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Shire PLC (NAS:SHPG)
Cash Flow from Operations
$1,463 Mil (TTM As of Dec. 2013)

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. 2013, Shire PLC's Net Income From Continuing Operations was $64 Mil. Its DDA was $95 Mil. Its Change In Working Capital was $288 Mil. Its cash flow from deferred tax was $-366 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $529 Mil. In all, Shire PLC's Cash Flow from Operations for the three months ended in Dec. 2013 was $610 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. 2013 is calculated as:

Shire PLC's Cash Flow from Operations for the quarter that ended in Dec. 2013 is

Shire PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 160.4 (Mar. 2013 ) + 258.6 (Jun. 2013 ) + 433.7 (Sep. 2013 ) + 610.3 (Dec. 2013 ) = $1,463 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. 2013 was $64 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. 2013 was $95 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. 2013 was $288 Mil. It means Shire PLC's working capital increased by $288 Mil from Sep. 2013 to Dec. 2013 .

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. 2013 was $-366 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. 2013 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).

Shire PLC's cash flow from others for the three months ended in Dec. 2013 was $529 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.

Shire PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 236-578278-1,452156491588865745665
CF_DDA 6172104172203250256295309324
ChangeInWorkingCapital 12821355-3628-4736-16599-0
CF_DeferredTax -1522-142-2574-99-15-15-58-350
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 79848-631,816340319193288824
Cash Flow from Operations 4903845324758006279551,0741,3831,463

Shire PLC Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
NetIncomeFromContinuingOperations 0865238238227426525827864
CF_DDA 80837379797775767895
ChangeInWorkingCapital -9239-4999-2877-191-15255288
CF_DeferredTax -31-1-21-3-6-28120-5-366
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 222-5761553172032115727529
Cash Flow from Operations 179409257466288372160259434610
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