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GlaxoSmithKline PLC (NYSE:GSK)
Cash Flow from Operations
$5,087 Mil (TTM As of Sep. 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 Sep. 2015, GlaxoSmithKline PLC's Net Income From Continuing Operations was $992 Mil. Its DDA was $359 Mil. Its Change In Working Capital was $-452 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-161 Mil. In all, GlaxoSmithKline PLC's Cash Flow from Operations for the three months ended in Sep. 2015 was $738 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.

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

Cash Flow from Operations(A: Dec. 2014 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=4430.3599374+2322.37871674+1034.42879499+0
+Cash Flow from Discontinued Operations+Stock Based Compensation+Cash Flow from Others
+0+519.561815336+-206.572769953
=8,100

GlaxoSmithKline PLC's Cash Flow from Operations for the quarter that ended in Sep. 2015 is

GlaxoSmithKline PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 3458.52895149 (Dec. 2014 ) + 553.064275037 (Mar. 2015 ) + 338.00623053 (Jun. 2015 ) + 737.73006135 (Sep. 2015 ) = $5,087 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.

GlaxoSmithKline PLC's net income from continuing operations for the three months ended in Sep. 2015 was $992 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

GlaxoSmithKline PLC's depreciation, depletion and amortization for the three months ended in Sep. 2015 was $359 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.

GlaxoSmithKline PLC's change in working capital for the three months ended in Sep. 2015 was $-452 Mil. It means GlaxoSmithKline PLC's working capital declined by $452 Mil from Jun. 2015 to Sep. 2015 .

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

GlaxoSmithKline PLC's cash flow from deferred tax for the three months ended in Sep. 2015 was $0 Mil.

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

GlaxoSmithKline PLC's cash flow from discontinued operations for the three months ended in Sep. 2015 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.

GlaxoSmithKline PLC's stock based compensation for the three months ended in Sep. 2015 was $0 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).

GlaxoSmithKline PLC's cash flow from others for the three months ended in Sep. 2015 was $-161 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.

GlaxoSmithKline PLC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 8,40310,79810,7167,0019,2032,8918,5157,5579,2114,430
CF_DDA 1,5771,8822,0631,8292,5362,6192,2202,3342,3142,322
ChangeInWorkingCapital -544-1,460-1,707709-2454,332-2,763-3,775921,034
CF_DeferredTax 00000-2,861-2,282000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000358291279309355522520
Cash Flow from Others 959-2,6621,3618089453,3433,752596-319-207
Cash Flow from Operations 10,3968,55812,43310,70612,72910,6049,7507,06811,8208,100

GlaxoSmithKline PLC Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
NetIncomeFromContinuingOperations 1,6781,6064,1001,1941,1886271,60412,015179992
CF_DDA 8451,162-6919526356212435781,129359
ChangeInWorkingCapital 156156807-801-5535781,745259-75-452
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -31378-63719427248-133-12,299-896-161
Cash Flow from Operations 2,6493,3023,5791,5401,2962,0733,459553338738
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