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Google Inc (NAS:GOOG)
Cash Flow from Operations
$21,250 Mil (TTM As of Sep. 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 Sep. 2014, Google Inc's Net Income From Continuing Operations was $2,813 Mil. Its DDA was $1,547 Mil. Its Change In Working Capital was $825 Mil. Its cash flow from deferred tax was $-360 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $1,290 Mil. And its Cash Flow from Others was $-121 Mil. In all, Google Inc's Cash Flow from Operations for the three months ended in Sep. 2014 was $5,994 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.

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

Google Inc's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Google Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 5238 (Dec. 2013 ) + 4391 (Mar. 2014 ) + 5627 (Jun. 2014 ) + 5994 (Sep. 2014 ) = $21,250 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.

Google Inc's net income from continuing operations for the three months ended in Sep. 2014 was $2,813 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

Google Inc's depreciation, depletion and amortization for the three months ended in Sep. 2014 was $1,547 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.

Google Inc's change in working capital for the three months ended in Sep. 2014 was $825 Mil. It means Google Inc's working capital increased by $825 Mil from Jun. 2014 to Sep. 2014 .

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

Google Inc's cash flow from deferred tax for the three months ended in Sep. 2014 was $-360 Mil.

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

Google Inc's cash flow from discontinued operations for the three months ended in Sep. 2014 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.

Google Inc's stock based compensation for the three months ended in Sep. 2014 was $1,290 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).

Google Inc's cash flow from others for the three months ended in Sep. 2014 was $-121 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.

Google Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 1,4653,0774,2044,2276,5208,5059,73710,73712,92014,444
CF_DDA 2945729681,5001,5241,3961,8512,9623,9394,979
ChangeInWorkingCapital 23141319327486-99630898-31364
CF_DeferredTax 21-98-164-225-2689343-266-437-104
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 008691,1201,1641,3761,9742,6923,3434,279
Cash Flow from Others 656-111-419904-110-10630-404-1,075-1,586
Cash Flow from Operations 2,4593,5815,7757,8539,31611,08114,56516,61918,65922,376

Google Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 2,1762,8863,3463,2282,9703,3763,4523,4222,8134,757
CF_DDA 8289538991,0309741,0361,0861,0791,5471,267
ChangeInWorkingCapital 432482-1,465422414598-789670825-342
CF_DeferredTax -168-28920263-140-562144-282-360394
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 7627167088478869028879151,2901,187
Cash Flow from Others -26-79-57-885-21-112-389-177-121-899
Cash Flow from Operations 4,0044,6693,6334,7055,0835,2384,3915,6275,9946,364
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