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Nasdaq Inc (NAS:NDAQ)
Cash Flow from Operations
$685 Mil (TTM As of Dec. 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 Dec. 2015, Nasdaq Inc's Net Income From Continuing Operations was $148 Mil. Its DDA was $36 Mil. Its Change In Working Capital was $-7 Mil. Its cash flow from deferred tax was $47 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $19 Mil. And its Cash Flow from Others was $-30 Mil. In all, Nasdaq Inc's Cash Flow from Operations for the three months ended in Dec. 2015 was $213 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.

Nasdaq Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Nasdaq Inc's Cash Flow from Operations for the quarter that ended in Dec. 2015 is

Nasdaq Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 231 (Mar. 2015 ) + 175 (Jun. 2015 ) + 66 (Sep. 2015 ) + 213 (Dec. 2015 ) = $685 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.

Nasdaq Inc's net income from continuing operations for the three months ended in Dec. 2015 was $148 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

Nasdaq Inc's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $36 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.

Nasdaq Inc's change in working capital for the three months ended in Dec. 2015 was $-7 Mil. It means Nasdaq Inc's working capital declined by $7 Mil from Sep. 2015 to Dec. 2015 .

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

Nasdaq Inc's cash flow from deferred tax for the three months ended in Dec. 2015 was $47 Mil.

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

Nasdaq Inc's cash flow from discontinued operations for the three months ended in Dec. 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.

Nasdaq Inc's stock based compensation for the three months ended in Dec. 2015 was $19 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).

Nasdaq Inc's cash flow from others for the three months ended in Dec. 2015 was $-30 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.

Nasdaq Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 128518315263389383349384413427
CF_DDA 713993104103109104122137138
ChangeInWorkingCapital 2463-19648-12780-613-1-15
CF_DeferredTax 13-16-107-10-3541628-6-14
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 002635333646476268
Cash Flow from Others -35-43185142775779-208281
Cash Flow from Operations 201173216582440669588574687685

Nasdaq Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 141103102122869132138148132
CF_DDA 3435343533343335360
ChangeInWorkingCapital 342246-15182114-7-115-70
CF_DeferredTax 43-10-11213-55-93470
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1514161517141817190
Cash Flow from Others -3019131491158-12-30-132
Cash Flow from Operations 23718320024280231175662130
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