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Broadcom Ltd (NAS:AVGO)
Cash Flow from Operations
$2,311 Mil (TTM As of Jan. 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 Jan. 2016, Broadcom Ltd's Net Income From Continuing Operations was $377 Mil. Its DDA was $244 Mil. Its Change In Working Capital was $-203 Mil. Its cash flow from deferred tax was $-8 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $57 Mil. And its Cash Flow from Others was $7 Mil. In all, Broadcom Ltd's Cash Flow from Operations for the three months ended in Jan. 2016 was $474 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.

Broadcom Ltd's Cash Flow from Operations for the fiscal year that ended in Oct. 2015 is calculated as:

Broadcom Ltd's Cash Flow from Operations for the quarter that ended in Jan. 2016 is

Broadcom Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2016 was 663 (Apr. 2015 ) + 592 (Jul. 2015 ) + 582 (Oct. 2015 ) + 474 (Jan. 2016 ) = $2,311 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.

Broadcom Ltd's net income from continuing operations for the three months ended in Jan. 2016 was $377 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

Broadcom Ltd's depreciation, depletion and amortization for the three months ended in Jan. 2016 was $244 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.

Broadcom Ltd's change in working capital for the three months ended in Jan. 2016 was $-203 Mil. It means Broadcom Ltd's working capital declined by $203 Mil from Oct. 2015 to Jan. 2016 .

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

Broadcom Ltd's cash flow from deferred tax for the three months ended in Jan. 2016 was $-8 Mil.

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

Broadcom Ltd's cash flow from discontinued operations for the three months ended in Jan. 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.

Broadcom Ltd's stock based compensation for the three months ended in Jan. 2016 was $57 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).

Broadcom Ltd's cash flow from others for the three months ended in Jan. 2016 was $7 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.

Broadcom Ltd Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
NetIncomeFromContinuingOperations 0-22057-444155525635522631,364
CF_DDA 0176159160159157155187625962
ChangeInWorkingCapital 0-3-34-6-99-35-88-69209-166
CF_DeferredTax 0000001-22-92-220
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 012151225385377163232
Cash Flow from Others 0181111710149-37146
Cash Flow from Operations 01462081395107266937221,1752,318

Broadcom Ltd Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
NetIncomeFromContinuingOperations 172134158-164135351344240429377
CF_DDA 585761257250226230256250244
ChangeInWorkingCapital -1316416821-123-15-9-19-203
CF_DeferredTax 00000-64-33-185-8
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 22243055544957636357
Cash Flow from Others -27-2-2-2-79-164375447
Cash Flow from Operations 212229251314381481663592582474
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