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GlaxoSmithKline PLC (NYSE:GSK)
Cash Flow from Operations
$9,808 Mil (TTM As of Jun. 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 Jun. 2014, GlaxoSmithKline PLC's Net Income From Continuing Operations was $1,198 Mil. Its DDA was $640 Mil. Its Change In Working Capital was $-558 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $27 Mil. In all, GlaxoSmithKline PLC's Cash Flow from Operations for the three months ended in Jun. 2014 was $1,307 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.

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

Cash Flow from Operations(A: Dec. 2013 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=9271.82866557+2329.4892916+92.2570016474+1678.74794069
+Cash Flow from Discontinued Operations+Cash Flow from Others
+0+-1474.4645799
=11,898

GlaxoSmithKline PLC's Cash Flow from Operations for the quarter that ended in Jun. 2014 is

Cash Flow from Operations(Q: Jun. 2014 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=1197.95221843+639.931740614+-558.020477816+0
+Cash Flow from Discontinued Operations+Cash Flow from Others
+0+27.3037542662
=1,307

GlaxoSmithKline PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2014 was 3344.60547504 (Sep. 2013 ) + 3602.96540362 (Dec. 2013 ) + 1552.7638191 (Mar. 2014 ) + 1307.16723549 (Jun. 2014 ) = $9,808 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.

GlaxoSmithKline PLC's net income from continuing operations for the three months ended in Jun. 2014 was $1,198 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

GlaxoSmithKline PLC's depreciation, depletion and amortization for the three months ended in Jun. 2014 was $640 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.

GlaxoSmithKline PLC's change in working capital for the three months ended in Jun. 2014 was $-558 Mil. It means GlaxoSmithKline PLC's working capital declined by $558 Mil from Mar. 2014 to Jun. 2014 .

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

GlaxoSmithKline PLC's cash flow from deferred tax for the three months ended in Jun. 2014 was $0 Mil.

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

GlaxoSmithKline PLC's cash flow from discontinued operations for the three months ended in Jun. 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).

GlaxoSmithKline PLC's cash flow from others for the three months ended in Jun. 2014 was $27 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.

GlaxoSmithKline PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 7,5578,52210,77710,4636,8099,1582,9238,4757,5789,272
CF_DDA 1,6141,5991,8792,0141,7792,5232,6482,2102,3082,329
ChangeInWorkingCapital -857-551-1,457-1,667689-2444,380-2,750-3,88092
CF_DeferredTax 000000-2,893-2,272-2,6731,679
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 975973-2,6571,3291,1341,2293,6624,0423,655-1,474
Cash Flow from Operations 9,28910,5438,54112,14010,41212,66710,7219,7056,98911,898

GlaxoSmithKline PLC Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
NetIncomeFromContinuingOperations 2,1972,0331,8957,5781,5761,6451,6264,1271,2041,198
CF_DDA 3843854311,1028568291,177-695960640
ChangeInWorkingCapital -1,384131-2,920268-974153203766-807-558
CF_DeferredTax 000-2,6730001,67900
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 422161130-3,219452-30338-2,27319627
Cash Flow from Operations 1,6192,710-4633,0581,9102,5963,3453,6031,5531,307
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