Switch to:
Canon Inc (NYSE:CAJ)
Cash Flow from Operations
$5,787 Mil (TTM As of Mar. 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 Mar. 2014, Canon Inc's Net Income From Continuing Operations was $494 Mil. Its DDA was $599 Mil. Its Change In Working Capital was $131 Mil. Its cash flow from deferred tax was $41 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $26 Mil. In all, Canon Inc's Cash Flow from Operations for the three months ended in Mar. 2014 was $1,291 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.

Canon Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

Cash Flow from Operations(A: Dec. 2013 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=2308.3432118+2651.98870481+-339.038752518+161.823806633
+Cash Flow from Discontinued Operations+Cash Flow from Others
+0+109.299255019
=4,892

Canon Inc's Cash Flow from Operations for the quarter that ended in Mar. 2014 is

Cash Flow from Operations(Q: Mar. 2014 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=493.64617697+598.80146011+131.419703683+41.1095278065
+Cash Flow from Discontinued Operations+Cash Flow from Others
+0+25.834976283
=1,291

Canon Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2014 was 1630.08036279 (Jun. 2013 ) + 1282.98046436 (Sep. 2013 ) + 1583.60077486 (Dec. 2013 ) + 1290.81184485 (Mar. 2014 ) = $5,787 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.

Canon Inc's net income from continuing operations for the three months ended in Mar. 2014 was $494 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

Canon Inc's depreciation, depletion and amortization for the three months ended in Mar. 2014 was $599 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.

Canon Inc's change in working capital for the three months ended in Mar. 2014 was $131 Mil. It means Canon Inc's working capital increased by $131 Mil from Dec. 2013 to Mar. 2014 .

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

Canon Inc's cash flow from deferred tax for the three months ended in Mar. 2014 was $41 Mil.

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

Canon Inc's cash flow from discontinued operations for the three months ended in Mar. 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).

Canon Inc's cash flow from others for the three months ended in Mar. 2014 was $26 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.

Canon Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 3,3163,3313,7804,5453,5551,4843,0583,3022,6102,308
CF_DDA 1,8621,9602,1773,1793,7883,4623,3433,3962,8982,652
ChangeInWorkingCapital -143106-86247-2641,1111,826-1,300-1,417-339
CF_DeferredTax 87-6-57-326-36122735637884162
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 302-138-42165125425427325137109
Cash Flow from Operations 5,4245,2535,7727,8106,8436,7099,0106,1014,3134,892

Canon Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
NetIncomeFromContinuingOperations 3,302783673647724427689622658494
CF_DDA 920737773814819658675710714599
ChangeInWorkingCapital -1,250-907292-574-339-545405-219-8131
CF_DeferredTax 4838-266955-8-1718141
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -1,80570135-862922-1301873826
Cash Flow from Operations 1,6506911,8488081,3285671,6301,2831,5841,291
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)
Free 7-day Trial
FEEDBACK
Email Hide