Flow from Operations
$2,086 Mil (TTM As of Jun. 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 Jun. 2014, Air Products & Chemicals Inc's Net Income From Continuing Operations was $314 Mil. Its DDA was $239 Mil. Its Change In Working Capital was $-57 Mil. Its cash flow from deferred tax was $33 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $30 Mil. In all, Air Products & Chemicals Inc's Cash Flow from Operations for the three months ended in Jun. 2014 was $559 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.

Air Products & Chemicals Inc's Cash Flow from Operations for the fiscal year that ended in Sep. 2013 is calculated as:

Air Products & Chemicals Inc's Cash Flow from Operations for the quarter that ended in Jun. 2014 is

Air Products & Chemicals Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2014 was 501.9 (Sep. 2013 ) + 546.9 (Dec. 2013 ) + 477.8 (Mar. 2014 ) + 559.3 (Jun. 2014 ) = $2,086 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.

Air Products & Chemicals Inc's net income from continuing operations for the three months ended in Jun. 2014 was $314 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

Air Products & Chemicals Inc's depreciation, depletion and amortization for the three months ended in Jun. 2014 was $239 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.

Air Products & Chemicals Inc's change in working capital for the three months ended in Jun. 2014 was $-57 Mil. It means Air Products & Chemicals Inc's working capital declined by $57 Mil from Mar. 2014 to Jun. 2014 .

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

Air Products & Chemicals Inc's cash flow from deferred tax for the three months ended in Jun. 2014 was $33 Mil.

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

Air Products & Chemicals Inc's cash flow from discontinued operations for the three months ended in Jun. 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).

Air Products & Chemicals Inc's cash flow from others for the three months ended in Jun. 2014 was $30 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.

Air Products & Chemicals Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
NetIncomeFromContinuingOperations 6047127231,0369106311,0291,2249991,004
CF_DDA 715728763840869840863874841907
ChangeInWorkingCapital -294-141-153-357-190-47-443-205100-208
CF_DeferredTax 8669-31437-5296186713
Cash Flow from Disc. Op. 0000000079913
Cash Flow from Others -26715-3554-50-24-326-981-176
Cash Flow from Operations 1,0861,3761,3461,4971,6801,3231,5221,7531,7651,553

Air Products & Chemicals Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
NetIncomeFromContinuingOperations 436357137277289288150287284314
CF_DDA 196212220219226230233234229239
ChangeInWorkingCapital -10373139-2-171-7842-24-102-57
CF_DeferredTax 2760-10637-5-24433333
Cash Flow from Disc. Op. 12786145311100
Cash Flow from Others -248-96398-257-25347266430
Cash Flow from Operations 321526488278320453502547478559
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