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Microsoft Corp (NAS:MSFT)
Cash Flow from Operations
$31,375 Mil (TTM As of Mar. 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 three months ended in Mar. 2016, Microsoft Corp's Net Income From Continuing Operations was $3,756 Mil. Its DDA was $1,707 Mil. Its Change In Working Capital was $2,953 Mil. Its cash flow from deferred tax was $351 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $672 Mil. And its Cash Flow from Others was $928 Mil. In all, Microsoft Corp's Cash Flow from Operations for the three months ended in Mar. 2016 was $10,367 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 Mar. 2016 is

Microsoft Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 6816 (Jun. 2015 ) + 8594 (Sep. 2015 ) + 5598 (Dec. 2015 ) + 10367 (Mar. 2016 ) = $31,375 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 Mar. 2016 was $3,756 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 Mar. 2016 was $1,707 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 Mar. 2016 was $2,953 Mil. It means Microsoft Corp's working capital increased by $2,953 Mil from Dec. 2015 to Mar. 2016 .

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 Mar. 2016 was $351 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 Mar. 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 three months ended in Mar. 2016 was $672 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 Mar. 2016 was $928 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

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 1,2811,896-3863081,9138,6572,2032,2066,6198,981
Cash Flow from Operations 17,79621,61219,03724,07326,99431,62628,83332,23129,08033,325

Microsoft Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 5,6604,6124,5405,8634,985-3,1954,6204,9983,7563,122
CF_DDA 1,2551,7421,4281,5211,5151,4931,4611,5441,7071,910
ChangeInWorkingCapital 2,798-2,3804,507-2,4953,308-3,8072,879-2,0262,953-5,580
CF_DeferredTax -190-369301314253-64473-247351155
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 602618646633641654674658672664
Cash Flow from Others -265,291-3,068-1,496-1,13212,315-1,1136719288,193
Cash Flow from Operations 10,0999,5148,3544,3409,5706,8168,5945,59810,3678,464
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