Switch to:
TRW Automotive Holdings Corp (NYSE:TRW)
Cash Flow from Operations
$954 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, TRW Automotive Holdings Corp's Net Income From Continuing Operations was $-348 Mil. Its DDA was $107 Mil. Its Change In Working Capital was $585 Mil. Its cash flow from deferred tax was $-213 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $36 Mil. And its Cash Flow from Others was $506 Mil. In all, TRW Automotive Holdings Corp's Cash Flow from Operations for the three months ended in Dec. 2014 was $673 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.

TRW Automotive Holdings Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

TRW Automotive Holdings Corp's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

TRW Automotive Holdings Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was -183 (Mar. 2014 ) + 257 (Jun. 2014 ) + 207 (Sep. 2014 ) + 673 (Dec. 2014 ) = $954 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.

TRW Automotive Holdings Corp's net income from continuing operations for the three months ended in Dec. 2014 was $-348 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

TRW Automotive Holdings Corp's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $107 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.

TRW Automotive Holdings Corp's change in working capital for the three months ended in Dec. 2014 was $585 Mil. It means TRW Automotive Holdings Corp's working capital increased by $585 Mil from Sep. 2014 to Dec. 2014 .

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

TRW Automotive Holdings Corp's cash flow from deferred tax for the three months ended in Dec. 2014 was $-213 Mil.

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

TRW Automotive Holdings Corp'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.

TRW Automotive Holdings Corp's stock based compensation for the three months ended in Dec. 2014 was $36 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).

TRW Automotive Holdings Corp's cash flow from others for the three months ended in Dec. 2014 was $506 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.

TRW Automotive Holdings Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 20417690-764738751,1951,0411,007334
CF_DDA 521525557576495469447409430444
ChangeInWorkingCapital -95471162568036-136-71-80-134
CF_DeferredTax -3423112-456-145-204-47-94
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 002220141315213636
Cash Flow from Others -94-122-49673-203-397-256-240-220368
Cash Flow from Operations 5026497377734551,0521,1209561,126954

TRW Automotive Holdings Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 176423173260206368209275198-348
CF_DDA 100102105107106112109111117107
ChangeInWorkingCapital -63529-420-106-158604-480-134-105585
CF_DeferredTax 10-316235928-157304643-213
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0210003600036
Cash Flow from Others -67-48-59-49-35-77-51-41-46506
Cash Flow from Operations 156711-178271147886-183257207673
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