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Medtronic PLC (NYSE:MDT)
Cash Flow from Operations
$4,318 Mil (TTM As of Jan. 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 Jan. 2015, Medtronic PLC's Net Income From Continuing Operations was $977 Mil. Its DDA was $206 Mil. Its Change In Working Capital was $531 Mil. Its cash flow from deferred tax was $41 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $33 Mil. And its Cash Flow from Others was $-21 Mil. In all, Medtronic PLC's Cash Flow from Operations for the three months ended in Jan. 2015 was $1,767 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.

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

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

Medtronic PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2015 was 1328 (Apr. 2014 ) + 310 (Jul. 2014 ) + 913 (Oct. 2014 ) + 1767 (Jan. 2015 ) = $4,318 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 Jan. 2015 was $977 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 Jan. 2015 was $206 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 Jan. 2015 was $531 Mil. It means Medtronic PLC's working capital increased by $531 Mil from Oct. 2014 to Jan. 2015 .

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 Jan. 2015 was $41 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 Jan. 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.

Medtronic PLC's stock based compensation for the three months ended in Jan. 2015 was $33 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 Jan. 2015 was $-21 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

Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14
NetIncomeFromContinuingOperations 1,8042,5472,8022,2312,0703,0993,0963,6173,4673,065
CF_DDA 463544583637699772804833819850
ChangeInWorkingCapital -20-1,490-448-6259242-1,01218360218
CF_DeferredTax -143105-236-49-17114415314-7-207
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000217237225198161152145
Cash Flow from Others 715501278459784-351502-173151888
Cash Flow from Operations 2,8192,2072,9793,4893,8784,1313,7414,4704,9424,959

Medtronic PLC Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
NetIncomeFromContinuingOperations 646988969953902762448871828977
CF_DDA 199214209208213214215215208206
ChangeInWorkingCapital -261262144-159-9544329-909774531
CF_DeferredTax 68-13-4630-49-42-14698-15941
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 49343331443337344833
Cash Flow from Others 193-39-39-80212027451-786-21
Cash Flow from Operations 8941,4461,2709831,0361,6121,3283109131,767
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