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Cerner Corp (NAS:CERN)
Cash Flow from Operations
\$1,207 Mil (TTM As of Jun. 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 Jun. 2016, Cerner Corp's Net Income From Continuing Operations was \$166 Mil. Its DDA was \$125 Mil. Its Change In Working Capital was \$-68 Mil. Its cash flow from deferred tax was \$12 Mil. Its Cash Flow from Discontinued Operations was \$0 Mil. Its Stock Based Compensation was \$20 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 Jun. 2016 was \$255 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:

 Cash Flow from Operations (A: Dec. 2015 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 539.362 + 452.225 + -179.427 + 0 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 70.12 + 65.246 = 948

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

 Cash Flow from Operations (Q: Jun. 2016 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 166.454 + 124.97 + -68.224 + 11.599 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 20.14 + 0.003 = 255

Cerner Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 271.52 (Sep. 2015 ) + 353.095 (Dec. 2015 ) + 327.083 (Mar. 2016 ) + 254.942 (Jun. 2016 ) = \$1,207 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 Jun. 2016 was \$166 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 Jun. 2016 was \$125 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 Jun. 2016 was \$-68 Mil. It means Cerner Corp's working capital declined by \$68 Mil from Mar. 2016 to Jun. 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 Jun. 2016 was \$12 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 Jun. 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 Jun. 2016 was \$20 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 Jun. 2016 was \$0 Mil.

Related Terms

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

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 NetIncomeFromContinuingOperations 110 127 189 193 237 307 397 398 525 539 CF_DDA 125 153 170 190 193 213 223 264 302 452 ChangeInWorkingCapital -26 -17 -89 -47 -28 21 44 10 -147 -179 CF_DeferredTax 3 -4 -3 -4 30 -22 8 0 0 0 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 0 0 15 16 24 28 36 46 59 70 Cash Flow from Others 21 16 0 -0 0 -0 0 -23 107 65 Cash Flow from Operations 233 275 282 347 456 546 708 696 847 948

Cerner Corp Quarterly Data

 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 NetIncomeFromContinuingOperations 120 129 129 148 111 115 147 166 150 166 CF_DDA 70 72 75 85 100 113 116 123 119 125 ChangeInWorkingCapital -50 33 -19 -111 -17 -137 -12 -14 32 -68 CF_DeferredTax 0 0 0 0 4 -2 0 0 8 12 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 14 15 15 16 15 19 19 17 18 20 Cash Flow from Others 2 0 19 85 0 0 2 61 0 0 Cash Flow from Operations 156 248 220 223 214 109 272 353 327 255
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