Switch to:
Shire PLC (NAS:SHPG)
Cash Flow from Operations
$2,284 Mil (TTM As of Sep. 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 Sep. 2014, Shire PLC's Net Income From Continuing Operations was $480 Mil. Its DDA was $102 Mil. Its Change In Working Capital was $-62 Mil. Its cash flow from deferred tax was $38 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $23 Mil. And its Cash Flow from Others was $13 Mil. In all, Shire PLC's Cash Flow from Operations for the three months ended in Sep. 2014 was $593 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 Sep. 2014 is

Shire PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 610.3 (Dec. 2013 ) + 246.1 (Mar. 2014 ) + 834 (Jun. 2014 ) + 593.4 (Sep. 2014 ) = $2,284 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 Sep. 2014 was $480 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 Sep. 2014 was $102 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 Sep. 2014 was $-62 Mil. It means Shire PLC's working capital declined by $62 Mil from Jun. 2014 to Sep. 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 Sep. 2014 was $38 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 Sep. 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 Sep. 2014 was $23 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 Sep. 2014 was $13 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

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
Stock Based Compensation 0000656662768777
Cash Flow from Others 79848-631,816275-352917201746
Cash Flow from Operations 4903845324758006279551,0741,3831,463

Shire PLC Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 238227426525827864230523480
CF_DDA 7979777576789597108102
ChangeInWorkingCapital 99-2877-191-15255288-24520-62
CF_DeferredTax -3-6-28120-5-36619738
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 21222217201922263023
Cash Flow from Others 32-518119437950712014713
Cash Flow from Operations 466288372160259434610246834593
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)
Free 7-day Trial
FEEDBACK