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GuruFocus has detected 1 Warning Sign with Express Scripts Holding Co $ESRX.
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Express Scripts Holding Co (NAS:ESRX)
Cash Flow from Operations
$4,919 Mil (TTM As of Dec. 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 Dec. 2016, Express Scripts Holding Co's Net Income From Continuing Operations was $1,440 Mil. Its DDA was $543 Mil. Its Change In Working Capital was $421 Mil. Its cash flow from deferred tax was $-163 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $25 Mil. And its Cash Flow from Others was $-17 Mil. In all, Express Scripts Holding Co's Cash Flow from Operations for the three months ended in Dec. 2016 was $2,249 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 Holding Co's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Express Scripts Holding Co's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

Express Scripts Holding Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 751.2 (Mar. 2016 ) + 438.9 (Jun. 2016 ) + 1480.4 (Sep. 2016 ) + 2248.9 (Dec. 2016 ) = $4,919 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.

Express Scripts Holding Co's net income from continuing operations for the three months ended in Dec. 2016 was $1,440 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 Holding Co's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $543 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 Holding Co's change in working capital for the three months ended in Dec. 2016 was $421 Mil. It means Express Scripts Holding Co's working capital increased by $421 Mil from Sep. 2016 to Dec. 2016 .

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

Express Scripts Holding Co's cash flow from deferred tax for the three months ended in Dec. 2016 was $-163 Mil.

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

Express Scripts Holding Co's cash flow from discontinued operations for the three months ended in Dec. 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.

Express Scripts Holding Co's stock based compensation for the three months ended in Dec. 2016 was $25 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).

Express Scripts Holding Co's cash flow from others for the three months ended in Dec. 2016 was $-17 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.

Express Scripts Holding Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 5687808271,2051,2791,3621,9262,0352,5003,428
CF_DDA 98981072452531,8712,4472,2432,3592,155
ChangeInWorkingCapital 77946294763781,426775599381-236
CF_DeferredTax 43452110138-389-574-431-462-497
Cash Flow from Disc. Op. 00000-4313000
Stock Based Compensation 040455049410165111117107
Cash Flow from Others 815811332971444-8-46-36
Cash Flow from Operations 8271,1031,7722,1172,1934,7824,7584,5494,8484,919

Express Scripts Holding Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 5895894476066677795327277291,440
CF_DDA 547585557588583631525548538543
ChangeInWorkingCapital -6861,871-603-234-4081,626-218-763323421
CF_DeferredTax -61-158-114-80-77-192-113-100-122-163
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 28292728323028272725
Cash Flow from Others 189-32-8-5-1-4-1-15-17
Cash Flow from Operations 4352,9242819007932,8747514391,4802,249
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