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National Oilwell Varco Inc (NYSE:NOV)
Cash Flow from Operations
$1,773 Mil (TTM As of Jun. 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 Jun. 2016, National Oilwell Varco Inc's Net Income From Continuing Operations was $-217 Mil. Its DDA was $178 Mil. Its Change In Working Capital was $195 Mil. Its cash flow from deferred tax was $-153 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $125 Mil. In all, National Oilwell Varco Inc's Cash Flow from Operations for the three months ended in Jun. 2016 was $128 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.

National Oilwell Varco Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

National Oilwell Varco Inc's Cash Flow from Operations for the quarter that ended in Jun. 2016 is

National Oilwell Varco Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 410 (Sep. 2015 ) + 614 (Dec. 2015 ) + 621 (Mar. 2016 ) + 128 (Jun. 2016 ) = $1,773 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.

National Oilwell Varco Inc's net income from continuing operations for the three months ended in Jun. 2016 was $-217 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

National Oilwell Varco Inc's depreciation, depletion and amortization for the three months ended in Jun. 2016 was $178 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.

National Oilwell Varco Inc's change in working capital for the three months ended in Jun. 2016 was $195 Mil. It means National Oilwell Varco Inc's working capital increased by $195 Mil from Mar. 2016 to Jun. 2016 .

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

National Oilwell Varco Inc's cash flow from deferred tax for the three months ended in Jun. 2016 was $-153 Mil.

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

National Oilwell Varco Inc's cash flow from discontinued operations for the three months ended in Jun. 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.

National Oilwell Varco Inc's stock based compensation for the three months ended in Jun. 2016 was $0 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).

National Oilwell Varco Inc's cash flow from others for the three months ended in Jun. 2016 was $125 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.

National Oilwell Varco Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 6841,3371,9521,4731,6591,9852,3752,1812,455-767
CF_DDA 161214402490507555616738778747
ChangeInWorkingCapital 327-447-146-22-631-164-2,404350-794-466
CF_DeferredTax 000-174-165-352-90-336-300-258
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00676866738092101109
Cash Flow from Others 45841926010646433723741,967
Cash Flow from Operations 1,2171,1882,2942,0951,5422,1436203,3972,6141,332

National Oilwell Varco Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 548609701597313286156-1,522-118-217
CF_DDA 191190198199190190184183175178
ChangeInWorkingCapital -353-25-44529-464-41389322610195
CF_DeferredTax 45-10221-264-733-148-136-135-153
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 571994417582981291,76789125
Cash Flow from Operations 488871519736114194410614621128
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