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Express Scripts (NAS:ESRX)
Cash Flow from Operations
$4,560 Mil (TTM As of Sep. 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 Sep. 2014, Express Scripts's Net Income From Continuing Operations was $589 Mil. Its DDA was $547 Mil. Its Change In Working Capital was $-686 Mil. Its cash flow from deferred tax was $-61 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $46 Mil. In all, Express Scripts's Cash Flow from Operations for the three months ended in Sep. 2014 was $435 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.

Express Scripts's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

Express Scripts's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Express Scripts Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 2935.1 (Dec. 2013 ) + 454 (Mar. 2014 ) + 735.5 (Jun. 2014 ) + 435.1 (Sep. 2014 ) = $4,560 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.

Express Scripts's net income from continuing operations for the three months ended in Sep. 2014 was $589 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

Express Scripts's depreciation, depletion and amortization for the three months ended in Sep. 2014 was $547 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.

Express Scripts's change in working capital for the three months ended in Sep. 2014 was $-686 Mil. It means Express Scripts's working capital declined by $686 Mil from Jun. 2014 to Sep. 2014 .

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

Express Scripts's cash flow from deferred tax for the three months ended in Sep. 2014 was $-61 Mil.

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

Express Scripts's cash flow from discontinued operations for the three months ended in Sep. 2014 was $0 Mil.

6. 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).

Express Scripts's cash flow from others for the three months ended in Sep. 2014 was $46 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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.

Express Scripts Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 2784004745687808271,2051,2791,3621,926
CF_DDA 708410098981072452531,8712,447
ChangeInWorkingCapital 812235077946294763781,426775
CF_DeferredTax 1919843452110138-389-574
Cash Flow from Disc. Op. 00000000-4313
Cash Flow from Others 486727819815882146554169
Cash Flow from Operations 4967936598271,1031,7722,1172,1934,7824,758

Express Scripts Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 153415524380574454518335523589
CF_DDA 595610601600609614623553558547
ChangeInWorkingCapital -89-1621,53672-1,204-381,945-386-200-686
CF_DeferredTax 0-338-51-139-124-114-198-36-177-61
Cash Flow from Disc. Op. -41-65127-4-10000
Cash Flow from Others 11027711249-6412856-123146
Cash Flow from Operations 7287952,727963-1811,0402,935454736435
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