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Maxim Integrated Products Inc (NAS:MXIM)
Cash Flow from Operations
\$728 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 three months ended in Sep. 2016, Maxim Integrated Products Inc's Net Income From Continuing Operations was \$138 Mil. Its DDA was \$43 Mil. Its Change In Working Capital was \$-70 Mil. Its cash flow from deferred tax was \$15 Mil. Its Cash Flow from Discontinued Operations was \$0 Mil. Its Stock Based Compensation was \$17 Mil. And its Cash Flow from Others was \$-20 Mil. In all, Maxim Integrated Products Inc's Cash Flow from Operations for the three months ended in Sep. 2016 was \$123 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.

Maxim Integrated Products Inc's Cash Flow from Operations for the fiscal year that ended in Jun. 2016 is calculated as:

 Cash Flow from Operations (A: Jun. 2016 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 227.475 + 244.637 + 99.291 + -48.138 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 69.7 + 128.92 = 722

Maxim Integrated Products Inc's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

 Cash Flow from Operations (Q: Sep. 2016 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 137.614 + 43.485 + -69.878 + 14.895 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 17.12 + -19.834 = 123

Maxim Integrated Products Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 182.489 (Dec. 2015 ) + 167.986 (Mar. 2016 ) + 254.071 (Jun. 2016 ) + 123.402 (Sep. 2016 ) = \$728 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.

Maxim Integrated Products Inc's net income from continuing operations for the three months ended in Sep. 2016 was \$138 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

Maxim Integrated Products Inc's depreciation, depletion and amortization for the three months ended in Sep. 2016 was \$43 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.

Maxim Integrated Products Inc's change in working capital for the three months ended in Sep. 2016 was \$-70 Mil. It means Maxim Integrated Products Inc's working capital declined by \$70 Mil from Jun. 2016 to Sep. 2016 .

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

Maxim Integrated Products Inc's cash flow from deferred tax for the three 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.

Maxim Integrated Products Inc's cash flow from discontinued operations for the three 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.

Maxim Integrated Products Inc's stock based compensation for the three months ended in Sep. 2016 was \$17 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).

Maxim Integrated Products Inc's cash flow from others for the three months ended in Sep. 2016 was \$-20 Mil.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Maxim Integrated Products Inc Annual Data

 Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 NetIncomeFromContinuingOperations 286 318 10 125 489 387 455 355 206 227 CF_DDA 105 162 205 168 205 211 207 245 299 245 ChangeInWorkingCapital -40 -120 -8 90 -98 75 33 111 61 99 CF_DeferredTax -104 -15 202 29 140 31 25 -32 -73 -48 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 0 0 -21 94 94 90 84 85 79 70 Cash Flow from Others 369 175 57 -14 31 -37 13 12 120 129 Cash Flow from Operations 617 519 446 491 861 757 818 776 694 722

Maxim Integrated Products Inc Quarterly Data

 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 NetIncomeFromContinuingOperations 85 100 -72 79 99 -72 67 140 92 138 CF_DDA 64 64 72 102 93 102 49 47 46 43 ChangeInWorkingCapital 63 -85 40 110 85 -32 33 20 78 -70 CF_DeferredTax -10 6 -31 -144 -32 -53 19 -0 -14 15 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 22 22 21 10 18 17 18 18 16 17 Cash Flow from Others 10 10 143 -44 -40 155 -5 -56 34 -20 Cash Flow from Operations 234 117 173 113 222 117 182 168 254 123
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