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CareFusion Corp (NYSE:CFN)
Cash Flow from Operations
$594 Mil (TTM As of Dec. 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 Dec. 2014, CareFusion Corp's Net Income From Continuing Operations was $173 Mil. Its DDA was $50 Mil. Its Change In Working Capital was $-113 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $28 Mil. In all, CareFusion Corp's Cash Flow from Operations for the three months ended in Dec. 2014 was $138 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.

CareFusion Corp's Cash Flow from Operations for the fiscal year that ended in Jun. 2014 is calculated as:

CareFusion Corp's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

CareFusion Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 158 (Mar. 2014 ) + 230 (Jun. 2014 ) + 68 (Sep. 2014 ) + 138 (Dec. 2014 ) = $594 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.

CareFusion Corp's net income from continuing operations for the three months ended in Dec. 2014 was $173 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

CareFusion Corp's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $50 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.

CareFusion Corp's change in working capital for the three months ended in Dec. 2014 was $-113 Mil. It means CareFusion Corp's working capital declined by $113 Mil from Sep. 2014 to Dec. 2014 .

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

CareFusion Corp's cash flow from deferred tax for the three months ended in Dec. 2014 was $0 Mil.

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

CareFusion Corp's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

CareFusion Corp's stock based compensation for the three months ended in Dec. 2014 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).

CareFusion Corp's cash flow from others for the three months ended in Dec. 2014 was $28 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.

CareFusion Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
NetIncomeFromContinuingOperations 00502663290161299361389417
CF_DDA 00117165170167186198184200
ChangeInWorkingCapital 00-236-10743345-289-12-5465
CF_DeferredTax 00-3871-71-122581813-73
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 006854566765515358
Cash Flow from Others 0010540315344382918
Cash Flow from Operations 00519886803652323654614685

CareFusion Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 8710884110789710214076173
CF_DDA 45464647464753544950
ChangeInWorkingCapital -8812220-86591280-81-113
CF_DeferredTax 00013000-7300
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000530005800
Cash Flow from Others 351316-353620-9-292428
Cash Flow from Operations 791791681887422315823068138
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