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Kellogg Co (NYSE:K)
Cash Flow from Operations
$1,758 Mil (TTM As of Jun. 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 Jun. 2016, Kellogg Co's Net Income From Continuing Operations was $280 Mil. Its DDA was $136 Mil. Its Change In Working Capital was $201 Mil. Its cash flow from deferred tax was $7 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $15 Mil. And its Cash Flow from Others was $4 Mil. In all, Kellogg Co's Cash Flow from Operations for the three months ended in Jun. 2016 was $643 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.

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

Kellogg Co's Cash Flow from Operations for the quarter that ended in Jun. 2016 is

Kellogg Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 361 (Sep. 2015 ) + 749 (Dec. 2015 ) + 5 (Mar. 2016 ) + 643 (Jun. 2016 ) = $1,758 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.

Kellogg Co's net income from continuing operations for the three months ended in Jun. 2016 was $280 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

Kellogg Co's depreciation, depletion and amortization for the three months ended in Jun. 2016 was $136 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.

Kellogg Co's change in working capital for the three months ended in Jun. 2016 was $201 Mil. It means Kellogg Co's working capital increased by $201 Mil from Mar. 2016 to Jun. 2016 .

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

Kellogg Co's cash flow from deferred tax for the three months ended in Jun. 2016 was $7 Mil.

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

Kellogg Co's cash flow from discontinued operations for the three months ended in Jun. 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.

Kellogg Co's stock based compensation for the three months ended in Jun. 2016 was $15 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).

Kellogg Co's cash flow from others for the three months ended in Jun. 2016 was $4 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.

Kellogg Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 1,0041,1031,1461,2081,2808649611,808633614
CF_DDA 353372375384392369448532503534
ChangeInWorkingCapital -3910-81178-35778161242249267
CF_DeferredTax -44-69157-40266-93-159317-254-169
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000343751
Cash Flow from Others 13687-330-87-573377347-1,126625394
Cash Flow from Operations 1,4101,5031,2671,6431,0081,5951,7581,8071,7931,691

Kellogg Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 406295225-293227222205-40175280
CF_DDA 116119140128131138118147115136
ChangeInWorkingCapital -25519227258-220-795399-228201
CF_DeferredTax 45-27-16-256-2-9-50-10807
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00001011001515
Cash Flow from Others -44-20-537791466-7351-724
Cash Flow from Operations 2683865236161604213617495643
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