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Rockwell Automation Inc (NYSE:ROK)
Cash Flow from Operations
$947 Mil (TTM As of Sep. 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 Sep. 2016, Rockwell Automation Inc's Net Income From Continuing Operations was $185 Mil. Its DDA was $43 Mil. Its Change In Working Capital was $77 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $10 Mil. And its Cash Flow from Others was $-43 Mil. In all, Rockwell Automation Inc's Cash Flow from Operations for the three months ended in Sep. 2016 was $272 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.

Rockwell Automation Inc's Cash Flow from Operations for the fiscal year that ended in Sep. 2016 is calculated as:

Rockwell Automation Inc's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Rockwell Automation Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 184.8 (Dec. 2015 ) + 214.5 (Mar. 2016 ) + 276 (Jun. 2016 ) + 272 (Sep. 2016 ) = $947 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Rockwell Automation Inc's net income from continuing operations for the three months ended in Sep. 2016 was $185 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

Rockwell Automation Inc's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $43 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.

Rockwell Automation Inc's change in working capital for the three months ended in Sep. 2016 was $77 Mil. It means Rockwell Automation Inc's working capital increased by $77 Mil from Jun. 2016 to Sep. 2016 .

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

Rockwell Automation Inc's cash flow from deferred tax for the three months ended in Sep. 2016 was $0 Mil.

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

Rockwell Automation Inc's cash flow from discontinued operations for the three months ended in Sep. 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.

Rockwell Automation Inc's stock based compensation for the three months ended in Sep. 2016 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).

Rockwell Automation Inc's cash flow from others for the three months ended in Sep. 2016 was $-43 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 local exchange's currency.

Rockwell Automation Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
NetIncomeFromContinuingOperations 1,488578218440697737756827828730
CF_DDA 118137134127131139145153163172
ChangeInWorkingCapital -207-129110-65-151-31-21-4398-36
CF_DeferredTax -44-1615584782-7-7-29-71
Cash Flow from Disc. Op. 0-6-1-1-4-1-7000
Stock Based Compensation 0332836404441434241
Cash Flow from Others -897-522-101-116-2511076288111
Cash Flow from Operations 4595915264946447191,0151,0331,188947

Rockwell Automation Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 200249214206206201186168191185
CF_DDA 40384139414241454343
ChangeInWorkingCapital 3613-2191099-81-37577
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 10101110101011101010
Cash Flow from Others 1616232019-4282828-43
Cash Flow from Operations 301326268285286348185215276272
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