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Eversource Energy (NYSE:NU)
Cash Flow from Operations
$1,594 Mil (TTM As of Jun. 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 Jun. 2015, Eversource Energy's Net Income From Continuing Operations was $209 Mil. Its DDA was $164 Mil. Its Change In Working Capital was $-55 Mil. Its cash flow from deferred tax was $29 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $27 Mil. In all, Eversource Energy's Cash Flow from Operations for the three months ended in Jun. 2015 was $374 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.

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

Eversource Energy's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Eversource Energy Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 507.354 (Sep. 2014 ) + 231.456 (Dec. 2014 ) + 481.815 (Mar. 2015 ) + 373.741 (Jun. 2015 ) = $1,594 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.

Eversource Energy's net income from continuing operations for the three months ended in Jun. 2015 was $209 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

Eversource Energy's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $164 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.

Eversource Energy's change in working capital for the three months ended in Jun. 2015 was $-55 Mil. It means Eversource Energy's working capital declined by $55 Mil from Mar. 2015 to Jun. 2015 .

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

Eversource Energy's cash flow from deferred tax for the three months ended in Jun. 2015 was $29 Mil.

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

Eversource Energy's cash flow from discontinued operations for the three months ended in Jun. 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.

Eversource Energy's stock based compensation for the three months ended in Jun. 2015 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).

Eversource Energy's cash flow from others for the three months ended in Jun. 2015 was $27 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.

Eversource Energy Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations -253471246266336394401533794827
CF_DDA 657464306465323301302599611615
ChangeInWorkingCapital -50376-490-119-82-12288-111-307-326
CF_DeferredTax -203-204787126211197292431443
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 001414000000
Cash Flow from Others 291-700165-58287310-17-15113477
Cash Flow from Operations 4414072486559891,0939701,1611,6641,635

Eversource Energy Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 230173211179238129236223255209
CF_DDA 155160149147151152153158164164
ChangeInWorkingCapital -241-1051228-102-14791-169-13-55
CF_DeferredTax 169877897137-4-6837914829
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 161-19-42357027295-360-7227
Cash Flow from Operations 473296408487494403507231482374
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