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Dover Corp (NYSE:DOV)
Cash Flow from Operations
$976 Mil (TTM As of Dec. 2014)

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. 2014, Dover Corp's Net Income From Continuing Operations was $152 Mil. Its DDA was $72 Mil. Its Change In Working Capital was $136 Mil. Its cash flow from deferred tax was $34 Mil. Its Cash Flow from Discontinued Operations was $1 Mil. Its Stock Based Compensation was $7 Mil. And its Cash Flow from Others was $24 Mil. In all, Dover Corp's Cash Flow from Operations for the three months ended in Dec. 2014 was $425 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 Dec. 2014 is

Dover Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was -16.164 (Mar. 2014 ) + 276.785 (Jun. 2014 ) + 290.243 (Sep. 2014 ) + 425.06 (Dec. 2014 ) = $976 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.

Dover Corp's net income from continuing operations for the three months ended in Dec. 2014 was $152 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 Dec. 2014 was $72 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 Dec. 2014 was $136 Mil. It means Dover Corp's working capital increased by $136 Mil from Sep. 2014 to Dec. 2014 .

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 Dec. 2014 was $34 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 Dec. 2014 was $1 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 Dec. 2014 was $7 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 Dec. 2014 was $24 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.

Dover Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 510562661591356619773833798778
CF_DDA 149196245261258229290358278307
ChangeInWorkingCapital -34811-1296-49-14482-149-126
CF_DeferredTax 18-15-3333-23643-198-34
Cash Flow from Disc. Op. 000-9-71001175666
Stock Based Compensation 00025182025313032
Cash Flow from Others 52145-911397-4114-1712113
Cash Flow from Operations 6948958751,0037969431,0801,2731,153976

Dover Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 233208167258226146176217233152
CF_DDA 90967172736379797872
ChangeInWorkingCapital -34290-241-142284-225-35-2136
CF_DeferredTax 9-2831-57-346812-64-1534
Cash Flow from Disc. Op. 1113-43844-12-5665-41
Stock Based Compensation 7788779887
Cash Flow from Others -19-2434766-117-724
Cash Flow from Operations 29858576309345422-16277290425
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