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Applied Materials Inc (NAS:AMAT)
Cash Flow from Operations
$1,800 Mil (TTM As of Oct. 2014)

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 Oct. 2014, Applied Materials Inc's Net Income From Continuing Operations was $256 Mil. Its DDA was $94 Mil. Its Change In Working Capital was $3 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $54 Mil. In all, Applied Materials Inc's Cash Flow from Operations for the three months ended in Oct. 2014 was $407 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.

Applied Materials Inc's Cash Flow from Operations for the fiscal year that ended in Oct. 2014 is calculated as:

Applied Materials Inc's Cash Flow from Operations for the quarter that ended in Oct. 2014 is

Applied Materials Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2014 was 372 (Jan. 2014 ) + 437 (Apr. 2014 ) + 584 (Jul. 2014 ) + 407 (Oct. 2014 ) = $1,800 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.

Applied Materials Inc's net income from continuing operations for the three months ended in Oct. 2014 was $256 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

Applied Materials Inc's depreciation, depletion and amortization for the three months ended in Oct. 2014 was $94 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.

Applied Materials Inc's change in working capital for the three months ended in Oct. 2014 was $3 Mil. It means Applied Materials Inc's working capital increased by $3 Mil from Jul. 2014 to Oct. 2014 .

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

Applied Materials Inc's cash flow from deferred tax for the three months ended in Oct. 2014 was $0 Mil.

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

Applied Materials Inc's cash flow from discontinued operations for the three months ended in Oct. 2014 was $0 Mil.

6. 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).

Applied Materials Inc's cash flow from others for the three months ended in Oct. 2014 was $54 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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.

Applied Materials Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
NetIncomeFromContinuingOperations 1,2101,5171,710961-3059381,9261092561,072
CF_DDA 301270268320291305246422410375
ChangeInWorkingCapital -391-3270227-1912245327-462114
CF_DeferredTax 202532-5819-186122222-910
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 107450199261519442130771510239
Cash Flow from Operations 1,2471,9362,2091,7103331,7232,4291,8516231,800

Applied Materials Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
NetIncomeFromContinuingOperations 218-51534-129168183253262301256
CF_DDA 105971061061009894949394
ChangeInWorkingCapital 156162-97-11298-3511211883
CF_DeferredTax 9178-7832-56110000
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 86589513275478137010254
Cash Flow from Operations 6564111622436419372437584407
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