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Western Digital Corp (NAS:WDC)
Cash Flow from Operations
$2,242 Mil (TTM As of Jun. 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 Jun. 2015, Western Digital Corp's Net Income From Continuing Operations was $220 Mil. Its DDA was $250 Mil. Its Change In Working Capital was $-123 Mil. Its cash flow from deferred tax was $19 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $45 Mil. And its Cash Flow from Others was $77 Mil. In all, Western Digital Corp's Cash Flow from Operations for the three months ended in Jun. 2015 was $488 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.

Western Digital Corp's Cash Flow from Operations for the fiscal year that ended in Jun. 2015 is calculated as:

Western Digital Corp's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Western Digital Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 827 (Sep. 2014 ) + 243 (Dec. 2014 ) + 684 (Mar. 2015 ) + 488 (Jun. 2015 ) = $2,242 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.

Western Digital Corp's net income from continuing operations for the three months ended in Jun. 2015 was $220 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

Western Digital Corp's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $250 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.

Western Digital Corp's change in working capital for the three months ended in Jun. 2015 was $-123 Mil. It means Western Digital Corp's working capital declined by $123 Mil from Mar. 2015 to Jun. 2015 .

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

Western Digital Corp's cash flow from deferred tax for the three months ended in Jun. 2015 was $19 Mil.

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

Western Digital Corp's cash flow from discontinued operations for the three months ended in Jun. 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.

Western Digital Corp's stock based compensation for the three months ended in Jun. 2015 was $45 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).

Western Digital Corp's cash flow from others for the three months ended in Jun. 2015 was $77 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.

Western Digital Corp Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
NetIncomeFromContinuingOperations 3955648674701,3827261,6129801,6171,465
CF_DDA 1602104134795106028251,2331,2441,114
ChangeInWorkingCapital -207-7822198-37238324715-234-593
CF_DeferredTax -22-126-22427203435-1328
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 003747606992137156162
Cash Flow from Others 4248628700180194666
Cash Flow from Operations 3686181,3991,3051,9421,6553,0673,1192,8162,242

Western Digital Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 391-265495430375317423438384220
CF_DDA 309302312317307308289290285250
ChangeInWorkingCapital -1638-101-65-23-4561-5365-123
CF_DeferredTax -9-24-10-29-27531021-2219
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 36304242413139413745
Cash Flow from Others 13-583125485-11-577
Cash Flow from Operations 727684680726698712827243684488
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