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Verisk Analytics Inc (NAS:VRSK)
Cash Flow from Operations
$631 Mil (TTM As of Sep. 2015)

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. 2015, Verisk Analytics Inc's Net Income From Continuing Operations was $132 Mil. Its DDA was $52 Mil. Its Change In Working Capital was $-14 Mil. Its cash flow from deferred tax was $9 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $9 Mil. And its Cash Flow from Others was $-24 Mil. In all, Verisk Analytics Inc's Cash Flow from Operations for the three months ended in Sep. 2015 was $165 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.

Verisk Analytics Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Verisk Analytics Inc's Cash Flow from Operations for the quarter that ended in Sep. 2015 is

Verisk Analytics Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 110.817 (Dec. 2014 ) + 270.99 (Mar. 2015 ) + 84.511 (Jun. 2015 ) + 164.543 (Sep. 2015 ) = $631 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.

Verisk Analytics Inc's net income from continuing operations for the three months ended in Sep. 2015 was $132 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

Verisk Analytics Inc's depreciation, depletion and amortization for the three months ended in Sep. 2015 was $52 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.

Verisk Analytics Inc's change in working capital for the three months ended in Sep. 2015 was $-14 Mil. It means Verisk Analytics Inc's working capital declined by $14 Mil from Jun. 2015 to Sep. 2015 .

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

Verisk Analytics Inc's cash flow from deferred tax for the three months ended in Sep. 2015 was $9 Mil.

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

Verisk Analytics Inc's cash flow from discontinued operations for the three months ended in Sep. 2015 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.

Verisk Analytics Inc's stock based compensation for the three months ended in Sep. 2015 was $9 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).

Verisk Analytics Inc's cash flow from others for the three months ended in Sep. 2015 was $-24 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.

Verisk Analytics Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 00150158127243283329348400
CF_DDA 006665716879104135143
ChangeInWorkingCapital 0011-8382910-1047-31
CF_DeferredTax 00-620121021634424
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00810133335252120
Cash Flow from Others 0019365-46-53-43-89-67
Cash Flow from Operations 00249248326336376468507489

Verisk Analytics Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
NetIncomeFromContinuingOperations 84968711688999799163132
CF_DDA 34333535353637395752
ChangeInWorkingCapital -4612-22141-74-43-55124-63-14
CF_DeferredTax 0538-400281-89
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 6649109-88199
Cash Flow from Others -23-12-22-64-5-10111-84-24
Cash Flow from Operations 55140120233549211127185165
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