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Cisco Systems Inc (NAS:CSCO)
Cash Flow from Operations
$12,184 Mil (TTM As of Jan. 2015)

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 Jan. 2015, Cisco Systems Inc's Net Income From Continuing Operations was $2,397 Mil. Its DDA was $628 Mil. Its Change In Working Capital was $-395 Mil. Its cash flow from deferred tax was $149 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $308 Mil. And its Cash Flow from Others was $-204 Mil. In all, Cisco Systems Inc's Cash Flow from Operations for the three months ended in Jan. 2015 was $2,883 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 Jan. 2015 is

Cisco Systems Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2015 was 3198 (Apr. 2014 ) + 3612 (Jul. 2014 ) + 2491 (Oct. 2014 ) + 2883 (Jan. 2015 ) = $12,184 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 Jan. 2015 was $2,397 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 Jan. 2015 was $628 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 Jan. 2015 was $-395 Mil. It means Cisco Systems Inc's working capital declined by $395 Mil from Oct. 2014 to Jan. 2015 .

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 Jan. 2015 was $149 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 Jan. 2015 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.

Cisco Systems Inc's stock based compensation for the three months ended in Jan. 2015 was $308 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).

Cisco Systems Inc's cash flow from others for the three months ended in Jan. 2015 was $-204 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.

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
Stock Based Compensation 0001,1121,2311,5171,6201,4011,1201,348
Cash Flow from Others 352889-76-479175-390-195-41-139-338
Cash Flow from Operations 7,5687,89910,10412,0899,89710,17310,07911,49112,89412,332

Cisco Systems Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
NetIncomeFromContinuingOperations 2,0923,1432,4782,2701,9961,4292,1812,2471,8282,397
CF_DDA 615617619600591612608621596628
ChangeInWorkingCapital -687-685-1421,030-237681295976-539-395
CF_DeferredTax 13513-100-85130-156-155-497236149
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 306302272240309347353339369308
Cash Flow from Others 4-41-33-69-140-40-84-741-204
Cash Flow from Operations 2,4653,3493,0943,9862,6492,8733,1983,6122,4912,883
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