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Emerson Electric Co (NYSE:EMR)
Cash Flow from Operations
$3,572 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, Emerson Electric Co's Net Income From Continuing Operations was $529 Mil. Its DDA was $207 Mil. Its Change In Working Capital was $-192 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $27 Mil. In all, Emerson Electric Co's Cash Flow from Operations for the three months ended in Dec. 2014 was $571 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.

Emerson Electric Co's Cash Flow from Operations for the fiscal year that ended in Sep. 2014 is calculated as:

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

Emerson Electric Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 575 (Mar. 2014 ) + 1018 (Jun. 2014 ) + 1408 (Sep. 2014 ) + 571 (Dec. 2014 ) = $3,572 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.

Emerson Electric Co's net income from continuing operations for the three months ended in Dec. 2014 was $529 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

Emerson Electric Co's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $207 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.

Emerson Electric Co's change in working capital for the three months ended in Dec. 2014 was $-192 Mil. It means Emerson Electric Co's working capital declined by $192 Mil from Sep. 2014 to Dec. 2014 .

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

Emerson Electric Co's cash flow from deferred tax for the three months ended in Dec. 2014 was $0 Mil.

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

Emerson Electric Co'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.

Emerson Electric Co's stock based compensation for the three months ended in Dec. 2014 was $0 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).

Emerson Electric Co's cash flow from others for the three months ended in Dec. 2014 was $27 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.

Emerson Electric Co Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
NetIncomeFromContinuingOperations 1,4221,8452,1362,4121,7712,2172,5302,0242,0662,184
CF_DDA 562607656707727816867823819831
ChangeInWorkingCapital 110-152137-22620309-301-34042114
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 9321287196-32-50137546722563
Cash Flow from Operations 2,1872,5123,0163,2933,0863,2923,2333,0533,6493,692

Emerson Electric Co Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 300466578214808477554738415529
CF_DDA 206206205201207209210204208207
ChangeInWorkingCapital 276-119-21878301-54-219116271-192
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 5298694971305930-4051427
Cash Flow from Operations 1,3116395749901,4466915751,0181,408571
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