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Nielsen Holdings PLC (NYSE:NLSN)
Cash Flow from Operations
$1,124 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 three months ended in Sep. 2016, Nielsen Holdings PLC's Net Income From Continuing Operations was $132 Mil. Its DDA was $151 Mil. Its Change In Working Capital was $164 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $11 Mil. And its Cash Flow from Others was $-2 Mil. In all, Nielsen Holdings PLC's Cash Flow from Operations for the three months ended in Sep. 2016 was $456 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 Holdings PLC's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

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

Nielsen Holdings PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 371 (Dec. 2015 ) + 87 (Mar. 2016 ) + 210 (Jun. 2016 ) + 456 (Sep. 2016 ) = $1,124 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.

Nielsen Holdings PLC's net income from continuing operations for the three months ended in Sep. 2016 was $132 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 Holdings PLC's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $151 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 Holdings PLC's change in working capital for the three months ended in Sep. 2016 was $164 Mil. It means Nielsen Holdings PLC's working capital increased by $164 Mil from Jun. 2016 to Sep. 2016 .

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

Nielsen Holdings PLC's cash flow from deferred tax for the three 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.

Nielsen Holdings PLC's cash flow from discontinued operations for the three 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.

Nielsen Holdings PLC's stock based compensation for the three months ended in Sep. 2016 was $11 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).

Nielsen Holdings PLC's cash flow from others for the three months ended in Sep. 2016 was $-2 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.

Nielsen Holdings PLC Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 00-314-42813287272736381575
CF_DDA 00504562558529520521573574
ChangeInWorkingCapital 00702235-97-233-48-192-38
CF_DeferredTax 00-126-304-183-12447-107105213
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 001814182734474748
Cash Flow from Others 00165651-17219144-248179-193
Cash Flow from Operations 003175175436417849011,0931,179

Nielsen Holdings PLC Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 769215863116142254101114132
CF_DDA 145139148142146144142147152151
ChangeInWorkingCapital -7396-68-144-31160-23-175-76164
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1212111413129131311
Cash Flow from Others 5053152269-4-1117-2
Cash Flow from Operations 21039240110125345437187210456
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