Switch to:
Pentair PLC (NYSE:PNR)
Cash Flow from Operations
$873 Mil (TTM As of Mar. 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 Mar. 2015, Pentair PLC's Net Income From Continuing Operations was $114 Mil. Its DDA was $60 Mil. Its Change In Working Capital was $-315 Mil. Its cash flow from deferred tax was $6 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $10 Mil. And its Cash Flow from Others was $-7 Mil. In all, Pentair PLC's Cash Flow from Operations for the three months ended in Mar. 2015 was $-133 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.

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

Pentair PLC's Cash Flow from Operations for the quarter that ended in Mar. 2015 is

Pentair PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 412.5 (Jun. 2014 ) + 268.4 (Sep. 2014 ) + 325 (Dec. 2014 ) + -133.2 (Mar. 2015 ) = $873 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.

Pentair PLC's net income from continuing operations for the three months ended in Mar. 2015 was $114 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

Pentair PLC's depreciation, depletion and amortization for the three months ended in Mar. 2015 was $60 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.

Pentair PLC's change in working capital for the three months ended in Mar. 2015 was $-315 Mil. It means Pentair PLC's working capital declined by $315 Mil from Dec. 2014 to Mar. 2015 .

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

Pentair PLC's cash flow from deferred tax for the three months ended in Mar. 2015 was $6 Mil.

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

Pentair PLC's cash flow from discontinued operations for the three months ended in Mar. 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.

Pentair PLC's stock based compensation for the three months ended in Mar. 2015 was $10 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).

Pentair PLC's cash flow from others for the three months ended in Mar. 2015 was $-7 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.

Pentair PLC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 185184211231116189-3-105543215
CF_DDA 7374838710584108164275253
ChangeInWorkingCapital -25-4539-87-10-32-396414376
CF_DeferredTax 6-11-17413129-6-147542
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00021172119363134
Cash Flow from Others 93025-88-1-2324056-119429
Cash Flow from Operations 248231341204258270320689281,008

Pentair PLC Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations -27553155174160119162-186121114
CF_DDA 86807561606369586360
ChangeInWorkingCapital 89-1091196127-2011772477-315
CF_DeferredTax -151215631-112-4-56
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 710876798910
Cash Flow from Others 64-17-6-6-8916-1636960-7
Cash Flow from Operations -179203662482943413268325-133
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)

GuruFocus Premium Plus Membership

FEEDBACK