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National Grid PLC (NYSE:NGG)
Cash Flow from Operations
$7,647 Mil (TTM As of Sep. 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 six months ended in Sep. 2016, National Grid PLC's Net Income From Continuing Operations was $665 Mil. Its DDA was $1,137 Mil. Its Change In Working Capital was $71 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $17 Mil. And its Cash Flow from Others was $854 Mil. In all, National Grid PLC's Cash Flow from Operations for the six months ended in Sep. 2016 was $2,744 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.

National Grid PLC's Cash Flow from Operations for the fiscal year that ended in Mar. 2016 is calculated as:

Cash Flow from Operations(A: Mar. 2016 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=3695.15669516+2299.14529915+649.572649573+0
+Cash Flow from Discontinued Operations+Stock Based Compensation+Cash Flow from Others
+0+31.339031339+971.50997151
=7,647

National Grid PLC's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Cash Flow from Operations(Q: Sep. 2016 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=664.914586071+1136.66228647+70.9592641261+0
+Cash Flow from Discontinued Operations+Stock Based Compensation+Cash Flow from Others
+0+17.0827858081+854.139290407
=2,744

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. National Grid PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was $7,647 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.

National Grid PLC's net income from continuing operations for the six months ended in Sep. 2016 was $665 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

National Grid PLC's depreciation, depletion and amortization for the six months ended in Sep. 2016 was $1,137 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.

National Grid PLC's change in working capital for the six months ended in Sep. 2016 was $71 Mil. It means National Grid PLC's working capital increased by $71 Mil from Mar. 2016 to Sep. 2016 .

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

National Grid PLC's cash flow from deferred tax for the six months ended in Sep. 2016 was $0 Mil.

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

National Grid PLC's cash flow from discontinued operations for the six months ended in Sep. 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.

National Grid PLC's stock based compensation for the six months ended in Sep. 2016 was $17 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).

National Grid PLC's cash flow from others for the six months ended in Sep. 2016 was $854 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.

National Grid PLC Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
NetIncomeFromContinuingOperations 2,5493,1501,3062,0923,4943,0363,2494,0933,0063,695
CF_DDA 1,6951,9881,5891,7892,0112,0282,0532,3542,2332,299
ChangeInWorkingCapital 247-30076649-342-557-1,314-98450650
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 347000000000
Stock Based Compensation 29363138403830333031
Cash Flow from Others 8881,4561,8312,2332,6452,1441,6382941,765972
Cash Flow from Operations 5,7556,3304,8346,8017,8486,6905,6566,6767,4847,647

National Grid PLC Semi-Annual Data

Mar12Sep12Mar13Sep13Mar14Sep14Mar15Sep15Mar16Sep16
NetIncomeFromContinuingOperations 1,7751,5811,7711,9632,0421,4721,6551,6092,201665
CF_DDA 1,0491,0661,0561,0971,2081,1741,1551,2211,1651,137
ChangeInWorkingCapital -161-642-713-49642036811256712371
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 17211113201516181417
Cash Flow from Others 1,264706977129159923918454550854
Cash Flow from Operations 3,9452,7323,1012,7063,8493,9533,8573,8704,0532,744
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