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Cisco Systems Inc (NAS:CSCO)
Cash Flow from Operations
$12,602 Mil (TTM As of Jan. 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 Jan. 2014, Cisco Systems Inc's Net Income From Continuing Operations was $1,429 Mil. Its DDA was $612 Mil. Its Change In Working Capital was $681 Mil. Its cash flow from deferred tax was $-156 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $307 Mil. In all, Cisco Systems Inc's Cash Flow from Operations for the three months ended in Jan. 2014 was $2,873 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.

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

Cisco Systems Inc's Cash Flow from Operations for the quarter that ended in Jan. 2014 is

Cisco Systems Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2014 was 3094 (Apr. 2013 ) + 3986 (Jul. 2013 ) + 2649 (Oct. 2013 ) + 2873 (Jan. 2014 ) = $12,602 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.

Cisco Systems Inc's net income from continuing operations for the three months ended in Jan. 2014 was $1,429 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

Cisco Systems Inc's depreciation, depletion and amortization for the three months ended in Jan. 2014 was $612 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.

Cisco Systems Inc's change in working capital for the three months ended in Jan. 2014 was $681 Mil. It means Cisco Systems Inc's working capital increased by $681 Mil from Oct. 2013 to Jan. 2014 .

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

Cisco Systems Inc's cash flow from deferred tax for the three months ended in Jan. 2014 was $-156 Mil.

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

Cisco Systems Inc's cash flow from discontinued operations for the three months ended in Jan. 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).

Cisco Systems Inc's cash flow from others for the three months ended in Jan. 2014 was $307 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.

Cisco Systems Inc Annual Data

Jul04Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13
NetIncomeFromContinuingOperations 4,4015,7415,5807,3338,0526,1347,7676,4908,0419,983
CF_DDA 1,4431,0091,2931,4131,7441,7682,0302,4862,6022,351
ChangeInWorkingCapital -4514114802,0562,4321,163-274-165-198-484
CF_DeferredTax 55255-343-622-772-574-477-157-314-37
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 1,176352889-766331,4061,1271,4251,3601,081
Cash Flow from Operations 7,1217,5687,89910,10412,0899,89710,17310,07911,49112,894

Cisco Systems Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
NetIncomeFromContinuingOperations 1,7772,1822,1651,9172,0925,2352,4782,2701,9961,429
CF_DDA 621564631786615611537591591612
ChangeInWorkingCapital -46834-160396-687-685-1201,030-237681
CF_DeferredTax 109-8046-38913513-100-85130-156
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 294401287378310-1,825299180169307
Cash Flow from Operations 2,3333,1012,9693,0882,4653,3493,0943,9862,6492,873
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