Switch to:
Xerox Corporation (NYSE:XRX)
Cash Flow from Operations
$2,063 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, Xerox Corporation's Net Income From Continuing Operations was $162 Mil. Its DDA was $356 Mil. Its Change In Working Capital was $74 Mil. Its cash flow from deferred tax was $113 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $15 Mil. And its Cash Flow from Others was $137 Mil. In all, Xerox Corporation's Cash Flow from Operations for the three months ended in Dec. 2014 was $857 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.

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

Xerox Corporation's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Xerox Corporation Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 286 (Mar. 2014 ) + 325 (Jun. 2014 ) + 595 (Sep. 2014 ) + 857 (Dec. 2014 ) = $2,063 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.

Xerox Corporation's net income from continuing operations for the three months ended in Dec. 2014 was $162 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

Xerox Corporation's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $356 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.

Xerox Corporation's change in working capital for the three months ended in Dec. 2014 was $74 Mil. It means Xerox Corporation's working capital increased by $74 Mil from Sep. 2014 to Dec. 2014 .

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

Xerox Corporation's cash flow from deferred tax for the three months ended in Dec. 2014 was $113 Mil.

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

Xerox Corporation'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.

Xerox Corporation's stock based compensation for the three months ended in Dec. 2014 was $15 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).

Xerox Corporation's cash flow from others for the three months ended in Dec. 2014 was $137 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.

Xerox Corporation Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 9781,2101,1352655166371,3281,2231,179992
CF_DDA 6376366566696981,0971,2511,3011,3581,426
ChangeInWorkingCapital 121-188176-161917682-440202-140-394
CF_DeferredTax -1599224-324120-220396117113
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00085851231231259091
Cash Flow from Others -301-140-320405-128189-504-367-229-165
Cash Flow from Operations 1,4201,6171,8719392,2082,7261,9612,5802,3752,063

Xerox Corporation Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 288343300277291311286272272162
CF_DDA 339336329343340346345376349356
ChangeInWorkingCapital 211,016-644-82428121-279-2938874
CF_DeferredTax 096000117000113
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 30333128191226242615
Cash Flow from Others -84-51-103-33-11761-92-54-140137
Cash Flow from Operations 5941,773-87533961968286325595857
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK