Switch to:
GuruFocus has detected 6 Warning Signs with NextEra Energy Inc $NEE.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
NextEra Energy Inc (NYSE:NEE)
Cash Flow from Operations
$6,336 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, NextEra Energy Inc's Net Income From Continuing Operations was $1,017 Mil. Its DDA was $815 Mil. Its Change In Working Capital was $-336 Mil. Its cash flow from deferred tax was $464 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-918 Mil. In all, NextEra Energy Inc's Cash Flow from Operations for the three months ended in Dec. 2016 was $1,042 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.

NextEra Energy Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

NextEra Energy Inc's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

NextEra Energy Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 1545 (Mar. 2016 ) + 1725 (Jun. 2016 ) + 2024 (Sep. 2016 ) + 1042 (Dec. 2016 ) = $6,336 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.

NextEra Energy Inc's net income from continuing operations for the three months ended in Dec. 2016 was $1,017 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

NextEra Energy Inc's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $815 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.

NextEra Energy Inc's change in working capital for the three months ended in Dec. 2016 was $-336 Mil. It means NextEra Energy Inc's working capital declined by $336 Mil from Sep. 2016 to Dec. 2016 .

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

NextEra Energy Inc's cash flow from deferred tax for the three months ended in Dec. 2016 was $464 Mil.

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

NextEra Energy Inc'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.

NextEra Energy Inc's stock based compensation for the three months ended in Dec. 2016 was $0 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).

NextEra Energy Inc's cash flow from others for the three months ended in Dec. 2016 was $-918 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.

NextEra Energy Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 1,3121,6391,6151,9571,9231,9111,9082,4692,7623,005
CF_DDA 1,4791,6432,0042,0731,5671,5182,1632,5512,8313,077
ChangeInWorkingCapital -145-173-182237-502-190-52-538-92-223
CF_DeferredTax 4025692735115536828531,2051,1621,230
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 545-275753-94453371230-187-547-753
Cash Flow from Operations 3,5933,4034,4633,8344,0743,9925,1025,5006,1166,336

NextEra Energy Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 6648846507218815106375617901,017
CF_DDA 783692547737798749537742983815
ChangeInWorkingCapital -29476-27439191-4828-104189-336
CF_DeferredTax 255489262255331314214192360464
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 112-609-41-62278129334-298-918
Cash Flow from Operations 1,5201,5321,1811,7531,5791,6031,5451,7252,0241,042
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