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WR Berkley Corp (NYSE:WRB)
Cash Flow from Operations
$735 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, WR Berkley Corp's Net Income From Continuing Operations was $111 Mil. Its DDA was $25 Mil. Its Change In Working Capital was $19 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $7 Mil. And its Cash Flow from Others was $-2 Mil. In all, WR Berkley Corp's Cash Flow from Operations for the three months ended in Dec. 2014 was $160 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.

WR Berkley Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

WR Berkley Corp's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

WR Berkley Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 143.164 (Mar. 2014 ) + 111.459 (Jun. 2014 ) + 320.163 (Sep. 2014 ) + 160.061 (Dec. 2014 ) = $735 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.

WR Berkley Corp's net income from continuing operations for the three months ended in Dec. 2014 was $111 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

WR Berkley Corp's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $25 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.

WR Berkley Corp's change in working capital for the three months ended in Dec. 2014 was $19 Mil. It means WR Berkley Corp's working capital increased by $19 Mil from Sep. 2014 to Dec. 2014 .

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

WR Berkley Corp's cash flow from deferred tax for the three months ended in Dec. 2014 was $0 Mil.

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

WR Berkley Corp'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.

WR Berkley Corp's stock based compensation for the three months ended in Dec. 2014 was $7 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).

WR Berkley Corp's cash flow from others for the three months ended in Dec. 2014 was $-2 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.

WR Berkley Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 545700766281309446391511500649
CF_DDA 6366748479838810310389
ChangeInWorkingCapital 1,145815661798-311-98288322377355
CF_DeferredTax 0-3600000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 002124242727272428
Cash Flow from Others -1920-72366215-7-124-287-184-386
Cash Flow from Operations 1,7341,5641,4501,553316451670675820735

WR Berkley Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 101165117116137130170180189111
CF_DDA 18382130292325261325
ChangeInWorkingCapital 26156410219873543324919
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 5657666787
Cash Flow from Others -9-143-31-56-58-39-112-134-138-2
Cash Flow from Operations 141222115199313193143111320160
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