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Allergan PLC (NYSE:AGN)
Cash Flow from Operations
$3,260 Mil (TTM As of Jun. 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 Jun. 2015, Allergan PLC's Net Income From Continuing Operations was $-242 Mil. Its DDA was $1,749 Mil. Its Change In Working Capital was $-783 Mil. Its cash flow from deferred tax was $-285 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $175 Mil. And its Cash Flow from Others was $787 Mil. In all, Allergan PLC's Cash Flow from Operations for the three months ended in Jun. 2015 was $1,401 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.

Allergan PLC's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

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

Allergan PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 522.3 (Sep. 2014 ) + 811.6 (Dec. 2014 ) + 525 (Mar. 2015 ) + 1401.3 (Jun. 2015 ) = $3,260 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.

Allergan PLC's net income from continuing operations for the three months ended in Jun. 2015 was $-242 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

Allergan PLC's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $1,749 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.

Allergan PLC's change in working capital for the three months ended in Jun. 2015 was $-783 Mil. It means Allergan PLC's working capital declined by $783 Mil from Mar. 2015 to Jun. 2015 .

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

Allergan PLC's cash flow from deferred tax for the three months ended in Jun. 2015 was $-285 Mil.

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

Allergan PLC's cash flow from discontinued operations for the three months ended in Jun. 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.

Allergan PLC's stock based compensation for the three months ended in Jun. 2015 was $175 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).

Allergan PLC's cash flow from others for the three months ended in Jun. 2015 was $787 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.

Allergan PLC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 139-44514123822218325998-751-1,630
CF_DDA 2072182541711892824485791,0452,828
ChangeInWorkingCapital -90116-18-37-8489-114-36-164-432
CF_DeferredTax -5-25-64-19-118-127-221-275-690
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00141919244049134368
Cash Flow from Others 766064223491121271971,2251,799
Cash Flow from Operations 3264714274173775716326661,2142,243

Allergan PLC Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations -104-56566-1499749-1,043-733-512-242
CF_DDA 2062001964434804729389389831,749
ChangeInWorkingCapital -17-234-1098-122-241-9122-422-783
CF_DeferredTax -118-20-33-105-150-2-261-278-304-285
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 131450581715228109226175
Cash Flow from Others 2396772307119176751753556787
Cash Flow from Operations 219722716524404705228125251,401
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