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Shire PLC (NAS:SHPG)
Cash Flow from Operations
$4,228 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, Shire PLC's Net Income From Continuing Operations was $2,172 Mil. Its DDA was $100 Mil. Its Change In Working Capital was $351 Mil. Its cash flow from deferred tax was $-77 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $19 Mil. And its Cash Flow from Others was $-10 Mil. In all, Shire PLC's Cash Flow from Operations for the three months ended in Dec. 2014 was $2,555 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.

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

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

Shire PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 246.1 (Mar. 2014 ) + 834 (Jun. 2014 ) + 593.4 (Sep. 2014 ) + 2554.9 (Dec. 2014 ) = $4,228 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.

Shire PLC's net income from continuing operations for the three months ended in Dec. 2014 was $2,172 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

Shire PLC's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $100 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.

Shire PLC's change in working capital for the three months ended in Dec. 2014 was $351 Mil. It means Shire PLC's working capital increased by $351 Mil from Sep. 2014 to Dec. 2014 .

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

Shire PLC's cash flow from deferred tax for the three months ended in Dec. 2014 was $-77 Mil.

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

Shire PLC'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.

Shire PLC's stock based compensation for the three months ended in Dec. 2014 was $19 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).

Shire PLC's cash flow from others for the three months ended in Dec. 2014 was $-10 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.

Shire PLC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations -578278-1,4521564915888657456653,406
CF_DDA 72104172203250256295309324407
ChangeInWorkingCapital 21355-3628-4736-16599-064
CF_DeferredTax 22-142-2574-99-15-15-58-350-14
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00065666276877797
Cash Flow from Others 848-631,816275-352917201746269
Cash Flow from Operations 3845324758006279551,0741,3831,4634,228

Shire PLC Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 2274265258278642305234802,172
CF_DDA 79777576789597108102100
ChangeInWorkingCapital -2877-191-15255288-24520-62351
CF_DeferredTax -6-28120-5-36619738-77
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 22221720192226302319
Cash Flow from Others -518119437950712014713-10
Cash Flow from Operations 2883721602594346102468345932,555
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