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Accenture PLC (NYSE:ACN)
Cash Flow from Operations
$4,187 Mil (TTM As of Feb. 2015)

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 Feb. 2015, Accenture PLC's Net Income From Continuing Operations was $743 Mil. Its DDA was $152 Mil. Its Change In Working Capital was $-845 Mil. Its cash flow from deferred tax was $115 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $207 Mil. And its Cash Flow from Others was $-71 Mil. In all, Accenture PLC's Cash Flow from Operations for the three months ended in Feb. 2015 was $301 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. 2014 is calculated as:

Accenture PLC's Cash Flow from Operations for the quarter that ended in Feb. 2015 is

Accenture PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2015 was 1363.26 (May. 2014 ) + 1649.212 (Aug. 2014 ) + 872.9 (Nov. 2014 ) + 301.287 (Feb. 2015 ) = $4,187 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 Feb. 2015 was $743 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 Feb. 2015 was $152 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 Feb. 2015 was $-845 Mil. It means Accenture PLC's working capital declined by $845 Mil from Nov. 2014 to Feb. 2015 .

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 Feb. 2015 was $115 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 Feb. 2015 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 Feb. 2015 was $207 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 Feb. 2015 was $-71 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

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
NetIncomeFromContinuingOperations 9409731,2431,6921,9382,0602,5532,8253,5553,176
CF_DDA 282321444491499475513594593621
ChangeInWorkingCapital 50885252-17212739336-889-995
CF_DeferredTax 63-224-108-90-6359-19657-210-74
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000377453426450538616671
Cash Flow from Others 5517137985053324583-93-36287
Cash Flow from Operations 1,8872,6682,6312,8033,1603,0923,4424,2573,3033,486

Accenture PLC Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
NetIncomeFromContinuingOperations 7661,187874727812722882760892743
CF_DDA 140157142154145149162164167152
ChangeInWorkingCapital -1,087-661504356-901-717151472-84-845
CF_DeferredTax -6816-77-80-64-91-49130-119115
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 114184175143127207186151129207
Cash Flow from Others 27-249-116-24622331-28-111-71
Cash Flow from Operations -1096341,5021,2761812921,3631,649873301
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