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Pfizer Inc (NYSE:PFE)
Cash Flow from Operations
$16,883 Mil (TTM As of Dec. 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 Dec. 2014, Pfizer Inc's Net Income From Continuing Operations was $1,236 Mil. Its DDA was $1,331 Mil. Its Change In Working Capital was $2,942 Mil. Its cash flow from deferred tax was $-449 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $162 Mil. And its Cash Flow from Others was $176 Mil. In all, Pfizer Inc's Cash Flow from Operations for the three months ended in Dec. 2014 was $5,398 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.

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

Pfizer Inc's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Pfizer Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 2935 (Mar. 2014 ) + 4087 (Jun. 2014 ) + 4463 (Sep. 2014 ) + 5398 (Dec. 2014 ) = $16,883 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.

Pfizer Inc's net income from continuing operations for the three months ended in Dec. 2014 was $1,236 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

Pfizer Inc's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $1,331 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.

Pfizer Inc's change in working capital for the three months ended in Dec. 2014 was $2,942 Mil. It means Pfizer Inc's working capital increased by $2,942 Mil from Sep. 2014 to Dec. 2014 .

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

Pfizer Inc's cash flow from deferred tax for the three months ended in Dec. 2014 was $-449 Mil.

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

Pfizer Inc's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

Pfizer Inc's stock based compensation for the three months ended in Dec. 2014 was $162 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).

Pfizer Inc's cash flow from others for the three months ended in Dec. 2014 was $176 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.

Pfizer Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 8,08519,3378,1448,1278,6448,28810,04914,59822,0729,168
CF_DDA 5,5765,2935,2005,0904,7578,4879,0267,6116,4105,537
ChangeInWorkingCapital -7973,016-8004,85912,517-10,4262,729-1,942-3,3921,423
CF_DeferredTax -1,457-1,945-2,788-1,331-9,5821,9534542,1981,703317
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000384349405419481523586
Cash Flow from Others 3,326-8,1073,5971,109-982,747-2,437-5,892-9,551-148
Cash Flow from Operations 14,73317,59413,35318,23816,58711,45420,24017,05417,76516,883

Pfizer Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 3,21414,5982,76514,1342,5992,5742,3382,9212,6731,236
CF_DDA 1,7141,8951,7741,5231,5211,5921,4561,4241,3261,331
ChangeInWorkingCapital -4751,568-3,393-1,881962920-1,091-8584302,942
CF_DeferredTax 2262,07892730840959345506-85-449
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 115119189103126105143138143162
Cash Flow from Others 209-15,002-21-10,357291536-256-44-24176
Cash Flow from Operations 5,0035,2562,2413,8305,9085,7862,9354,0874,4635,398
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