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Baker Hughes Inc (NYSE:BHI)
Cash Flow from Operations
$3,094 Mil (TTM As of Jun. 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 Jun. 2015, Baker Hughes Inc's Net Income From Continuing Operations was $-190 Mil. Its DDA was $434 Mil. Its Change In Working Capital was $497 Mil. Its cash flow from deferred tax was $-366 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $206 Mil. In all, Baker Hughes Inc's Cash Flow from Operations for the three months ended in Jun. 2015 was $581 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.

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

Baker Hughes Inc's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Baker Hughes Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 1058 (Sep. 2014 ) + 1199 (Dec. 2014 ) + 256 (Mar. 2015 ) + 581 (Jun. 2015 ) = $3,094 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.

Baker Hughes Inc's net income from continuing operations for the three months ended in Jun. 2015 was $-190 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

Baker Hughes Inc's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $434 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.

Baker Hughes Inc's change in working capital for the three months ended in Jun. 2015 was $497 Mil. It means Baker Hughes Inc's working capital increased by $497 Mil from Mar. 2015 to Jun. 2015 .

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

Baker Hughes Inc's cash flow from deferred tax for the three months ended in Jun. 2015 was $-366 Mil.

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

Baker Hughes Inc's cash flow from discontinued operations for the three months ended in Jun. 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.

Baker Hughes Inc's stock based compensation for the three months ended in Jun. 2015 was $0 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).

Baker Hughes Inc's cash flow from others for the three months ended in Jun. 2015 was $206 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.

Baker Hughes Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 8742,3991,5141,6354218191,7431,3171,1031,731
CF_DDA 3844295166377111,0691,3211,5681,6981,814
ChangeInWorkingCapital -169-1,104-413-478251-812-1,414-771472-287
CF_DeferredTax 778-40-256-188-492-1141-70
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000608887108115115122
Cash Flow from Others -142-1,211-139-24024-119241-280-228-357
Cash Flow from Operations 9555901,4751,6141,2398561,5071,8353,1612,953

Baker Hughes Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 268245340250336359369667-593-190
CF_DDA 415424423436437454455468460434
ChangeInWorkingCapital -294127263376-437-405288267224497
CF_DeferredTax 00000-32000-366
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -3-10454-59-3317-54-203165206
Cash Flow from Operations 3866921,0801,0033033931,0581,199256581
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