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WGL Holdings Inc (NYSE:WGL)
Cash Flow from Operations
$406 Mil (TTM As of Dec. 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 Dec. 2014, WGL Holdings Inc's Net Income From Continuing Operations was $64 Mil. Its DDA was $29 Mil. Its Change In Working Capital was $-162 Mil. Its cash flow from deferred tax was $63 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $17 Mil. In all, WGL Holdings Inc's Cash Flow from Operations for the three months ended in Dec. 2014 was $12 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.

WGL Holdings Inc's Cash Flow from Operations for the fiscal year that ended in Sep. 2014 is calculated as:

WGL Holdings Inc's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

WGL Holdings Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 254.75 (Mar. 2014 ) + 200.817 (Jun. 2014 ) + -60.791 (Sep. 2014 ) + 11.692 (Dec. 2014 ) = $406 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.

WGL Holdings Inc's net income from continuing operations for the three months ended in Dec. 2014 was $64 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

WGL Holdings Inc's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $29 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.

WGL Holdings Inc's change in working capital for the three months ended in Dec. 2014 was $-162 Mil. It means WGL Holdings Inc's working capital declined by $162 Mil from Sep. 2014 to Dec. 2014 .

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

WGL Holdings Inc's cash flow from deferred tax for the three months ended in Dec. 2014 was $63 Mil.

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

WGL Holdings Inc's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

WGL Holdings Inc's stock based compensation for the three months ended in Dec. 2014 was $0 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).

WGL Holdings Inc's cash flow from others for the three months ended in Dec. 2014 was $17 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.

WGL Holdings Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
NetIncomeFromContinuingOperations 10388108117122011814182107
CF_DDA 9496919599949196103111
ChangeInWorkingCapital 29-1160-157-2-51-21-1067786
CF_DeferredTax 810766710359108126
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000222434
Cash Flow from Others -19822014347-265249
Cash Flow from Operations 2328621362308291296218318382

WGL Holdings Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 85390-10-511962-123864
CF_DDA 23272624262727282929
ChangeInWorkingCapital -132-13917598-57-76173188-199-162
CF_DeferredTax 6826-17-7-15-21-216363
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1121-113-000
Cash Flow from Others -681441816121118817
Cash Flow from Operations -100-17279125-68-13255201-6112
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