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Cerner Corp (NAS:CERN)
Cash Flow from Operations
$1,060 Mil (TTM As of Mar. 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 Mar. 2016, Cerner Corp's Net Income From Continuing Operations was $150 Mil. Its DDA was $119 Mil. Its Change In Working Capital was $32 Mil. Its cash flow from deferred tax was $8 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $18 Mil. And its Cash Flow from Others was $0 Mil. In all, Cerner Corp's Cash Flow from Operations for the three months ended in Mar. 2016 was $327 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.

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

Cerner Corp's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

Cerner Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 108.664 (Jun. 2015 ) + 271.52 (Sep. 2015 ) + 353.095 (Dec. 2015 ) + 327.083 (Mar. 2016 ) = $1,060 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.

Cerner Corp's net income from continuing operations for the three months ended in Mar. 2016 was $150 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

Cerner Corp's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $119 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.

Cerner Corp's change in working capital for the three months ended in Mar. 2016 was $32 Mil. It means Cerner Corp's working capital increased by $32 Mil from Dec. 2015 to Mar. 2016 .

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

Cerner Corp's cash flow from deferred tax for the three months ended in Mar. 2016 was $8 Mil.

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

Cerner Corp's cash flow from discontinued operations for the three months ended in Mar. 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.

Cerner Corp's stock based compensation for the three months ended in Mar. 2016 was $18 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).

Cerner Corp's cash flow from others for the three months ended in Mar. 2016 was $0 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.

Cerner Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 110127189193237307397398525539
CF_DDA 125153170190193213223264302452
ChangeInWorkingCapital -26-17-90-47-28214410-147-179
CF_DeferredTax 3-4-3-430-228000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 001516242836465970
Cash Flow from Others 21161-00-00-2310765
Cash Flow from Operations 233275282347456546708696847948

Cerner Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 60120129129148111115147166150
CF_DDA 7470727585100113116123119
ChangeInWorkingCapital 37-5033-19-111-17-137-12-1432
CF_DeferredTax 0000040008
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 13141515161519191718
Cash Flow from Others -422019850-22610
Cash Flow from Operations 141156248220223214109272353327
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