Switch to:
GuruFocus has detected 3 Warning Signs with General Dynamics Corp $GD.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
General Dynamics Corp (NYSE:GD)
Cash Flow from Operations
$2,198 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, General Dynamics Corp's Net Income From Continuing Operations was $797 Mil. Its DDA was $112 Mil. Its Change In Working Capital was $-70 Mil. Its cash flow from deferred tax was $158 Mil. Its Cash Flow from Discontinued Operations was $-10 Mil. Its Stock Based Compensation was $24 Mil. And its Cash Flow from Others was $-185 Mil. In all, General Dynamics Corp's Cash Flow from Operations for the three months ended in Dec. 2016 was $826 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. 2016 is calculated as:

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

General Dynamics Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 439 (Mar. 2016 ) + 434 (Jun. 2016 ) + 499 (Sep. 2016 ) + 826 (Dec. 2016 ) = $2,198 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.

General Dynamics Corp's net income from continuing operations for the three months ended in Dec. 2016 was $797 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 Dec. 2016 was $112 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 Dec. 2016 was $-70 Mil. It means General Dynamics Corp's working capital declined by $70 Mil from Sep. 2016 to Dec. 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 Dec. 2016 was $158 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 Dec. 2016 was $-10 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 Dec. 2016 was $24 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 Dec. 2016 was $-185 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.

General Dynamics Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 2,0802,4782,4072,6282,552-3812,3572,5332,9652,955
CF_DDA 423447562569592590525496482454
ChangeInWorkingCapital 316112-588-36787224-238609-1,218-1,636
CF_DeferredTax 1221962275614-148115136167376
Cash Flow from Disc. Op. 000-2-2765-1836-43-54
Stock Based Compensation 86105117118128114120128110100
Cash Flow from Others -102-227115-16-1082,142250-1101443
Cash Flow from Operations 2,9253,1112,8402,9863,2382,6063,1113,8282,6072,198

General Dynamics Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 696701716752733764717758683797
CF_DDA 124120124119117122117115110112
ChangeInWorkingCapital 1,842-1,016-91-303-164-660-497-621-448-70
CF_DeferredTax 3042-82967792042156158
Cash Flow from Disc. Op. 210-8-8-15-12-6-28-10-10
Stock Based Compensation 30344031132627242524
Cash Flow from Others -220139-2868861861144-17-185
Cash Flow from Operations 2,50430745688837337439434499826
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK