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Nabors Industries Ltd (NYSE:NBR)
Cash Flow from Operations
$676 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, Nabors Industries Ltd's Net Income From Continuing Operations was $-188 Mil. Its DDA was $219 Mil. Its Change In Working Capital was $61 Mil. Its cash flow from deferred tax was $-57 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $9 Mil. And its Cash Flow from Others was $130 Mil. In all, Nabors Industries Ltd's Cash Flow from Operations for the three months ended in Jun. 2016 was $175 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.

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

Nabors Industries Ltd's Cash Flow from Operations for the quarter that ended in Jun. 2016 is

Nabors Industries Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 87.607 (Sep. 2015 ) + 251.545 (Dec. 2015 ) + 161.506 (Mar. 2016 ) + 175.166 (Jun. 2016 ) = $676 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.

Nabors Industries Ltd's net income from continuing operations for the three months ended in Jun. 2016 was $-188 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

Nabors Industries Ltd's depreciation, depletion and amortization for the three months ended in Jun. 2016 was $219 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.

Nabors Industries Ltd's change in working capital for the three months ended in Jun. 2016 was $61 Mil. It means Nabors Industries Ltd's working capital increased by $61 Mil from Mar. 2016 to Jun. 2016 .

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

Nabors Industries Ltd's cash flow from deferred tax for the three months ended in Jun. 2016 was $-57 Mil.

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

Nabors Industries Ltd'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.

Nabors Industries Ltd's stock based compensation for the three months ended in Jun. 2016 was $9 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).

Nabors Industries Ltd's cash flow from others for the three months ended in Jun. 2016 was $130 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.

Nabors Industries Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 1,021931551-2895249165147-669-372
CF_DDA 4215556406807949991,0581,1021,148972
ChangeInWorkingCapital -211-131-279472-202-35-633488-15
CF_DeferredTax 218-2517-21956-12-132-103-240-203
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0045107142118533747
Cash Flow from Others 37394886053512355162161,018427
Cash Flow from Operations 1,4861,3701,4631,6171,1071,4561,5631,4181,782857

Nabors Industries Ltd Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 5065106-891124-37-296-163-398-188
CF_DDA 282284287295281220241230217219
ChangeInWorkingCapital 97283133213-75-651125361
CF_DeferredTax 03-8-235-6974-106-102-67-57
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1199914169879
Cash Flow from Others 414-271,028-5612305166349130
Cash Flow from Operations 44540139853830721088252162175
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