Switch to:
Amgen Inc (NAS:AMGN)
Cash Flow from Operations
$9,077 Mil (TTM As of Dec. 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 Dec. 2015, Amgen Inc's Net Income From Continuing Operations was $1,800 Mil. Its DDA was $542 Mil. Its Change In Working Capital was $172 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $80 Mil. And its Cash Flow from Others was $-534 Mil. In all, Amgen Inc's Cash Flow from Operations for the three months ended in Dec. 2015 was $2,060 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.

Amgen Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Amgen Inc's Cash Flow from Operations for the quarter that ended in Dec. 2015 is

Amgen Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 1329 (Mar. 2015 ) + 2814 (Jun. 2015 ) + 2874 (Sep. 2015 ) + 2060 (Dec. 2015 ) = $9,077 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.

Amgen Inc's net income from continuing operations for the three months ended in Dec. 2015 was $1,800 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

Amgen Inc's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $542 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.

Amgen Inc's change in working capital for the three months ended in Dec. 2015 was $172 Mil. It means Amgen Inc's working capital increased by $172 Mil from Sep. 2015 to Dec. 2015 .

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

Amgen Inc's cash flow from deferred tax for the three months ended in Dec. 2015 was $0 Mil.

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

Amgen Inc's cash flow from discontinued operations for the three months ended in Dec. 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.

Amgen Inc's stock based compensation for the three months ended in Dec. 2015 was $80 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).

Amgen Inc's cash flow from others for the three months ended in Dec. 2015 was $-534 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.

Amgen Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 2,9503,1664,0524,6054,6273,6834,3455,0815,1586,939
CF_DDA 9631,2021,0731,0491,0171,0601,0881,2862,0922,108
ChangeInWorkingCapital 463-441427109-317294-45-3931,121714
CF_DeferredTax -540136-13747-151-32828-189-108-607
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00262284353341362403408322
Cash Flow from Others 1,5531,33831124225869104103-116-399
Cash Flow from Operations 5,3895,4015,9886,3365,7875,1195,8826,2918,5559,077

Amgen Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 1,3681,0211,0731,5471,2441,2941,6231,6531,8631,800
CF_DDA 288444518506543525524519523542
ChangeInWorkingCapital 67476-52853816780-647665524172
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 100998711210310670908280
Cash Flow from Others -16-205-8935-260-241-113-118-534
Cash Flow from Operations 1,8071,8351,1422,2272,7412,4451,3292,8142,8742,060
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)

GuruFocus Premium Plus Membership

FEEDBACK