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General Dynamics Corp (NYSE:GD)
Cash Flow from Operations
$2,193 Mil (TTM As of Mar. 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 Mar. 2016, General Dynamics Corp's Net Income From Continuing Operations was $717 Mil. Its DDA was $117 Mil. Its Change In Working Capital was $-497 Mil. Its cash flow from deferred tax was $20 Mil. Its Cash Flow from Discontinued Operations was $-6 Mil. Its Stock Based Compensation was $27 Mil. And its Cash Flow from Others was $61 Mil. In all, General Dynamics Corp's Cash Flow from Operations for the three months ended in Mar. 2016 was $439 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. 2015 is calculated as:

General Dynamics Corp's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

General Dynamics Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 603 (Jun. 2015 ) + 822 (Sep. 2015 ) + 329 (Dec. 2015 ) + 439 (Mar. 2016 ) = $2,193 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 Mar. 2016 was $717 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 Mar. 2016 was $117 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 Mar. 2016 was $-497 Mil. It means General Dynamics Corp's working capital declined by $497 Mil from Dec. 2015 to Mar. 2016 .

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 Mar. 2016 was $20 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 Mar. 2016 was $-6 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 Mar. 2016 was $27 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 Mar. 2016 was $61 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 1,7102,0802,4782,4072,6282,552-3322,4862,6732,965
CF_DDA 384423447562569592620556496482
ChangeInWorkingCapital -92244112-588-398-135222-247592-1,249
CF_DeferredTax 451221962275614-148104136167
Cash Flow from Disc. Op. 0000-2-2765-936-43
Stock Based Compensation 6186105117118128114120128110
Cash Flow from Others 20-30-228115131142,14496-33367
Cash Flow from Operations 2,1282,9253,1102,8402,9843,2382,6853,1063,7282,499

General Dynamics Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 495596540696701716752733764717
CF_DDA 133125127124120124119117122117
ChangeInWorkingCapital 362-213-41,842-1,033-91-30355-910-497
CF_DeferredTax 6436283042-829677920
Cash Flow from Disc. Op. -6-327210-8-8-15-12-6
Stock Based Compensation 30273730344031132627
Cash Flow from Others 480-146117-22056-28-17-14826061
Cash Flow from Operations 1,5584228722,504-70745603822329439
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