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Esterline Technologies Corp (NYSE:ESL)
Cash Flow from Operations
$167 Mil (TTM As of Sep. 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 Sep. 2016, Esterline Technologies Corp's Net Income From Continuing Operations was $52 Mil. Its DDA was $27 Mil. Its Change In Working Capital was $-14 Mil. Its cash flow from deferred tax was $-5 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $1 Mil. And its Cash Flow from Others was $-13 Mil. In all, Esterline Technologies Corp's Cash Flow from Operations for the three months ended in Sep. 2016 was $49 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.

Esterline Technologies Corp's Cash Flow from Operations for the fiscal year that ended in Sep. 2016 is calculated as:

Esterline Technologies Corp's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Esterline Technologies Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 40.652 (Dec. 2015 ) + 39.232 (Mar. 2016 ) + 38.728 (Jun. 2016 ) + 48.546 (Sep. 2016 ) = $167 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.

Esterline Technologies Corp's net income from continuing operations for the three months ended in Sep. 2016 was $52 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

Esterline Technologies Corp's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $27 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.

Esterline Technologies Corp's change in working capital for the three months ended in Sep. 2016 was $-14 Mil. It means Esterline Technologies Corp's working capital declined by $14 Mil from Jun. 2016 to Sep. 2016 .

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

Esterline Technologies Corp's cash flow from deferred tax for the three months ended in Sep. 2016 was $-5 Mil.

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

Esterline Technologies Corp's cash flow from discontinued operations for the three months ended in Sep. 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.

Esterline Technologies Corp's stock based compensation for the three months ended in Sep. 2016 was $1 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).

Esterline Technologies Corp's cash flow from others for the three months ended in Sep. 2016 was $-13 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 local exchange's currency.

Esterline Technologies Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Sep14Sep15Sep16
NetIncomeFromContinuingOperations 9212110614213311416610388103
CF_DDA 5666727285108112116103100
ChangeInWorkingCapital -18-5811-98-44-12-53-7-35
CF_DeferredTax -15-23-11-10-12-21-22-15-18-22
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 097781010131213
Cash Flow from Others 74-28-22-2928-353158
Cash Flow from Operations 122119157180192194251216194167

Esterline Technologies Corp Quarterly Data

Sep14Oct14Jan15Apr15Jul15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations -3-382029315153052
CF_DDA 29292525272624252527
ChangeInWorkingCapital 117-30-1-4297-3-25-14
CF_DeferredTax -2-2-1-6-2-9-6-4-7-5
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 3333333451
Cash Flow from Others 5438-011-497312-13
Cash Flow from Operations 8282550498941393949
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