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Illumina Inc (NAS:ILMN)
Cash Flow from Operations
$687 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, Illumina Inc's Net Income From Continuing Operations was $108 Mil. Its DDA was $37 Mil. Its Change In Working Capital was $49 Mil. Its cash flow from deferred tax was $36 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $27 Mil. And its Cash Flow from Others was $23 Mil. In all, Illumina Inc's Cash Flow from Operations for the three months ended in Dec. 2016 was $280 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.

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

Illumina Inc's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

Illumina Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 39.738 (Mar. 2016 ) + 217.047 (Jun. 2016 ) + 150.3 (Sep. 2016 ) + 280.153 (Dec. 2016 ) = $687 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.

Illumina Inc's net income from continuing operations for the three months ended in Dec. 2016 was $108 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

Illumina Inc's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $37 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.

Illumina Inc's change in working capital for the three months ended in Dec. 2016 was $49 Mil. It means Illumina Inc's working capital increased by $49 Mil from Sep. 2016 to Dec. 2016 .

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

Illumina Inc's cash flow from deferred tax for the three months ended in Dec. 2016 was $36 Mil.

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

Illumina Inc's cash flow from discontinued operations for the three months ended in Dec. 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.

Illumina Inc's stock based compensation for the three months ended in Dec. 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).

Illumina Inc's cash flow from others for the three months ended in Dec. 2016 was $23 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.

Illumina Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations -278507212587151125353457428
CF_DDA 16283142686598113126141
ChangeInWorkingCapital 13-88-16-235-18153-56-38-45
CF_DeferredTax -1132304919-22-371008194
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 04861729294106153133129
Cash Flow from Others 31719-6-125721-59-161-99-59
Cash Flow from Operations 5688172273358292386501660687

Illumina Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 9315313710211610387116117108
CF_DDA 27303031333333343637
ChangeInWorkingCapital -4-30-98-7264-5714-5049
CF_DeferredTax -16953273-3-6343036
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 45383233323535323527
Cash Flow from Others -14-121-87-15-59-52-13-1723
Cash Flow from Operations 1461416717118124040217150280
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