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CVS Health Corp (NYSE:CVS)
Cash Flow from Operations
$10,069 Mil (TTM As of Dec. 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 Dec. 2016, CVS Health Corp's Net Income From Continuing Operations was $1,707 Mil. Its DDA was $628 Mil. Its Change In Working Capital was $-304 Mil. Its cash flow from deferred tax was $34 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $56 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 Dec. 2016 was $2,121 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. 2016 is calculated as:

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

CVS Health Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 2412 (Mar. 2016 ) + 1611 (Jun. 2016 ) + 3925 (Sep. 2016 ) + 2121 (Dec. 2016 ) = $10,069 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 Dec. 2016 was $1,707 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 Dec. 2016 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.

CVS Health Corp's change in working capital for the three months ended in Dec. 2016 was $-304 Mil. It means CVS Health Corp's working capital declined by $304 Mil from Sep. 2016 to Dec. 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 Dec. 2016 was $34 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 Dec. 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 Dec. 2016 was $56 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 Dec. 2016 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 local exchange's currency.

CVS Health Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 2,6373,2123,6963,4243,4583,8624,5924,6445,2395,319
CF_DDA 1,0951,2741,3891,4691,5681,7531,8701,9312,0922,475
ChangeInWorkingCapital -620-628-1,263-294604687-7349341,1171,257
CF_DeferredTax 40-34830144-111-86-58-266153
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 092165150135132141165230222
Cash Flow from Others 78-000-5334805210643
Cash Flow from Operations 3,2303,9474,0354,7795,8566,6715,7838,1378,41210,069

CVS Health Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 9481,3211,2211,2721,2471,4991,1479241,5411,707
CF_DDA 477489490488532582617619611628
ChangeInWorkingCapital -2371,563260-8041441,517574-5821,569-304
CF_DeferredTax -1086-3137-190-8217584434
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 44444444875557505956
Cash Flow from Others 5210000005421010
Cash Flow from Operations 1,6453,4231,9841,0371,8203,5712,4121,6113,9252,121
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