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Nielsen Holdings PLC (NYSE:NLSN)
Cash Flow from Operations
$1,179 Mil (TTM As of Sep. 2015)

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. 2015, Nielsen Holdings PLC's Net Income From Continuing Operations was $142 Mil. Its DDA was $144 Mil. Its Change In Working Capital was $160 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $12 Mil. And its Cash Flow from Others was $-6 Mil. In all, Nielsen Holdings PLC's Cash Flow from Operations for the three months ended in Sep. 2015 was $452 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. 2014 is calculated as:

Nielsen Holdings PLC's Cash Flow from Operations for the quarter that ended in Sep. 2015 is

Nielsen Holdings PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 401 (Dec. 2014 ) + 75 (Mar. 2015 ) + 251 (Jun. 2015 ) + 452 (Sep. 2015 ) = $1,179 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 Holdings PLC's net income from continuing operations for the three months ended in Sep. 2015 was $142 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. 2015 was $144 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. 2015 was $160 Mil. It means Nielsen Holdings PLC's working capital increased by $160 Mil from Jun. 2015 to Sep. 2015 .

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. 2015 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. 2015 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. 2015 was $12 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. 2015 was $-6 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.

Nielsen Holdings PLC Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 000-595-46613286272736381
CF_DDA 000504562558529520521573
ChangeInWorkingCapital 000702235-97-233-48-192
CF_DeferredTax 000-126-304-183-12447-107105
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00018141827344747
Cash Flow from Others 000446689-17220144-248179
Cash Flow from Operations 0003175175436417849011,093

Nielsen Holdings PLC Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
NetIncomeFromContinuingOperations 42613114555769215863116142
CF_DDA 130117146141145139148142146144
ChangeInWorkingCapital -606596-147-7396-68-144-31160
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 11111512121211141312
Cash Flow from Others -301-3-8229505315207-6
Cash Flow from Operations 2063213209021039240175251452
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