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Western Digital Corp (NAS:WDC)
Cash Flow from Operations
$2,817 Mil (TTM As of Dec. 2013)

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. 2013, Western Digital Corp's Net Income From Continuing Operations was $430 Mil. Its DDA was $317 Mil. Its Change In Working Capital was $-63 Mil. Its cash flow from deferred tax was $-29 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $71 Mil. In all, Western Digital Corp's Cash Flow from Operations for the three months ended in Dec. 2013 was $726 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. 2013 is calculated as:

Western Digital Corp's Cash Flow from Operations for the quarter that ended in Dec. 2013 is

Western Digital Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 727 (Mar. 2013 ) + 684 (Jun. 2013 ) + 680 (Sep. 2013 ) + 726 (Dec. 2013 ) = $2,817 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 Dec. 2013 was $430 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 Dec. 2013 was $317 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 Dec. 2013 was $-63 Mil. It means Western Digital Corp's working capital declined by $63 Mil from Sep. 2013 to Dec. 2013 .

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 Dec. 2013 was $-29 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 Dec. 2013 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).

Western Digital Corp's cash flow from others for the three months ended in Dec. 2013 was $71 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.

Western Digital Corp Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
NetIncomeFromContinuingOperations 1501963955648674701,3827261,612980
CF_DDA 1001311602104134795106028251,233
ChangeInWorkingCapital -88129-207-7822198-37238324715
CF_DeferredTax 00-22-126-22427203435
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 2854248991346069272156
Cash Flow from Operations 1904613686181,3991,3051,9421,6553,0673,119

Western Digital Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
NetIncomeFromContinuingOperations 239145483745519335391-265495430
CF_DDA 158140188339313309309302312317
ChangeInWorkingCapital -71-49483-39771-1638-94-63
CF_DeferredTax 9924-8-1280-9-24-10-29
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 17133309239473733-2371
Cash Flow from Operations 3523781,2081,129936772727684680726
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