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Boston Scientific Inc (NYSE:BSX)
Cash Flow from Operations
$1,269 Mil (TTM As of Dec. 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 Dec. 2014, Boston Scientific Inc's Net Income From Continuing Operations was $-119 Mil. Its DDA was $725 Mil. Its Change In Working Capital was $962 Mil. Its cash flow from deferred tax was $-397 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $103 Mil. And its Cash Flow from Others was $-834 Mil. In all, Boston Scientific Inc's Cash Flow from Operations for the three months ended in Dec. 2014 was $440 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.

Boston Scientific Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Boston Scientific Inc's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Boston Scientific Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 198 (Mar. 2014 ) + 285 (Jun. 2014 ) + 346 (Sep. 2014 ) + 440 (Dec. 2014 ) = $1,269 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.

Boston Scientific Inc's net income from continuing operations for the three months ended in Dec. 2014 was $-119 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

Boston Scientific Inc's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $725 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.

Boston Scientific Inc's change in working capital for the three months ended in Dec. 2014 was $962 Mil. It means Boston Scientific Inc's working capital increased by $962 Mil from Sep. 2014 to Dec. 2014 .

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

Boston Scientific Inc's cash flow from deferred tax for the three months ended in Dec. 2014 was $-397 Mil.

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

Boston Scientific Inc's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

Boston Scientific Inc's stock based compensation for the three months ended in Dec. 2014 was $103 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).

Boston Scientific Inc's cash flow from others for the three months ended in Dec. 2014 was $-834 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.

Boston Scientific Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 628-3,577-495-2,036-1,025-1,065441-4,068-121-119
CF_DDA 314781918864834816717683689725
ChangeInWorkingCapital -36732347-77925-1,373-237284183962
CF_DeferredTax 4-420-386-334-64-11046-166-223-397
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00122138144150128108105103
Cash Flow from Others 3244,7387282,661211,907-874,419477-5
Cash Flow from Operations 9031,8459341,2168353251,0081,2601,1101,269

Boston Scientific Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 0-4,068000-121000-119
CF_DDA 0683000689000725
ChangeInWorkingCapital 0284000183000962
CF_DeferredTax 0-166000-223000-397
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 2823000105000103
Cash Flow from Others 2443,613187397251-358198285346-834
Cash Flow from Operations 272369187397251275198285346440
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