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General Dynamics Corp (NYSE:GD)
Cash Flow from Operations
$3,782 Mil (TTM As of Jun. 2015)

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 Jun. 2015, General Dynamics Corp's Net Income From Continuing Operations was $752 Mil. Its DDA was $119 Mil. Its Change In Working Capital was $-303 Mil. Its cash flow from deferred tax was $29 Mil. Its Cash Flow from Discontinued Operations was $-8 Mil. Its Stock Based Compensation was $31 Mil. And its Cash Flow from Others was $-17 Mil. In all, General Dynamics Corp's Cash Flow from Operations for the three months ended in Jun. 2015 was $603 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.

General Dynamics Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

General Dynamics Corp's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

General Dynamics Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 2504 (Sep. 2014 ) + -70 (Dec. 2014 ) + 745 (Mar. 2015 ) + 603 (Jun. 2015 ) = $3,782 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.

General Dynamics Corp's net income from continuing operations for the three months ended in Jun. 2015 was $752 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

General Dynamics Corp's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $119 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.

General Dynamics Corp's change in working capital for the three months ended in Jun. 2015 was $-303 Mil. It means General Dynamics Corp's working capital declined by $303 Mil from Mar. 2015 to Jun. 2015 .

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

General Dynamics Corp's cash flow from deferred tax for the three months ended in Jun. 2015 was $29 Mil.

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

General Dynamics Corp's cash flow from discontinued operations for the three months ended in Jun. 2015 was $-8 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.

General Dynamics Corp's stock based compensation for the three months ended in Jun. 2015 was $31 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).

General Dynamics Corp's cash flow from others for the three months ended in Jun. 2015 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 own currency.

General Dynamics Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 1,4611,8562,0722,4782,4072,6242,552-3322,4862,673
CF_DDA 327384423447562569592620525496
ChangeInWorkingCapital 139-208316112-588-36787222-238592
CF_DeferredTax 141451221962275614-148104136
Cash Flow from Disc. Op. 00000-20-2-1836
Stock Based Compensation 396186105117118128114120128
Cash Flow from Others -51-10-94-227115-12-1622,213132-333
Cash Flow from Operations 2,0562,1282,9253,1112,8402,9863,2112,6873,1113,728

General Dynamics Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 571640651624596540696841716752
CF_DDA 142123127133125127124120124119
ChangeInWorkingCapital -269-282-49362-213-41,842-1,033-91-303
CF_DeferredTax 113645336283042-829
Cash Flow from Disc. Op. -3-7-2-6-327210-8-8
Stock Based Compensation 31302930273730344031
Cash Flow from Others 2143-294362-146117-220-84-28-17
Cash Flow from Operations 5045834661,5584228722,504-70745603
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