Switch to:
GuruFocus has detected 5 Warning Signs with Netflix Inc $NFLX.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Netflix Inc (NAS:NFLX)
Cash Flow from Operations
$-1,474 Mil (TTM As of Dec. 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 Dec. 2016, Netflix Inc's Net Income From Continuing Operations was $67 Mil. Its DDA was $14 Mil. Its Change In Working Capital was $18 Mil. Its cash flow from deferred tax was $-27 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $44 Mil. And its Cash Flow from Others was $-673 Mil. In all, Netflix Inc's Cash Flow from Operations for the three months ended in Dec. 2016 was $-557 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.

Netflix Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Netflix Inc's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

Netflix Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was -228.59 (Mar. 2016 ) + -226.293 (Jun. 2016 ) + -461.941 (Sep. 2016 ) + -557.16 (Dec. 2016 ) = $-1,474 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.

Netflix Inc's net income from continuing operations for the three months ended in Dec. 2016 was $67 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

Netflix Inc's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $14 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.

Netflix Inc's change in working capital for the three months ended in Dec. 2016 was $18 Mil. It means Netflix Inc's working capital increased by $18 Mil from Sep. 2016 to Dec. 2016 .

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

Netflix Inc's cash flow from deferred tax for the three months ended in Dec. 2016 was $-27 Mil.

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

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

Netflix Inc's stock based compensation for the three months ended in Dec. 2016 was $44 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).

Netflix Inc's cash flow from others for the three months ended in Dec. 2016 was $-673 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.

Netflix Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 678311616122617112267123187
CF_DDA 2252423838441,70248546258
ChangeInWorkingCapital 30-27195911625101137173192
CF_DeferredTax -1-66-1-19-30-22-30-59-47
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0121328627473115125174
Cash Flow from Others -29-21134-9-111-1,766-215-526-1,173-2,037
Cash Flow from Operations 292284325276318229816-749-1,474

Netflix Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 59832426294328415267
CF_DDA 719-1,9631516161515141414
ChangeInWorkingCapital 36-281092792-5534558618
CF_DeferredTax -88-37-4-2912-17-1814-27
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 30302729333642444444
Cash Flow from Others -8731,831-266-275-337-296-330-362-672-673
Cash Flow from Operations -37-38-127-181-196-245-229-226-462-557
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK