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Medtronic PLC (NYSE:MDT)
Cash Flow from Operations
$5,952 Mil (TTM As of Jul. 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 Jul. 2016, Medtronic PLC's Net Income From Continuing Operations was $929 Mil. Its DDA was $737 Mil. Its Change In Working Capital was $-216 Mil. Its cash flow from deferred tax was $32 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $79 Mil. And its Cash Flow from Others was $-11 Mil. In all, Medtronic PLC's Cash Flow from Operations for the three months ended in Jul. 2016 was $1,550 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.

Medtronic PLC's Cash Flow from Operations for the fiscal year that ended in Apr. 2016 is calculated as:

Medtronic PLC's Cash Flow from Operations for the quarter that ended in Jul. 2016 is

Medtronic PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Jul. 2016 was 1279 (Oct. 2015 ) + 1797 (Jan. 2016 ) + 1326 (Apr. 2016 ) + 1550 (Jul. 2016 ) = $5,952 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.

Medtronic PLC's net income from continuing operations for the three months ended in Jul. 2016 was $929 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

Medtronic PLC's depreciation, depletion and amortization for the three months ended in Jul. 2016 was $737 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.

Medtronic PLC's change in working capital for the three months ended in Jul. 2016 was $-216 Mil. It means Medtronic PLC's working capital declined by $216 Mil from Apr. 2016 to Jul. 2016 .

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

Medtronic PLC's cash flow from deferred tax for the three months ended in Jul. 2016 was $32 Mil.

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

Medtronic PLC's cash flow from discontinued operations for the three months ended in Jul. 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.

Medtronic PLC's stock based compensation for the three months ended in Jul. 2016 was $79 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).

Medtronic PLC's cash flow from others for the three months ended in Jul. 2016 was $-11 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.

Medtronic PLC Annual Data

Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15Apr16
NetIncomeFromContinuingOperations 2,8022,2312,0703,0993,0963,6173,4673,0652,6753,538
CF_DDA 5836376997728048338198501,3062,820
ChangeInWorkingCapital -448-6259242-1,012183602181,564-1,089
CF_DeferredTax -236-49-17114415314-7-207-926-460
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0217237225198161152145439375
Cash Flow from Others 278459784-351502-173151888-15634
Cash Flow from Operations 2,9793,4893,8784,1313,7414,4704,9424,9594,9025,218

Medtronic PLC Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
NetIncomeFromContinuingOperations 448871828977-18205201,0951,103929
CF_DDA 215215208206677701696715708737
ChangeInWorkingCapital 29-148135311,168-76013799-565-216
CF_DeferredTax -14698-15941-906-159-115-17-16932
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 3734483332496113828479
Cash Flow from Others 745-760-25-21650118-72-177165-11
Cash Flow from Operations 1,3283109131,7671,9128161,2791,7971,3261,550
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