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Directv (NAS:DTV)
Cash Flow from Operations
$6,369 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, Directv's Net Income From Continuing Operations was $781 Mil. Its DDA was $745 Mil. Its Change In Working Capital was $64 Mil. Its cash flow from deferred tax was $50 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $34 Mil. And its Cash Flow from Others was $-31 Mil. In all, Directv's Cash Flow from Operations for the three months ended in Dec. 2014 was $1,643 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.

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

Directv's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Directv Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 1590 (Mar. 2014 ) + 1474 (Jun. 2014 ) + 1662 (Sep. 2014 ) + 1643 (Dec. 2014 ) = $6,369 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.

Directv's net income from continuing operations for the three months ended in Dec. 2014 was $781 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

Directv's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $745 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.

Directv's change in working capital for the three months ended in Dec. 2014 was $64 Mil. It means Directv's working capital increased by $64 Mil from Sep. 2014 to Dec. 2014 .

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

Directv's cash flow from deferred tax for the three months ended in Dec. 2014 was $50 Mil.

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

Directv's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

Directv's stock based compensation for the three months ended in Dec. 2014 was $34 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).

Directv's cash flow from others for the three months ended in Dec. 2014 was $-31 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.

Directv Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 3051,4201,4511,6071,0072,3122,6362,9772,8852,775
CF_DDA 8531,0341,5862,2162,6402,4822,3492,4372,8282,943
ChangeInWorkingCapital -19337141-82-22921-227373230177
CF_DeferredTax 188770453107441386353-102323166
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000515582103109100104
Cash Flow from Others 19-991411517-77-29-16028204
Cash Flow from Operations 1,1723,1623,6453,9104,4315,2065,1855,6346,3946,369

Directv Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 572948698661710816569810615781
CF_DDA 618626678731708711714729755745
ChangeInWorkingCapital -86132-587239177-7-8520564
CF_DeferredTax 23-14395-134203428431150
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 19323425202120252534
Cash Flow from Others -37-9489119-152-28210-3661-31
Cash Flow from Operations 1,1091,5011,5361,4741,3452,0391,5901,4741,6621,643
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