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Nielsen NV (NYSE:NLSN)
Cash Flow from Operations
$1,012 Mil (TTM As of Sep. 2014)

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 Sep. 2014, Nielsen NV's Net Income From Continuing Operations was $92 Mil. Its DDA was $139 Mil. Its Change In Working Capital was $96 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $65 Mil. In all, Nielsen NV's Cash Flow from Operations for the three months ended in Sep. 2014 was $392 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.

Nielsen NV's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

Nielsen NV's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Nielsen NV Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 320 (Dec. 2013 ) + 90 (Mar. 2014 ) + 210 (Jun. 2014 ) + 392 (Sep. 2014 ) = $1,012 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.

Nielsen NV's net income from continuing operations for the three months ended in Sep. 2014 was $92 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

Nielsen NV's depreciation, depletion and amortization for the three months ended in Sep. 2014 was $139 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.

Nielsen NV's change in working capital for the three months ended in Sep. 2014 was $96 Mil. It means Nielsen NV's working capital increased by $96 Mil from Jun. 2014 to Sep. 2014 .

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

Nielsen NV's cash flow from deferred tax for the three months ended in Sep. 2014 was $0 Mil.

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

Nielsen NV's cash flow from discontinued operations for the three months ended in Sep. 2014 was $0 Mil.

6. 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).

Nielsen NV's cash flow from others for the three months ended in Sep. 2014 was $65 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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.

Nielsen NV Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 0000-595-46613785272736
CF_DDA 0000504562558529520521
ChangeInWorkingCapital 0000702235-97-233-48
CF_DeferredTax 0000-126-304-183-12447-107
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 0000464703-4248178-201
Cash Flow from Operations 0000317517543641784901

Nielsen NV Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 1301063634426131145557692
CF_DDA 127130132128130117146141145139
ChangeInWorkingCapital -29982-16-149-606596-147-7396
CF_DeferredTax 0047000-107000
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 1581314141-290840416265
Cash Flow from Operations 1163313405420632132090210392
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