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Microsoft Corp (NAS:MSFT)
Cash Flow from Operations
$29,080 Mil (TTM As of Jun. 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 Jun. 2015, Microsoft Corp's Net Income From Continuing Operations was $-3,195 Mil. Its DDA was $1,493 Mil. Its Change In Working Capital was $-3,807 Mil. Its cash flow from deferred tax was $-644 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $654 Mil. And its Cash Flow from Others was $12,315 Mil. In all, Microsoft Corp's Cash Flow from Operations for the three months ended in Jun. 2015 was $6,816 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.

Microsoft Corp's Cash Flow from Operations for the fiscal year that ended in Jun. 2015 is calculated as:

Microsoft Corp's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Microsoft Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 8354 (Sep. 2014 ) + 4340 (Dec. 2014 ) + 9570 (Mar. 2015 ) + 6816 (Jun. 2015 ) = $29,080 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.

Microsoft Corp's net income from continuing operations for the three months ended in Jun. 2015 was $-3,195 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

Microsoft Corp's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $1,493 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.

Microsoft Corp's change in working capital for the three months ended in Jun. 2015 was $-3,807 Mil. It means Microsoft Corp's working capital declined by $3,807 Mil from Mar. 2015 to Jun. 2015 .

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

Microsoft Corp's cash flow from deferred tax for the three months ended in Jun. 2015 was $-644 Mil.

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

Microsoft Corp's cash flow from discontinued operations for the three months ended in Jun. 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.

Microsoft Corp's stock based compensation for the three months ended in Jun. 2015 was $654 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).

Microsoft Corp's cash flow from others for the three months ended in Jun. 2015 was $12,315 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.

Microsoft Corp Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
NetIncomeFromContinuingOperations 12,59914,06517,68114,56918,76023,15016,97821,86322,07412,193
CF_DDA 9031,4402,0562,5622,6732,7662,9673,7555,2125,957
ChangeInWorkingCapital -2,397-961-2,435-178661-3,003-174-1,3756241,513
CF_DeferredTax 219421935762-2202954-19-331224
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 01,5501,4791,7081,8912,1662,2442,4062,4462,574
Cash Flow from Others 3,0801,2811,896-3863081,9138,6572,2032,2066,619
Cash Flow from Operations 14,40417,79621,61219,03724,07326,99431,62628,83332,23129,080

Microsoft Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 6,0554,9655,2446,5585,6604,6124,5405,8634,985-3,195
CF_DDA 1,0539839541,2611,2551,7421,4281,5211,5151,493
ChangeInWorkingCapital 3,704-4,8573,321-3,1152,798-2,3804,507-2,4953,308-3,807
CF_DeferredTax 226-423404-176-190-369301314253-644
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 599601635591602618646633641654
Cash Flow from Others -1,9714,634-2,353-706-265,291-3,068-1,496-1,13212,315
Cash Flow from Operations 9,6665,9038,2054,41310,0999,5148,3544,3409,5706,816
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