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Avago Technologies Ltd (NAS:AVGO)
Cash Flow from Operations
$1,427 Mil (TTM As of Jan. 2015)

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 Jan. 2015, Avago Technologies Ltd's Net Income From Continuing Operations was $351 Mil. Its DDA was $226 Mil. Its Change In Working Capital was $-144 Mil. Its cash flow from deferred tax was $-6 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $49 Mil. And its Cash Flow from Others was $5 Mil. In all, Avago Technologies Ltd's Cash Flow from Operations for the three months ended in Jan. 2015 was $481 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.

Avago Technologies Ltd's Cash Flow from Operations for the fiscal year that ended in Oct. 2014 is calculated as:

Avago Technologies Ltd's Cash Flow from Operations for the quarter that ended in Jan. 2015 is

Avago Technologies Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2015 was 251 (Apr. 2014 ) + 314 (Jul. 2014 ) + 381 (Oct. 2014 ) + 481 (Jan. 2015 ) = $1,427 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.

Avago Technologies Ltd's net income from continuing operations for the three months ended in Jan. 2015 was $351 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

Avago Technologies Ltd's depreciation, depletion and amortization for the three months ended in Jan. 2015 was $226 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.

Avago Technologies Ltd's change in working capital for the three months ended in Jan. 2015 was $-144 Mil. It means Avago Technologies Ltd's working capital declined by $144 Mil from Oct. 2014 to Jan. 2015 .

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

Avago Technologies Ltd's cash flow from deferred tax for the three months ended in Jan. 2015 was $-6 Mil.

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

Avago Technologies Ltd's cash flow from discontinued operations for the three months ended in Jan. 2015 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.

Avago Technologies Ltd's stock based compensation for the three months ended in Jan. 2015 was $49 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).

Avago Technologies Ltd's cash flow from others for the three months ended in Jan. 2015 was $5 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 own currency.

Avago Technologies Ltd Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
NetIncomeFromContinuingOperations 00-15983-44415552563552263
CF_DDA 00176159160159157155187625
ChangeInWorkingCapital 00-3-34-6-99-35-87-91209
CF_DeferredTax 00000000-22-92
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0012151225385377163
Cash Flow from Others 00120-151710149197
Cash Flow from Operations 001462081395107266937221,175

Avago Technologies Ltd Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
NetIncomeFromContinuingOperations 563125113142172134158-164135351
CF_DDA 40414246585761257250226
ChangeInWorkingCapital 2416-73-3816215041-144
CF_DeferredTax 0000-22000-92-6
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 14171820222430555449
Cash Flow from Others -404-22217-2016-75
Cash Flow from Operations 215185191137209229251314381481
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