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Dover Corp (NYSE:DOV)
Cash Flow from Operations
$981 Mil (TTM As of Sep. 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 Sep. 2016, Dover Corp's Net Income From Continuing Operations was $130 Mil. Its DDA was $87 Mil. Its Change In Working Capital was $16 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $3 Mil. And its Cash Flow from Others was $-5 Mil. In all, Dover Corp's Cash Flow from Operations for the three months ended in Sep. 2016 was $232 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.

Dover Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Dover Corp's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Dover Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 408.292 (Dec. 2015 ) + 133.413 (Mar. 2016 ) + 207.868 (Jun. 2016 ) + 231.665 (Sep. 2016 ) = $981 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.

Dover Corp's net income from continuing operations for the three months ended in Sep. 2016 was $130 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

Dover Corp's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $87 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.

Dover Corp's change in working capital for the three months ended in Sep. 2016 was $16 Mil. It means Dover Corp's working capital increased by $16 Mil from Jun. 2016 to Sep. 2016 .

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

Dover Corp's cash flow from deferred tax for the three months ended in Sep. 2016 was $0 Mil.

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

Dover Corp's cash flow from discontinued operations for the three months ended in Sep. 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.

Dover Corp's stock based compensation for the three months ended in Sep. 2016 was $3 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).

Dover Corp's cash flow from others for the three months ended in Sep. 2016 was $-5 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.

Dover Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 562661695372619773833966778596
CF_DDA 196245261258268303358422307327
ChangeInWorkingCapital 811-1296-185-21882-219-126-15
CF_DeferredTax -15-3333-23856-19-43-34-6
Cash Flow from Disc. Op. 00-9-7-4155-306-116
Stock Based Compensation 002518222631303231
Cash Flow from Others 145-91082141173-172913132
Cash Flow from Operations 8958751,0037969471,0781,2731,155976949

Dover Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 21723315211715618613799118130
CF_DDA 79787280787792898887
ChangeInWorkingCapital -35-2136-69-301273-552416
CF_DeferredTax -64-15340000000
Cash Flow from Disc. Op. 65-414-16-82-22000
Stock Based Compensation 887135751133
Cash Flow from Others 7-724-11130124-11-25-5
Cash Flow from Operations 277290425134206201408133208232
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