Switch to:
Accenture PLC (NYSE:ACN)
Cash Flow from Operations
$4,024 Mil (TTM As of May. 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 May. 2016, Accenture PLC's Net Income From Continuing Operations was $950 Mil. Its DDA was $181 Mil. Its Change In Working Capital was $199 Mil. Its cash flow from deferred tax was $27 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $227 Mil. And its Cash Flow from Others was $7 Mil. In all, Accenture PLC's Cash Flow from Operations for the three months ended in May. 2016 was $1,591 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.

Accenture PLC's Cash Flow from Operations for the fiscal year that ended in Aug. 2015 is calculated as:

Accenture PLC's Cash Flow from Operations for the quarter that ended in May. 2016 is

Accenture PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2016 was 1504.586 (Aug. 2015 ) + 611.305 (Nov. 2015 ) + 317.346 (Feb. 2016 ) + 1591.025 (May. 2016 ) = $4,024 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.

Accenture PLC's net income from continuing operations for the three months ended in May. 2016 was $950 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

Accenture PLC's depreciation, depletion and amortization for the three months ended in May. 2016 was $181 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.

Accenture PLC's change in working capital for the three months ended in May. 2016 was $199 Mil. It means Accenture PLC's working capital increased by $199 Mil from Feb. 2016 to May. 2016 .

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

Accenture PLC's cash flow from deferred tax for the three months ended in May. 2016 was $27 Mil.

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

Accenture PLC's cash flow from discontinued operations for the three months ended in May. 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.

Accenture PLC's stock based compensation for the three months ended in May. 2016 was $227 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).

Accenture PLC's cash flow from others for the three months ended in May. 2016 was $7 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.

Accenture PLC Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
NetIncomeFromContinuingOperations 9731,2431,6921,9382,0602,5532,8253,5553,1763,274
CF_DDA 321444491499475513594593621646
ChangeInWorkingCapital 885252-17212739336-889-995189
CF_DeferredTax -224-108-90-6359-19657-210-74-459
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00377453426450538616671680
Cash Flow from Others 7137985053324583-93-36287-238
Cash Flow from Operations 2,6682,6312,8033,1603,0923,4424,2573,3033,4864,092

Accenture PLC Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
NetIncomeFromContinuingOperations 7228827608927438507888691,400950
CF_DDA 149162164167152153174182173181
ChangeInWorkingCapital -717151472-84-845397722-470-913199
CF_DeferredTax -91-49130-119115-121-334-20-4327
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 207186151129207196149129229227
Cash Flow from Others 2331-28-111-71-627-79-5287
Cash Flow from Operations 2921,3631,6498733011,4131,5056113171,591
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