Switch to:
GuruFocus has detected 5 Warning Signs with Adobe Systems Inc $ADBE.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Adobe Systems Inc (NAS:ADBE)
Cash Flow from Operations
$2,200 Mil (TTM As of Nov. 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 Nov. 2016, Adobe Systems Inc's Net Income From Continuing Operations was $400 Mil. Its DDA was $82 Mil. Its Change In Working Capital was $145 Mil. Its cash flow from deferred tax was $-20 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $88 Mil. And its Cash Flow from Others was $1 Mil. In all, Adobe Systems Inc's Cash Flow from Operations for the three months ended in Nov. 2016 was $696 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.

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

Adobe Systems Inc's Cash Flow from Operations for the quarter that ended in Nov. 2016 is

Adobe Systems Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2016 was 497.527 (Feb. 2016 ) + 488.715 (May. 2016 ) + 517.885 (Aug. 2016 ) + 695.601 (Nov. 2016 ) = $2,200 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.

Adobe Systems Inc's net income from continuing operations for the three months ended in Nov. 2016 was $400 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

Adobe Systems Inc's depreciation, depletion and amortization for the three months ended in Nov. 2016 was $82 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.

Adobe Systems Inc's change in working capital for the three months ended in Nov. 2016 was $145 Mil. It means Adobe Systems Inc's working capital increased by $145 Mil from Aug. 2016 to Nov. 2016 .

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

Adobe Systems Inc's cash flow from deferred tax for the three months ended in Nov. 2016 was $-20 Mil.

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

Adobe Systems Inc's cash flow from discontinued operations for the three months ended in Nov. 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.

Adobe Systems Inc's stock based compensation for the three months ended in Nov. 2016 was $88 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).

Adobe Systems Inc's cash flow from others for the three months ended in Nov. 2016 was $1 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.

Adobe Systems Inc Annual Data

Nov07Nov08Nov09Nov10Nov11Nov12Nov13Nov14Nov15Nov16
NetIncomeFromContinuingOperations 7248723877758338332902686301,169
CF_DDA 315270282293270300321314339332
ChangeInWorkingCapital 72-126184-237810163396264320
CF_DeferredTax 584750-172518930-26-7024
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0172168231286299329334336350
Cash Flow from Others 2704647925-31192-295
Cash Flow from Operations 1,4391,2811,1181,1131,5431,5001,1521,2871,4702,200

Adobe Systems Inc Quarterly Data

Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16
NetIncomeFromContinuingOperations 458885147174223254244271400
CF_DDA 80788086888681848482
ChangeInWorkingCapital 73166-6018332107127786145
CF_DeferredTax -13-185-30-22-2257-6-7-20
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 83858485868192868588
Cash Flow from Others 11-1102-2114-11
Cash Flow from Operations 269400183471360455498489518696
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