Switch to:
American Water Works Co Inc (NYSE:AWK)
Cash Flow from Operations
$1,051 Mil (TTM As of Mar. 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 Mar. 2015, American Water Works Co Inc's Net Income From Continuing Operations was $80 Mil. Its DDA was $107 Mil. Its Change In Working Capital was $-31 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $2 Mil. And its Cash Flow from Others was $40 Mil. In all, American Water Works Co Inc's Cash Flow from Operations for the three months ended in Mar. 2015 was $199 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.

American Water Works Co Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

American Water Works Co Inc's Cash Flow from Operations for the quarter that ended in Mar. 2015 is

American Water Works Co Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 205.741 (Jun. 2014 ) + 389.647 (Sep. 2014 ) + 257.025 (Dec. 2014 ) + 198.619 (Mar. 2015 ) = $1,051 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.

American Water Works Co Inc's net income from continuing operations for the three months ended in Mar. 2015 was $80 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

American Water Works Co Inc's depreciation, depletion and amortization for the three months ended in Mar. 2015 was $107 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.

American Water Works Co Inc's change in working capital for the three months ended in Mar. 2015 was $-31 Mil. It means American Water Works Co Inc's working capital declined by $31 Mil from Dec. 2014 to Mar. 2015 .

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

American Water Works Co Inc's cash flow from deferred tax for the three months ended in Mar. 2015 was $0 Mil.

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

American Water Works Co Inc's cash flow from discontinued operations for the three months ended in Mar. 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.

American Water Works Co Inc's stock based compensation for the three months ended in Mar. 2015 was $2 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).

American Water Works Co Inc's cash flow from others for the three months ended in Mar. 2015 was $40 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.

American Water Works Co Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 0-162-343-562-233268310358369423
CF_DDA 0258304313335330352382408424
ChangeInWorkingCapital 0-97-64-100-188-92-179-91-235-49
CF_DeferredTax 034429614115319520000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000081010111213
Cash Flow from Others 029053580653310512095342286
Cash Flow from Operations 03244745525967758089568961,097

American Water Works Co Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations 555810115160681091529480
CF_DDA 101100101102105106106106106107
ChangeInWorkingCapital 9-50-14916-533-1003316-31
CF_DeferredTax 3296210304510910400
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 3242434332
Cash Flow from Others 491120249220-22-93840
Cash Flow from Operations 221150141398207245206390257199
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