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Maxim Integrated Products Inc (NAS:MXIM)
Cash Flow from Operations
$690 Mil (TTM As of Mar. 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 Mar. 2016, Maxim Integrated Products Inc's Net Income From Continuing Operations was $140 Mil. Its DDA was $47 Mil. Its Change In Working Capital was $20 Mil. Its cash flow from deferred tax was $-0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $18 Mil. And its Cash Flow from Others was $-56 Mil. In all, Maxim Integrated Products Inc's Cash Flow from Operations for the three months ended in Mar. 2016 was $168 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.

Maxim Integrated Products Inc's Cash Flow from Operations for the fiscal year that ended in Jun. 2015 is calculated as:

Maxim Integrated Products Inc's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

Maxim Integrated Products Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 221.79 (Jun. 2015 ) + 117.339 (Sep. 2015 ) + 182.489 (Dec. 2015 ) + 167.986 (Mar. 2016 ) = $690 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.

Maxim Integrated Products Inc's net income from continuing operations for the three months ended in Mar. 2016 was $140 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

Maxim Integrated Products Inc's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $47 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.

Maxim Integrated Products Inc's change in working capital for the three months ended in Mar. 2016 was $20 Mil. It means Maxim Integrated Products Inc's working capital increased by $20 Mil from Dec. 2015 to Mar. 2016 .

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

Maxim Integrated Products Inc's cash flow from deferred tax for the three months ended in Mar. 2016 was $-0 Mil.

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

Maxim Integrated Products Inc's cash flow from discontinued operations for the three months ended in Mar. 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.

Maxim Integrated Products Inc's stock based compensation for the three months ended in Mar. 2016 was $18 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).

Maxim Integrated Products Inc's cash flow from others for the three months ended in Mar. 2016 was $-56 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.

Maxim Integrated Products Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
NetIncomeFromContinuingOperations 38828631810125489387455355206
CF_DDA 90105162205168205211207245299
ChangeInWorkingCapital -40-40-120-890-98753011161
CF_DeferredTax -59-104-15202291403125-32-73
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000196789490848579
Cash Flow from Others 240369175-160231-371712120
Cash Flow from Operations 619617519446491861757818776694

Maxim Integrated Products Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 4412385100-727999-7267140
CF_DDA 646564647271931024947
ChangeInWorkingCapital 1123463-85402285-323320
CF_DeferredTax -12-36-106-31-16-32-5319-0
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 23222222211918171818
Cash Flow from Others 2510101437-40155-5-56
Cash Flow from Operations 234212234117173182222117182168
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