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eBay Inc (NAS:EBAY)
Cash Flow from Operations
$5,316 Mil (TTM As of Jun. 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 Jun. 2015, eBay Inc's Net Income From Continuing Operations was $727 Mil. Its DDA was $253 Mil. Its Change In Working Capital was $-200 Mil. Its cash flow from deferred tax was $59 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $185 Mil. And its Cash Flow from Others was $132 Mil. In all, eBay Inc's Cash Flow from Operations for the three months ended in Jun. 2015 was $1,156 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.

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

eBay Inc's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

eBay Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 1368 (Sep. 2014 ) + 1641 (Dec. 2014 ) + 1151 (Mar. 2015 ) + 1156 (Jun. 2015 ) = $5,316 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.

eBay Inc's net income from continuing operations for the three months ended in Jun. 2015 was $727 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

eBay Inc's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $253 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.

eBay Inc's change in working capital for the three months ended in Jun. 2015 was $-200 Mil. It means eBay Inc's working capital declined by $200 Mil from Mar. 2015 to Jun. 2015 .

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

eBay Inc's cash flow from deferred tax for the three months ended in Jun. 2015 was $59 Mil.

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

eBay Inc's cash flow from discontinued operations for the three months ended in Jun. 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.

eBay Inc's stock based compensation for the three months ended in Jun. 2015 was $185 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).

eBay Inc's cash flow from others for the three months ended in Jun. 2015 was $132 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.

eBay Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 1,0821,1263481,7792,3891,8013,2292,6092,85646
CF_DDA 4105456027208117629401,2001,4001,490
ChangeInWorkingCapital -4205-172-148221-899-320-756-354-185
CF_DeferredTax 92-228-123-207-17935017-35-312,808
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000353395381457488609675
Cash Flow from Others 4306011,987384-729350-1,049332515843
Cash Flow from Operations 2,0102,2482,6412,8822,9082,7463,2743,8384,9955,677

eBay Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 677640689850-2,3267515981,023626727
CF_DDA 329347357367382233505370381253
ChangeInWorkingCapital -805-227127551-343248-18191-218-200
CF_DeferredTax 450-103-89-2893,108-65-47-188-8759
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 111161140197149158181187185185
Cash Flow from Others 17519311037204169312158264132
Cash Flow from Operations 9371,0111,3341,7131,1741,4941,3681,6411,1511,156
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