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Discovery Communications Inc (NAS:DISCK)
Cash Flow from Operations
$1,277 Mil (TTM As of Dec. 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 Dec. 2015, Discovery Communications Inc's Net Income From Continuing Operations was $226 Mil. Its DDA was $87 Mil. Its Change In Working Capital was $-185 Mil. Its cash flow from deferred tax was $-2 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $19 Mil. And its Cash Flow from Others was $480 Mil. In all, Discovery Communications Inc's Cash Flow from Operations for the three months ended in Dec. 2015 was $625 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.

Discovery Communications Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Discovery Communications Inc's Cash Flow from Operations for the quarter that ended in Dec. 2015 is

Discovery Communications Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 63 (Mar. 2015 ) + 331 (Jun. 2015 ) + 258 (Sep. 2015 ) + 625 (Dec. 2015 ) = $1,277 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.

Discovery Communications Inc's net income from continuing operations for the three months ended in Dec. 2015 was $226 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

Discovery Communications Inc's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $87 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.

Discovery Communications Inc's change in working capital for the three months ended in Dec. 2015 was $-185 Mil. It means Discovery Communications Inc's working capital declined by $185 Mil from Sep. 2015 to Dec. 2015 .

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

Discovery Communications Inc's cash flow from deferred tax for the three months ended in Dec. 2015 was $-2 Mil.

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

Discovery Communications Inc's cash flow from discontinued operations for the three months ended in Dec. 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.

Discovery Communications Inc's stock based compensation for the three months ended in Dec. 2015 was $19 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).

Discovery Communications Inc's cash flow from others for the three months ended in Dec. 2015 was $480 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.

Discovery Communications Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations -46-683175646691,1339451,0771,1371,048
CF_DDA 6868232155132965117276329330
ChangeInWorkingCapital 19-15-316-124-1,136-1,142-1,056-1,521-1,585-1,905
CF_DeferredTax 4256190-71140-7083-1812
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00-66228182991541907835
Cash Flow from Others -1016212-20881051,0091,1801,5401,767
Cash Flow from Operations 74575696086681,1001,0991,2851,3181,277

Discovery Communications Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 256290231384287235250289283226
CF_DDA 80868375858681828087
ChangeInWorkingCapital -225-356-409-511-317-348-648-427-645-185
CF_DeferredTax 5-61-35-38-51-57-48-56108-2
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 456119143312223-919
Cash Flow from Others 299335352308383497426420441480
Cash Flow from Operations 46035524123242042563331258625
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