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Cisco Systems Inc (NAS:CSCO)
Cash Flow from Operations
$12,174 Mil (TTM As of Oct. 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 Oct. 2014, Cisco Systems Inc's Net Income From Continuing Operations was $1,828 Mil. Its DDA was $596 Mil. Its Change In Working Capital was $-539 Mil. Its cash flow from deferred tax was $236 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $370 Mil. In all, Cisco Systems Inc's Cash Flow from Operations for the three months ended in Oct. 2014 was $2,491 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.

Cisco Systems Inc's Cash Flow from Operations for the fiscal year that ended in Jul. 2014 is calculated as:

Cisco Systems Inc's Cash Flow from Operations for the quarter that ended in Oct. 2014 is

Cisco Systems Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2014 was 2873 (Jan. 2014 ) + 3198 (Apr. 2014 ) + 3612 (Jul. 2014 ) + 2491 (Oct. 2014 ) = $12,174 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.

Cisco Systems Inc's net income from continuing operations for the three months ended in Oct. 2014 was $1,828 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

Cisco Systems Inc's depreciation, depletion and amortization for the three months ended in Oct. 2014 was $596 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.

Cisco Systems Inc's change in working capital for the three months ended in Oct. 2014 was $-539 Mil. It means Cisco Systems Inc's working capital declined by $539 Mil from Jul. 2014 to Oct. 2014 .

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

Cisco Systems Inc's cash flow from deferred tax for the three months ended in Oct. 2014 was $236 Mil.

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

Cisco Systems Inc's cash flow from discontinued operations for the three months ended in Oct. 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).

Cisco Systems Inc's cash flow from others for the three months ended in Oct. 2014 was $370 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.

Cisco Systems Inc Annual Data

Jul05Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14
NetIncomeFromContinuingOperations 5,7415,5807,3338,0526,1347,7676,4908,0419,9837,853
CF_DDA 1,0091,2931,4131,7441,7682,0302,4862,6022,4512,432
ChangeInWorkingCapital 4114802,0562,4321,163-274-165-198-4841,715
CF_DeferredTax 55-343-622-772-574-477-157-314-37-678
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 352889-766331,4061,1271,4251,3609811,010
Cash Flow from Operations 7,5687,89910,10412,0899,89710,17310,07911,49112,89412,332

Cisco Systems Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
NetIncomeFromContinuingOperations 1,9172,0923,1432,4782,2701,9961,4292,1812,2471,828
CF_DDA 786615617619600591612608621596
ChangeInWorkingCapital 396-687-685-1421,030-237681295976-539
CF_DeferredTax -38913513-100-85130-156-155-497236
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 378310261239171169307269265370
Cash Flow from Operations 3,0882,4653,3493,0943,9862,6492,8733,1983,6122,491
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