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Brocade Communications Systems Inc (NAS:BRCD)
Cash Flow from Operations
$550 Mil (TTM As of Apr. 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 Apr. 2014, Brocade Communications Systems Inc's Net Income From Continuing Operations was $-14 Mil. Its DDA was $21 Mil. Its Change In Working Capital was $66 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $94 Mil. In all, Brocade Communications Systems Inc's Cash Flow from Operations for the three months ended in Apr. 2014 was $168 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.

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

Brocade Communications Systems Inc's Cash Flow from Operations for the quarter that ended in Apr. 2014 is

Brocade Communications Systems Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2014 was 102.155 (Jul. 2013 ) + 169.769 (Oct. 2013 ) + 109.469 (Jan. 2014 ) + 168.244 (Apr. 2014 ) = $550 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.

Brocade Communications Systems Inc's net income from continuing operations for the three months ended in Apr. 2014 was $-14 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

Brocade Communications Systems Inc's depreciation, depletion and amortization for the three months ended in Apr. 2014 was $21 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.

Brocade Communications Systems Inc's change in working capital for the three months ended in Apr. 2014 was $66 Mil. It means Brocade Communications Systems Inc's working capital increased by $66 Mil from Jan. 2014 to Apr. 2014 .

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

Brocade Communications Systems Inc's cash flow from deferred tax for the three months ended in Apr. 2014 was $0 Mil.

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

Brocade Communications Systems Inc's cash flow from discontinued operations for the three months ended in Apr. 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).

Brocade Communications Systems Inc's cash flow from others for the three months ended in Apr. 2014 was $94 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.

Brocade Communications Systems Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
NetIncomeFromContinuingOperations -32436877167-8111751195209
CF_DDA 574836101120197200206192184
ChangeInWorkingCapital -11735-40290-247-15347112-113
CF_DeferredTax 00000000078
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 18182832-1382481351459293
Cash Flow from Operations 42126167170438116299449591451

Brocade Communications Systems Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
NetIncomeFromContinuingOperations 394354-21471196481-1487
CF_DDA 47474849444645392120
ChangeInWorkingCapital 25588-8419-8335-1466-10
CF_DeferredTax 000780078000
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 281821371021-534948
Cash Flow from Operations 14011321059120102170109168106
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