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CVS Health Corp (NYSE:CVS)
Cash Flow from Operations
$9,414 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, CVS Health Corp's Net Income From Continuing Operations was $924 Mil. Its DDA was $619 Mil. Its Change In Working Capital was $-582 Mil. Its cash flow from deferred tax was $58 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $50 Mil. And its Cash Flow from Others was $542 Mil. In all, CVS Health Corp's Cash Flow from Operations for the three months ended in Jun. 2016 was $1,611 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.

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

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

CVS Health Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 1820 (Sep. 2015 ) + 3571 (Dec. 2015 ) + 2412 (Mar. 2016 ) + 1611 (Jun. 2016 ) = $9,414 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.

CVS Health Corp's net income from continuing operations for the three months ended in Jun. 2016 was $924 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

CVS Health Corp's depreciation, depletion and amortization for the three months ended in Jun. 2016 was $619 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.

CVS Health Corp's change in working capital for the three months ended in Jun. 2016 was $-582 Mil. It means CVS Health Corp's working capital declined by $582 Mil from Mar. 2016 to Jun. 2016 .

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

CVS Health Corp's cash flow from deferred tax for the three months ended in Jun. 2016 was $58 Mil.

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

CVS Health 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.

CVS Health Corp's stock based compensation for the three months ended in Jun. 2016 was $50 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).

CVS Health Corp's cash flow from others for the three months ended in Jun. 2016 was $542 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.

CVS Health Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 1,3692,6373,2123,6963,4243,4583,8624,5924,6445,239
CF_DDA 7331,0951,2741,3891,4691,5681,7531,8701,9312,092
ChangeInWorkingCapital -528-620-628-1,263-294604687-7349341,117
CF_DeferredTax 9840-34830144-111-86-58-266
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0092165150135132141165230
Cash Flow from Others 7078-000-5334805210
Cash Flow from Operations 1,7423,2303,9474,0354,7795,8566,6715,7838,1378,412

CVS Health Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 1,1291,2469481,3211,2211,2721,2471,4991,147924
CF_DDA 477488477489490488532582617619
ChangeInWorkingCapital 515-907-2371,563260-8041441,517574-582
CF_DeferredTax 1628-1086-3137-190-821758
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 35424444444487555750
Cash Flow from Others 00521000000542
Cash Flow from Operations 2,1728971,6453,4231,9841,0371,8203,5712,4121,611
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