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Eversource Energy (NYSE:NU)
Cash Flow from Operations
$1,424 Mil (TTM As of Dec. 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 Dec. 2015, Eversource Energy's Net Income From Continuing Operations was $184 Mil. Its DDA was $170 Mil. Its Change In Working Capital was $-80 Mil. Its cash flow from deferred tax was $338 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-530 Mil. In all, Eversource Energy's Cash Flow from Operations for the three months ended in Dec. 2015 was $82 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.

Eversource Energy's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Eversource Energy's Cash Flow from Operations for the quarter that ended in Dec. 2015 is

Eversource Energy Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 481.815 (Mar. 2015 ) + 373.741 (Jun. 2015 ) + 486.035 (Sep. 2015 ) + 82.434 (Dec. 2015 ) = $1,424 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.

Eversource Energy's net income from continuing operations for the three months ended in Dec. 2015 was $184 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

Eversource Energy's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $170 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.

Eversource Energy's change in working capital for the three months ended in Dec. 2015 was $-80 Mil. It means Eversource Energy's working capital declined by $80 Mil from Sep. 2015 to Dec. 2015 .

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

Eversource Energy's cash flow from deferred tax for the three months ended in Dec. 2015 was $338 Mil.

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

Eversource Energy's cash flow from discontinued operations for the three months ended in Dec. 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.

Eversource Energy's stock based compensation for the three months ended in Dec. 2015 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).

Eversource Energy's cash flow from others for the three months ended in Dec. 2015 was $-530 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.

Eversource Energy Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 471246266336394401533794827886
CF_DDA 464306465323301393519611615666
ChangeInWorkingCapital 376-490-119-82-12288-111-307-326-23
CF_DeferredTax -204787126211197292431443492
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 01400000000
Cash Flow from Others -700166-44287310-108-7213477-597
Cash Flow from Operations 4072486559891,0939701,1611,6641,6351,424

Eversource Energy Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 179238129236223255209238184246
CF_DDA 147151152153158164164168170174
ChangeInWorkingCapital 28-102-14791-169-13-55125-8036
CF_DeferredTax 97137-4-6837914829-23338141
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 357027295-360-7227-21-530-97
Cash Flow from Operations 48749440350723148237448682500
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