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Hewlett-Packard Co (NYSE:HPQ)
Cash Flow from Operations
$11,475 Mil (TTM As of Apr. 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 Apr. 2014, Hewlett-Packard Co's Net Income From Continuing Operations was $1,273 Mil. Its DDA was $1,087 Mil. Its Change In Working Capital was $256 Mil. Its cash flow from deferred tax was $-99 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $478 Mil. In all, Hewlett-Packard Co's Cash Flow from Operations for the three months ended in Apr. 2014 was $2,995 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.

Hewlett-Packard Co's Cash Flow from Operations for the fiscal year that ended in Oct. 2013 is calculated as:

Hewlett-Packard Co's Cash Flow from Operations for the quarter that ended in Apr. 2014 is

Hewlett-Packard Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2014 was 2674 (Jul. 2013 ) + 2816 (Oct. 2013 ) + 2990 (Jan. 2014 ) + 2995 (Apr. 2014 ) = $11,475 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.

Hewlett-Packard Co's net income from continuing operations for the three months ended in Apr. 2014 was $1,273 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

Hewlett-Packard Co's depreciation, depletion and amortization for the three months ended in Apr. 2014 was $1,087 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.

Hewlett-Packard Co's change in working capital for the three months ended in Apr. 2014 was $256 Mil. It means Hewlett-Packard Co's working capital increased by $256 Mil from Jan. 2014 to Apr. 2014 .

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

Hewlett-Packard Co's cash flow from deferred tax for the three months ended in Apr. 2014 was $-99 Mil.

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

Hewlett-Packard Co's cash flow from discontinued operations for the three months ended in Apr. 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).

Hewlett-Packard Co's cash flow from others for the three months ended in Apr. 2014 was $478 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.

Hewlett-Packard Co Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
NetIncomeFromContinuingOperations 3,4972,3986,1987,2648,3297,6608,7610-12,6505,113
CF_DDA 2,3952,3442,3532,7053,3564,7734,8204,9845,0954,611
ChangeInWorkingCapital -1,5891,5841,350-1,286785-1,065-3,888-1,889-2,77127
CF_DeferredTax 26-1626934151,035379197166-711-410
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 7591,8647595171,0861,6322,0329,37821,6082,267
Cash Flow from Operations 5,0888,02811,3539,61514,59113,37911,92212,63910,57111,608

Hewlett-Packard Co Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
NetIncomeFromContinuingOperations 0757-8,857-6,8541,2321,0771,3901,4141,4251,273
CF_DDA 1,3031,2851,3061,2011,1631,1701,1581,1201,1171,087
ChangeInWorkingCapital -1,768-872-398267-938670-296591158256
CF_DeferredTax -110-45-535-21500-2870-9529-99
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 1,7681,34811,3309,466605667352643281478
Cash Flow from Operations 1,1932,4732,8464,0592,5623,5562,6742,8162,9902,995
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