Switch to:
Eaton Corp PLC (NYSE:ETN)
Cash Flow from Operations
$2,573 Mil (TTM As of Sep. 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 Sep. 2015, Eaton Corp PLC's Net Income From Continuing Operations was $445 Mil. Its DDA was $232 Mil. Its Change In Working Capital was $322 Mil. Its cash flow from deferred tax was $-72 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $46 Mil. In all, Eaton Corp PLC's Cash Flow from Operations for the three months ended in Sep. 2015 was $973 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.

Eaton Corp PLC's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Eaton Corp PLC's Cash Flow from Operations for the quarter that ended in Sep. 2015 is

Eaton Corp PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 944 (Dec. 2014 ) + 77 (Mar. 2015 ) + 579 (Jun. 2015 ) + 973 (Sep. 2015 ) = $2,573 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.

Eaton Corp PLC's net income from continuing operations for the three months ended in Sep. 2015 was $445 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

Eaton Corp PLC's depreciation, depletion and amortization for the three months ended in Sep. 2015 was $232 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.

Eaton Corp PLC's change in working capital for the three months ended in Sep. 2015 was $322 Mil. It means Eaton Corp PLC's working capital increased by $322 Mil from Jun. 2015 to Sep. 2015 .

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

Eaton Corp PLC's cash flow from deferred tax for the three months ended in Sep. 2015 was $-72 Mil.

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

Eaton Corp PLC's cash flow from discontinued operations for the three months ended in Sep. 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.

Eaton Corp PLC's stock based compensation for the three months ended in Sep. 2015 was $0 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).

Eaton Corp PLC's cash flow from others for the three months ended in Sep. 2015 was $46 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.

Eaton Corp PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 9509941,0703859371,3521,2201,8731,8030
CF_DDA 4344695715735515565989979830
ChangeInWorkingCapital 16-144-199659-34-17463-324-3320
CF_DeferredTax 37-51-225-19126-113-155-311-3820
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -6-107224-18-198-373-6250-1940
Cash Flow from Operations 1,4311,1611,4411,4081,2821,2481,6642,2851,8780

Eaton Corp PLC Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 5144824411726055854675354450
CF_DDA 2502572492502442402262342320
ChangeInWorkingCapital -166489-370486-50759-372-1343220
CF_DeferredTax 18-359-24-232-30-9614-43-720
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 883-284-43-23156-258-13460
Cash Flow from Operations 70487212633289944775799730
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK