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Garmin Ltd (NAS:GRMN)
Cash Flow from Operations
$328 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, Garmin Ltd's Net Income From Continuing Operations was $88 Mil. Its DDA was $20 Mil. Its Change In Working Capital was $7 Mil. Its cash flow from deferred tax was $4 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $8 Mil. And its Cash Flow from Others was $2 Mil. In all, Garmin Ltd's Cash Flow from Operations for the three months ended in Mar. 2016 was $129 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.

Garmin Ltd's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Garmin Ltd's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

Garmin Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was -97.359 (Jun. 2015 ) + 137.835 (Sep. 2015 ) + 158.336 (Dec. 2015 ) + 129.387 (Mar. 2016 ) = $328 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.

Garmin Ltd's net income from continuing operations for the three months ended in Mar. 2016 was $88 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

Garmin Ltd's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $20 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.

Garmin Ltd's change in working capital for the three months ended in Mar. 2016 was $7 Mil. It means Garmin Ltd's working capital increased by $7 Mil from Dec. 2015 to Mar. 2016 .

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

Garmin Ltd's cash flow from deferred tax for the three months ended in Mar. 2016 was $4 Mil.

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

Garmin Ltd's cash flow from discontinued operations for the three months ended in Mar. 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.

Garmin Ltd's stock based compensation for the three months ended in Mar. 2016 was $8 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).

Garmin Ltd's cash flow from others for the three months ended in Mar. 2016 was $2 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.

Garmin Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 514855733704585521542612364456
CF_DDA 44647896959590797778
ChangeInWorkingCapital -194-234-61211-151792-67-58-345
CF_DeferredTax -35-5851-25-0-42-328906
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0223944404029232426
Cash Flow from Others 32332265663052-242658
Cash Flow from Operations 3626828621,094771822685630523280

Garmin Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 164119182-1472106713811913288
CF_DDA 18181918211919202020
ChangeInWorkingCapital -23-67-78195-108-59-2694-217
CF_DeferredTax 56-35235-4-61504
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 7676587578
Cash Flow from Others -21-113719-195113-26202
Cash Flow from Operations 1507116414214582-97138158129
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