Switch to:
GuruFocus has detected 9 Warning Signs with Microsoft Corp $MSFT.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Microsoft Corp (NAS:MSFT)
Cash Flow from Operations
$36,673 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, Microsoft Corp's Net Income From Continuing Operations was $5,200 Mil. Its DDA was $2,166 Mil. Its Change In Working Capital was $-1,097 Mil. Its cash flow from deferred tax was $-587 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $767 Mil. And its Cash Flow from Others was $-156 Mil. In all, Microsoft Corp's Cash Flow from Operations for the three months ended in Dec. 2016 was $6,293 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.

Microsoft Corp's Cash Flow from Operations for the fiscal year that ended in Jun. 2016 is calculated as:

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

Microsoft Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 10367 (Mar. 2016 ) + 8464 (Jun. 2016 ) + 11549 (Sep. 2016 ) + 6293 (Dec. 2016 ) = $36,673 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.

Microsoft Corp's net income from continuing operations for the three months ended in Dec. 2016 was $5,200 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

Microsoft Corp's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $2,166 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.

Microsoft Corp's change in working capital for the three months ended in Dec. 2016 was $-1,097 Mil. It means Microsoft Corp's working capital declined by $1,097 Mil from Sep. 2016 to Dec. 2016 .

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

Microsoft Corp's cash flow from deferred tax for the three months ended in Dec. 2016 was $-587 Mil.

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

Microsoft Corp'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.

Microsoft Corp's stock based compensation for the three months ended in Dec. 2016 was $767 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).

Microsoft Corp's cash flow from others for the three months ended in Dec. 2016 was $-156 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.

Microsoft Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
NetIncomeFromContinuingOperations 14,06517,68114,56918,76023,15016,97821,86322,07412,19316,798
CF_DDA 1,4402,0562,5622,6732,7662,9673,7555,2125,9576,622
ChangeInWorkingCapital -961-2,435-178661-3,003-174-1,3756241,513-2,076
CF_DeferredTax 421935762-2202954-19-331224332
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1,5501,4791,7081,8912,1662,2442,4062,4462,5742,668
Cash Flow from Others 1,2811,896-3863081,9138,6572,2032,4777,2078,981
Cash Flow from Operations 17,79621,61219,03724,07326,99431,62628,83332,50229,66833,325

Microsoft Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 4,5405,8634,985-3,1954,9025,0183,7563,1224,6905,200
CF_DDA 1,4281,5211,5151,4931,4611,5441,7071,9101,8162,166
ChangeInWorkingCapital 4,507-2,4953,308-3,8072,597-2,0462,953-5,5804,957-1,097
CF_DeferredTax 301314253-64473-24735115515-587
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 646633641654674658672664703767
Cash Flow from Others -3,068-1,496-1,10112,348-8316919288,193-632-156
Cash Flow from Operations 8,3544,3409,6016,8498,8765,61810,3678,46411,5496,293
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK