Switch to:
GuruFocus has detected 4 Warning Signs with AbbVie Inc $ABBV.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
AbbVie Inc (NYSE:ABBV)
Cash Flow from Operations
$7,041 Mil (TTM As of Dec. 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 Dec. 2016, AbbVie Inc's Net Income From Continuing Operations was $1,391 Mil. Its DDA was $328 Mil. Its Change In Working Capital was $-491 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $75 Mil. And its Cash Flow from Others was $238 Mil. In all, AbbVie Inc's Cash Flow from Operations for the three months ended in Dec. 2016 was $1,541 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.

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

AbbVie Inc's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

AbbVie Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 2128 (Mar. 2016 ) + 1918 (Jun. 2016 ) + 1454 (Sep. 2016 ) + 1541 (Dec. 2016 ) = $7,041 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.

AbbVie Inc's net income from continuing operations for the three months ended in Dec. 2016 was $1,391 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

AbbVie Inc's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $328 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.

AbbVie Inc's change in working capital for the three months ended in Dec. 2016 was $-491 Mil. It means AbbVie Inc's working capital declined by $491 Mil from Sep. 2016 to Dec. 2016 .

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

AbbVie Inc's cash flow from deferred tax for the three months ended in Dec. 2016 was $0 Mil.

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

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

AbbVie Inc's stock based compensation for the three months ended in Dec. 2016 was $75 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).

AbbVie Inc's cash flow from others for the three months ended in Dec. 2016 was $238 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.

AbbVie Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 004,6374,1783,4335,2754,1281,7745,1445,953
CF_DDA 006971,1841,2721,1508977868361,189
ChangeInWorkingCapital 00504-866706-621658-788504-1,689
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00157167163187212241282353
Cash Flow from Others 00-6273136733543721,5367691,235
Cash Flow from Operations 005,3674,9766,2476,3456,2673,5497,5357,041

AbbVie Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 506-8101,0221,3661,2391,5171,3541,6101,5981,391
CF_DDA 192193158190227261268289304328
ChangeInWorkingCapital 102-642-905253012-17-230-951-491
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 4443119555553138716975
Cash Flow from Others 942638376169104120385178434238
Cash Flow from Operations 1,786-5781,5851,8322,1551,9632,1281,9181,4541,541
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