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CVS Health Corp (NYSE:CVS)
Cash Flow from Operations
$8,264 Mil (TTM As of Sep. 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 Sep. 2015, CVS Health Corp's Net Income From Continuing Operations was $1,247 Mil. Its DDA was $532 Mil. Its Change In Working Capital was $144 Mil. Its cash flow from deferred tax was $-190 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $87 Mil. And its Cash Flow from Others was $0 Mil. In all, CVS Health Corp's Cash Flow from Operations for the three months ended in Sep. 2015 was $1,820 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. 2014 is calculated as:

CVS Health Corp's Cash Flow from Operations for the quarter that ended in Sep. 2015 is

CVS Health Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 3423 (Dec. 2014 ) + 1984 (Mar. 2015 ) + 1037 (Jun. 2015 ) + 1820 (Sep. 2015 ) = $8,264 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 Sep. 2015 was $1,247 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 Sep. 2015 was $532 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 Sep. 2015 was $144 Mil. It means CVS Health Corp's working capital increased by $144 Mil from Jun. 2015 to Sep. 2015 .

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 Sep. 2015 was $-190 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 Sep. 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.

CVS Health Corp's stock based compensation for the three months ended in Sep. 2015 was $87 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 Sep. 2015 was $0 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 1,2251,3692,6373,2123,6963,4243,4573,8624,5924,644
CF_DDA 5897331,0951,2741,3891,4691,5681,7531,8701,931
ChangeInWorkingCapital -215-528-620-628-1,263-294605687-734934
CF_DeferredTax 149840-34830144-111-86-58
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00092165150135132141165
Cash Flow from Others -07078000-533480521
Cash Flow from Operations 1,6121,7423,2303,9474,0354,7795,8566,6715,7838,137

CVS Health Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
NetIncomeFromContinuingOperations 1,1241,2491,2651,1291,2469481,3211,2211,2721,247
CF_DDA 449461458477488477489490488532
ChangeInWorkingCapital -719-89-10515-907-2371,563260-804144
CF_DeferredTax 1647-2151628-1086-3137-190
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 32354035424444444487
Cash Flow from Others 000005210000
Cash Flow from Operations 9021,7031,5382,1728971,6453,4231,9841,0371,820
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