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Microsoft Corp (NAS:MSFT)
Cash Flow from Operations
$33,325 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 six months ended in Sep. 2016, Microsoft Corp's Net Income From Continuing Operations was $4,690 Mil. Its DDA was $1,816 Mil. Its Change In Working Capital was $4,957 Mil. Its cash flow from deferred tax was $15 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $703 Mil. And its Cash Flow from Others was $-632 Mil. In all, Microsoft Corp's Cash Flow from Operations for the six months ended in Sep. 2016 was $11,549 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. 2016 is calculated as:

Microsoft Corp's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Microsoft Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was $33,325 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.

Microsoft Corp's net income from continuing operations for the six months ended in Sep. 2016 was $4,690 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 six months ended in Sep. 2016 was $1,816 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 six months ended in Sep. 2016 was $4,957 Mil. It means Microsoft Corp's working capital increased by $4,957 Mil from Jun. 2016 to Sep. 2016 .

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

Microsoft Corp's cash flow from deferred tax for the six months ended in Sep. 2016 was $15 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 six 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.

Microsoft Corp's stock based compensation for the six months ended in Sep. 2016 was $703 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 six months ended in Sep. 2016 was $-632 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.

Microsoft Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
NetIncomeFromContinuingOperations 14,06517,68114,56918,76023,15016,97821,86322,07412,19316,798
CF_DDA 1,4402,0562,5622,6732,7662,9673,7555,2125,9576,622
ChangeInWorkingCapital -961-2,435-178661-3,003-174-1,3756241,513-2,076
CF_DeferredTax 421935762-2202954-19-331224332
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1,5501,4791,7081,8912,1662,2442,4062,4462,5742,668
Cash Flow from Others 1,2811,896-3863081,9138,6572,2032,4777,2078,981
Cash Flow from Operations 17,79621,61219,03724,07326,99431,62628,83332,50229,66833,325

Microsoft Corp Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 4,6124,5405,8634,985-3,1954,9024,9983,7563,1224,690
CF_DDA 1,7421,4281,5211,5151,4931,4611,5441,7071,9101,816
ChangeInWorkingCapital -2,3804,507-2,4953,308-3,8072,597-2,0262,953-5,5804,957
CF_DeferredTax -369301314253-64473-24735115515
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 618646633641654674658672664703
Cash Flow from Others 5,562-3,068-1,496-1,10112,348-8316719288,193-632
Cash Flow from Operations 9,7858,3544,3409,6016,8498,8765,59810,3678,46411,549
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