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HP Inc (NYSE:HPQ)
Cash Flow from Operations
$4,099 Mil (TTM As of Jan. 2017)

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 Jan. 2017, HP Inc's Net Income From Continuing Operations was $611 Mil. Its DDA was $84 Mil. Its Change In Working Capital was $-152 Mil. Its cash flow from deferred tax was $67 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $75 Mil. And its Cash Flow from Others was $82 Mil. In all, HP Inc's Cash Flow from Operations for the three months ended in Jan. 2017 was $767 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.

HP Inc's Cash Flow from Operations for the fiscal year that ended in Oct. 2016 is calculated as:

HP Inc's Cash Flow from Operations for the quarter that ended in Jan. 2017 is

HP Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2017 was 1569 (Apr. 2016 ) + 1065 (Jul. 2016 ) + 698 (Oct. 2016 ) + 767 (Jan. 2017 ) = $4,099 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.

HP Inc's net income from continuing operations for the three months ended in Jan. 2017 was $611 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

HP Inc's depreciation, depletion and amortization for the three months ended in Jan. 2017 was $84 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.

HP Inc's change in working capital for the three months ended in Jan. 2017 was $-152 Mil. It means HP Inc's working capital declined by $152 Mil from Oct. 2016 to Jan. 2017 .

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

HP Inc's cash flow from deferred tax for the three months ended in Jan. 2017 was $67 Mil.

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

HP Inc's cash flow from discontinued operations for the three months ended in Jan. 2017 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.

HP Inc's stock based compensation for the three months ended in Jan. 2017 was $75 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).

HP Inc's cash flow from others for the three months ended in Jan. 2017 was $82 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.

HP Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
NetIncomeFromContinuingOperations 7,2648,3297,6608,7617,074-12,6505,1135,0134,5542,496
CF_DDA 2,7053,3564,7804,8204,9845,0954,6114,3344,061332
ChangeInWorkingCapital -1,2861,077-1,141-3,888-1,889-2,77127552-4,413-337
CF_DeferredTax 415773379197166-711-410-34-700401
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0606635668685635500560709182
Cash Flow from Others 5174501,0661,3641,61920,9731,7671,9082,279156
Cash Flow from Operations 9,61514,59113,37911,92212,63910,57111,60812,3336,4903,230

HP Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
NetIncomeFromContinuingOperations 1,3301,3661,0118541,323592629783492611
CF_DDA 1,0751,0281,0031,0231,0077985858384
ChangeInWorkingCapital -600-1,901-1,359-1,760607-1,410723-4354-152
CF_DeferredTax 95-173173898-1,59852674378-57767
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1281871291602336140394275
Cash Flow from Others 6732375074981,0375018-21630482
Cash Flow from Operations 2,7017441,4641,6732,609-1021,5691,065698767
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