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VMware Inc (NYSE:VMW)
Cash Flow from Operations
$1,936 Mil (TTM As of Mar. 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 Mar. 2016, VMware Inc's Net Income From Continuing Operations was $161 Mil. Its DDA was $88 Mil. Its Change In Working Capital was $333 Mil. Its cash flow from deferred tax was $-18 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $150 Mil. And its Cash Flow from Others was $6 Mil. In all, VMware Inc's Cash Flow from Operations for the three months ended in Mar. 2016 was $720 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.

VMware Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

VMware Inc's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

VMware Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 316 (Jun. 2015 ) + 412 (Sep. 2015 ) + 488 (Dec. 2015 ) + 720 (Mar. 2016 ) = $1,936 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.

VMware Inc's net income from continuing operations for the three months ended in Mar. 2016 was $161 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

VMware Inc's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $88 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.

VMware Inc's change in working capital for the three months ended in Mar. 2016 was $333 Mil. It means VMware Inc's working capital increased by $333 Mil from Dec. 2015 to Mar. 2016 .

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

VMware Inc's cash flow from deferred tax for the three months ended in Mar. 2016 was $-18 Mil.

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

VMware Inc's cash flow from discontinued operations for the three months ended in Mar. 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.

VMware Inc's stock based compensation for the three months ended in Mar. 2016 was $150 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).

VMware Inc's cash flow from others for the three months ended in Mar. 2016 was $6 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.

VMware Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 862182901973577247461,014886997
CF_DDA 67104159198261316355337345335
ChangeInWorkingCapital 89217262382475930580753591118
CF_DeferredTax -22-78000-20-7456-128-31
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00167231292335426454529504
Cash Flow from Others 6092-77-23-210-259-136-79-43-24
Cash Flow from Operations 2805528009861,1742,0261,8972,5352,1801,899

VMware Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 199167194326196172255374161265
CF_DDA 83819190768387898886
ChangeInWorkingCapital 38383232-109309-30-39-12233358
CF_DeferredTax -29-50-36-13-15-7-2213-1813
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 128139133130119123126136150152
Cash Flow from Others -14-11-8-9-2-255-263
Cash Flow from Operations 750409606415683316412488720577
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