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Northeast Utilities (NYSE:NU)
Cash Flow from Operations
$1,891 Mil (TTM As of Sep. 2014)

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. 2014, Northeast Utilities's Net Income From Continuing Operations was $236 Mil. Its DDA was $153 Mil. Its Change In Working Capital was $91 Mil. Its cash flow from deferred tax was $-68 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $95 Mil. In all, Northeast Utilities's Cash Flow from Operations for the three months ended in Sep. 2014 was $507 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.

Northeast Utilities's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

Northeast Utilities's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Northeast Utilities Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 486.571 (Dec. 2013 ) + 493.796 (Mar. 2014 ) + 402.867 (Jun. 2014 ) + 507.354 (Sep. 2014 ) = $1,891 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.

Northeast Utilities's net income from continuing operations for the three months ended in Sep. 2014 was $236 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

Northeast Utilities's depreciation, depletion and amortization for the three months ended in Sep. 2014 was $153 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.

Northeast Utilities's change in working capital for the three months ended in Sep. 2014 was $91 Mil. It means Northeast Utilities's working capital increased by $91 Mil from Jun. 2014 to Sep. 2014 .

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

Northeast Utilities's cash flow from deferred tax for the three months ended in Sep. 2014 was $-68 Mil.

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

Northeast Utilities's cash flow from discontinued operations for the three months ended in Sep. 2014 was $0 Mil.

6. 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).

Northeast Utilities's cash flow from others for the three months ended in Sep. 2014 was $95 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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.

Northeast Utilities Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 122-253471246266336394401533794
CF_DDA 528657464306465323396302519817
ChangeInWorkingCapital -87-50376-490-119-82-12288-111-307
CF_DeferredTax 112-203-204787126211197292431
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -158291-700179-44287214-17-72-72
Cash Flow from Operations 5174414072486559891,0939701,1611,664

Northeast Utilities Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 46210533230173211179238129236
CF_DDA 14414414915526840353151152153
ChangeInWorkingCapital 60-9786-241-1051228-102-14791
CF_DeferredTax 71271061698733497137-4-68
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 5492-509161-128-190-1717027295
Cash Flow from Operations 312476365473296408487494403507
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