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F5 Networks Inc (NAS:FFIV)
Cash Flow from Operations
$712 Mil (TTM As of Sep. 2016)

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. 2016, F5 Networks Inc's Net Income From Continuing Operations was $109 Mil. Its DDA was $14 Mil. Its Change In Working Capital was $47 Mil. Its cash flow from deferred tax was $-6 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $38 Mil. And its Cash Flow from Others was $1 Mil. In all, F5 Networks Inc's Cash Flow from Operations for the three months ended in Sep. 2016 was $204 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.

F5 Networks Inc's Cash Flow from Operations for the fiscal year that ended in Sep. 2016 is calculated as:

F5 Networks Inc's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

F5 Networks Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 203.871 (Dec. 2015 ) + 133.118 (Mar. 2016 ) + 170.476 (Jun. 2016 ) + 204.07 (Sep. 2016 ) = $712 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

F5 Networks Inc's net income from continuing operations for the three months ended in Sep. 2016 was $109 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

F5 Networks Inc's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $14 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.

F5 Networks Inc's change in working capital for the three months ended in Sep. 2016 was $47 Mil. It means F5 Networks Inc's working capital increased by $47 Mil from Jun. 2016 to Sep. 2016 .

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

F5 Networks Inc's cash flow from deferred tax for the three months ended in Sep. 2016 was $-6 Mil.

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

F5 Networks Inc's cash flow from discontinued operations for the three months ended in Sep. 2016 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.

F5 Networks Inc's stock based compensation for the three months ended in Sep. 2016 was $38 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).

F5 Networks Inc's cash flow from others for the three months ended in Sep. 2016 was $1 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 local exchange's currency.

F5 Networks Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
NetIncomeFromContinuingOperations 777492151241275277311365366
CF_DDA 16242624213540465357
ChangeInWorkingCapital 1438315960927765132127
CF_DeferredTax 6-6-684-40-3-133
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 06156719095104127146157
Cash Flow from Others 57331121322
Cash Flow from Operations 170194202314417495500549685712

F5 Networks Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 799489869397907592109
CF_DDA 11121313131314141414
ChangeInWorkingCapital 1637537343858-22447
CF_DeferredTax -110-1-4-7432-6
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 32253137374238423838
Cash Flow from Others 0101-010001
Cash Flow from Operations 138170186142173183204133170204
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