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Agilent Technologies Inc (NYSE:A)
Cash Flow from Operations
$798 Mil (TTM As of Jan. 2017)

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 Jan. 2017, Agilent Technologies Inc's Net Income From Continuing Operations was $168 Mil. Its DDA was $55 Mil. Its Change In Working Capital was $-152 Mil. Its cash flow from deferred tax was $16 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $20 Mil. And its Cash Flow from Others was $9 Mil. In all, Agilent Technologies Inc's Cash Flow from Operations for the three months ended in Jan. 2017 was $116 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.

Agilent Technologies Inc's Cash Flow from Operations for the fiscal year that ended in Oct. 2016 is calculated as:

Agilent Technologies Inc's Cash Flow from Operations for the quarter that ended in Jan. 2017 is

Agilent Technologies Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2017 was 249 (Apr. 2016 ) + 199 (Jul. 2016 ) + 234 (Oct. 2016 ) + 116 (Jan. 2017 ) = $798 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Agilent Technologies Inc's net income from continuing operations for the three months ended in Jan. 2017 was $168 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

Agilent Technologies Inc's depreciation, depletion and amortization for the three months ended in Jan. 2017 was $55 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.

Agilent Technologies Inc's change in working capital for the three months ended in Jan. 2017 was $-152 Mil. It means Agilent Technologies Inc's working capital declined by $152 Mil from Oct. 2016 to Jan. 2017 .

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

Agilent Technologies Inc's cash flow from deferred tax for the three months ended in Jan. 2017 was $16 Mil.

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

Agilent Technologies Inc's cash flow from discontinued operations for the three months ended in Jan. 2017 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.

Agilent Technologies Inc's stock based compensation for the three months ended in Jan. 2017 was $20 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).

Agilent Technologies Inc's cash flow from others for the three months ended in Jan. 2017 was $9 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 local exchange's currency.

Agilent Technologies Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
NetIncomeFromContinuingOperations 638693-316841,0121,153734549401462
CF_DDA 191201162202253301372384253246
ChangeInWorkingCapital 120-179105-52-159-176-89-185-315-40
CF_DeferredTax -134-5328-10938-158-4-192703
Cash Flow from Disc. Op. 000000008100
Stock Based Compensation 0827166727485965458
Cash Flow from Others 1541273-7344345479-76164
Cash Flow from Operations 9697564087181,2601,2281,152731512793

Agilent Technologies Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
NetIncomeFromContinuingOperations 68638711114012193122126168
CF_DDA 93686362606664605655
ChangeInWorkingCapital 157-18613-70-72-10934-540-152
CF_DeferredTax -2106-2-2086431-1-3116
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 19221110112313111120
Cash Flow from Others 57711151661412329
Cash Flow from Operations 184-20183108241111249199234116
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