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Eaton Corporation PLC (NYSE:ETN)
Cash Flow from Operations
$2,285 Mil (TTM As of Dec. 2013)

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. 2013, Eaton Corporation PLC's Net Income From Continuing Operations was $482 Mil. Its DDA was $257 Mil. Its Change In Working Capital was $489 Mil. Its cash flow from deferred tax was $-311 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $-45 Mil. In all, Eaton Corporation PLC's Cash Flow from Operations for the three months ended in Dec. 2013 was $872 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.

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

Eaton Corporation PLC's Cash Flow from Operations for the quarter that ended in Dec. 2013 is

Eaton Corporation PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 100 (Mar. 2013 ) + 609 (Jun. 2013 ) + 704 (Sep. 2013 ) + 872 (Dec. 2013 ) = $2,285 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.

Eaton Corporation PLC's net income from continuing operations for the three months ended in Dec. 2013 was $482 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

Eaton Corporation PLC's depreciation, depletion and amortization for the three months ended in Dec. 2013 was $257 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.

Eaton Corporation PLC's change in working capital for the three months ended in Dec. 2013 was $489 Mil. It means Eaton Corporation PLC's working capital increased by $489 Mil from Sep. 2013 to Dec. 2013 .

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

Eaton Corporation PLC's cash flow from deferred tax for the three months ended in Dec. 2013 was $-311 Mil.

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

Eaton Corporation PLC's cash flow from discontinued operations for the three months ended in Dec. 2013 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).

Eaton Corporation PLC's cash flow from others for the three months ended in Dec. 2013 was $-45 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.

Eaton Corporation PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 6488059509941,0703859371,3521,2201,873
CF_DDA 400409434469571573551556598997
ChangeInWorkingCapital -122-14616-144-199659-34-17463-324
CF_DeferredTax -133-2037-51-225-19126-113-155-311
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 4587-6-107224-18-198-373-6250
Cash Flow from Operations 8381,1351,4311,1611,4411,4081,2821,2481,6642,285

Eaton Corporation PLC Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
NetIncomeFromContinuingOperations 3671,352311382347180380497514482
CF_DDA 139137140138141179245245250257
ChangeInWorkingCapital 182116-388-56126381-546-101-166489
CF_DeferredTax 0-113000-155000-311
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -46-933-1615-810221-32106-45
Cash Flow from Operations 642559-98469606687100609704872
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