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EMC Corp (NYSE:EMC)
Cash Flow from Operations
\$5,813 Mil (TTM As of Jun. 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 Jun. 2016, EMC Corp's Net Income From Continuing Operations was \$630 Mil. Its DDA was \$502 Mil. Its Change In Working Capital was \$130 Mil. Its cash flow from deferred tax was \$-10 Mil. Its Cash Flow from Discontinued Operations was \$0 Mil. Its Stock Based Compensation was \$303 Mil. And its Cash Flow from Others was \$53 Mil. In all, EMC Corp's Cash Flow from Operations for the three months ended in Jun. 2016 was \$1,608 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.

EMC Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

 Cash Flow from Operations (A: Dec. 2015 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 2172 + 1907 + 405 + -235 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 1091 + 46 = 5,386

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

 Cash Flow from Operations (Q: Jun. 2016 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 630 + 502 + 130 + -10 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 303 + 53 = 1,608

EMC Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 1403 (Sep. 2015 ) + 1870 (Dec. 2015 ) + 932 (Mar. 2016 ) + 1608 (Jun. 2016 ) = \$5,813 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.

EMC Corp's net income from continuing operations for the three months ended in Jun. 2016 was \$630 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

EMC Corp's depreciation, depletion and amortization for the three months ended in Jun. 2016 was \$502 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.

EMC Corp's change in working capital for the three months ended in Jun. 2016 was \$130 Mil. It means EMC Corp's working capital increased by \$130 Mil from Mar. 2016 to Jun. 2016 .

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

EMC Corp's cash flow from deferred tax for the three months ended in Jun. 2016 was \$-10 Mil.

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

EMC Corp's cash flow from discontinued operations for the three months ended in Jun. 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.

EMC Corp's stock based compensation for the three months ended in Jun. 2016 was \$303 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).

EMC Corp's cash flow from others for the three months ended in Jun. 2016 was \$53 Mil.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

EMC Corp Annual Data

 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 NetIncomeFromContinuingOperations 1,228 1,666 1,346 1,122 1,970 2,609 2,886 3,093 2,894 2,172 CF_DDA 764 917 1,058 1,073 1,168 1,422 1,528 1,665 1,864 1,907 ChangeInWorkingCapital -211 453 516 450 965 1,071 1,244 1,439 1,250 405 CF_DeferredTax -132 -68 5 27 -50 -19 -118 -202 -396 -235 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 0 0 501 601 668 823 895 935 1,031 1,091 Cash Flow from Others 492 159 140 62 -172 -237 -173 -7 -120 46 Cash Flow from Operations 2,140 3,127 3,565 3,334 4,549 5,669 6,262 6,923 6,523 5,386

EMC Corp Quarterly Data

 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 NetIncomeFromContinuingOperations 432 622 627 1,213 291 520 528 833 297 630 CF_DDA 442 461 467 494 470 472 481 484 483 502 ChangeInWorkingCapital 275 53 441 481 87 -183 80 421 -139 130 CF_DeferredTax -47 -121 -78 -150 -20 -28 9 -196 -19 -10 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 239 259 272 261 245 257 283 306 304 303 Cash Flow from Others -3 -20 -29 -68 7 -5 22 22 6 53 Cash Flow from Operations 1,338 1,254 1,700 2,231 1,080 1,033 1,403 1,870 932 1,608
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