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Alexion Pharmaceuticals Inc (NAS:ALXN)
Cash Flow from Operations
$768 Mil (TTM As of Sep. 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 Sep. 2015, Alexion Pharmaceuticals Inc's Net Income From Continuing Operations was $-184 Mil. Its DDA was $50 Mil. Its Change In Working Capital was $-203 Mil. Its cash flow from deferred tax was $389 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $51 Mil. And its Cash Flow from Others was $120 Mil. In all, Alexion Pharmaceuticals Inc's Cash Flow from Operations for the three months ended in Sep. 2015 was $223 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.

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

Alexion Pharmaceuticals Inc's Cash Flow from Operations for the quarter that ended in Sep. 2015 is

Alexion Pharmaceuticals Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 283.459 (Dec. 2014 ) + 23.034 (Mar. 2015 ) + 238.222 (Jun. 2015 ) + 223.086 (Sep. 2015 ) = $768 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.

Alexion Pharmaceuticals Inc's net income from continuing operations for the three months ended in Sep. 2015 was $-184 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

Alexion Pharmaceuticals Inc's depreciation, depletion and amortization for the three months ended in Sep. 2015 was $50 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.

Alexion Pharmaceuticals Inc's change in working capital for the three months ended in Sep. 2015 was $-203 Mil. It means Alexion Pharmaceuticals Inc's working capital declined by $203 Mil from Jun. 2015 to Sep. 2015 .

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

Alexion Pharmaceuticals Inc's cash flow from deferred tax for the three months ended in Sep. 2015 was $389 Mil.

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

Alexion Pharmaceuticals Inc's cash flow from discontinued operations for the three months ended in Sep. 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.

Alexion Pharmaceuticals Inc's stock based compensation for the three months ended in Sep. 2015 was $51 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).

Alexion Pharmaceuticals Inc's cash flow from others for the three months ended in Sep. 2015 was $120 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.

Alexion Pharmaceuticals Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations -132-923329597175255253657144
CF_DDA 458121618242947167
ChangeInWorkingCapital -3-74-12-14-27-17-14110157-415
CF_DeferredTax 000-20936427193-154395
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00242932455476114227
Cash Flow from Others 2122107821-63-182157
Cash Flow from Operations -110-14053114161270411497640675

Alexion Pharmaceuticals Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 94-1915916617815391170-18467
CF_DDA 7891091911135094
ChangeInWorkingCapital 7093-43781221-63-68-203-81
CF_DeferredTax -976-58-54-487-252138910
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 22202428283443675166
Cash Flow from Others -3931-122-122-871-343512036
Cash Flow from Operations 144209-3110628228323238223191
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