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Chicago Bridge & Iron Company (NYSE:CBI)
Cash Flow from Operations
$444 Mil (TTM As of Jun. 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 Jun. 2015, Chicago Bridge & Iron Company's Net Income From Continuing Operations was $186 Mil. Its DDA was $42 Mil. Its Change In Working Capital was $-185 Mil. Its cash flow from deferred tax was $50 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $7 Mil. And its Cash Flow from Others was $-5 Mil. In all, Chicago Bridge & Iron Company's Cash Flow from Operations for the three months ended in Jun. 2015 was $95 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.

Chicago Bridge & Iron Company's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Chicago Bridge & Iron Company's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Chicago Bridge & Iron Company Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 25.07 (Sep. 2014 ) + 613.34 (Dec. 2014 ) + -289.871 (Mar. 2015 ) + 95.167 (Jun. 2015 ) = $444 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.

Chicago Bridge & Iron Company's net income from continuing operations for the three months ended in Jun. 2015 was $186 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

Chicago Bridge & Iron Company's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $42 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.

Chicago Bridge & Iron Company's change in working capital for the three months ended in Jun. 2015 was $-185 Mil. It means Chicago Bridge & Iron Company's working capital declined by $185 Mil from Mar. 2015 to Jun. 2015 .

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

Chicago Bridge & Iron Company's cash flow from deferred tax for the three months ended in Jun. 2015 was $50 Mil.

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

Chicago Bridge & Iron Company's cash flow from discontinued operations for the three months ended in Jun. 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.

Chicago Bridge & Iron Company's stock based compensation for the three months ended in Jun. 2015 was $7 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).

Chicago Bridge & Iron Company's cash flow from others for the three months ended in Jun. 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.

Chicago Bridge & Iron Company Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 16117166-15180212255317513636
CF_DDA 1844407880737066180181
ChangeInWorkingCapital 131340212249-1847-252-878-724
CF_DeferredTax 0019-42-810306349139
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 001719293135416366
Cash Flow from Others -0-25-7-38-40-19-25-33-40-34
Cash Flow from Operations 16547644626249288413203-113264

Chicago Bridge & Iron Company Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 43120133217103167184182157186
CF_DDA 29515249464445464442
ChangeInWorkingCapital -473-243-81-80-327-473-240316-577-185
CF_DeferredTax 657613-10673234665150
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 38771241879317
Cash Flow from Others -141-17-11-15-7-5-74-5
Cash Flow from Operations -3121110781-146-22925613-29095
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