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VMWare Inc (NYSE:VMW)
Cash Flow from Operations
$2,452 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, VMWare Inc's Net Income From Continuing Operations was $194 Mil. Its DDA was $91 Mil. Its Change In Working Capital was $232 Mil. Its cash flow from deferred tax was $-36 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $125 Mil. In all, VMWare Inc's Cash Flow from Operations for the three months ended in Sep. 2014 was $606 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. 2013 is calculated as:

VMWare Inc's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

VMWare Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 687 (Dec. 2013 ) + 750 (Mar. 2014 ) + 409 (Jun. 2014 ) + 606 (Sep. 2014 ) = $2,452 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 Sep. 2014 was $194 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 Sep. 2014 was $91 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 Sep. 2014 was $232 Mil. It means VMWare Inc's working capital increased by $232 Mil from Jun. 2014 to Sep. 2014 .

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 Sep. 2014 was $-36 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 Sep. 2014 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).

VMWare Inc's cash flow from others for the three months ended in Sep. 2014 was $125 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.

VMWare Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 067862182901973577247461,014
CF_DDA 03967104159198261316355337
ChangeInWorkingCapital 012789217262382475910507753
CF_DeferredTax 0-23-22-780000056
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 0276092892088176290375
Cash Flow from Operations 02382805528009861,1742,0261,8982,535

VMWare Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 00206173245261335199167194
CF_DDA 89869391888276838191
ChangeInWorkingCapital 42999433410516914538383232
CF_DeferredTax 000-28373215-29-50-36
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 2602511001065993116114128125
Cash Flow from Operations 391436493676534637687750409606
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