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Western Digital Corp (NAS:WDC)
Cash Flow from Operations
$1,983 Mil (TTM As of Jun. 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 Jun. 2016, Western Digital Corp's Net Income From Continuing Operations was $-366 Mil. Its DDA was $420 Mil. Its Change In Working Capital was $244 Mil. Its cash flow from deferred tax was $-132 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $70 Mil. And its Cash Flow from Others was $119 Mil. In all, Western Digital Corp's Cash Flow from Operations for the three months ended in Jun. 2016 was $355 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. 2016 is calculated as:

Western Digital Corp's Cash Flow from Operations for the quarter that ended in Jun. 2016 is

Western Digital Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 545 (Sep. 2015 ) + 598 (Dec. 2015 ) + 485 (Mar. 2016 ) + 355 (Jun. 2016 ) = $1,983 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. 2016 was $-366 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. 2016 was $420 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. 2016 was $244 Mil. It means Western Digital Corp's working capital increased by $244 Mil from Mar. 2016 to Jun. 2016 .

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. 2016 was $-132 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. 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.

Western Digital Corp's stock based compensation for the three months ended in Jun. 2016 was $70 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. 2016 was $119 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

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
NetIncomeFromContinuingOperations 5648674701,3827261,6129801,6171,465242
CF_DDA 2104134795106028251,2331,2441,1141,154
ChangeInWorkingCapital -7822198-37238324715-234-593377
CF_DeferredTax -126-22427203435-1328-149
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 03747606992137156162191
Cash Flow from Others 48628700180194666168
Cash Flow from Operations 6181,3991,3051,9421,6553,0673,1192,8162,2421,983

Western Digital Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 37531742343838422028325174-366
CF_DDA 307308289290285250236252246420
ChangeInWorkingCapital -23-4561-5365-123-2730130244
CF_DeferredTax -27531021-2219-722-32-132
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 41313941374542374270
Cash Flow from Others 25485-11-57718625119
Cash Flow from Operations 698712827243684488545598485355
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