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Northeast Utilities (NYSE:NU)
Cash Flow from Operations
$1,791 Mil (TTM As of Jun. 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 Jun. 2014, Northeast Utilities's Net Income From Continuing Operations was $129 Mil. Its DDA was $152 Mil. Its Change In Working Capital was $-147 Mil. Its cash flow from deferred tax was $-4 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $272 Mil. In all, Northeast Utilities's Cash Flow from Operations for the three months ended in Jun. 2014 was $403 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.

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

Northeast Utilities's Cash Flow from Operations for the quarter that ended in Jun. 2014 is

Northeast Utilities Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2014 was 407.944 (Sep. 2013 ) + 486.571 (Dec. 2013 ) + 493.796 (Mar. 2014 ) + 402.867 (Jun. 2014 ) = $1,791 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.

Northeast Utilities's net income from continuing operations for the three months ended in Jun. 2014 was $129 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

Northeast Utilities's depreciation, depletion and amortization for the three months ended in Jun. 2014 was $152 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.

Northeast Utilities's change in working capital for the three months ended in Jun. 2014 was $-147 Mil. It means Northeast Utilities's working capital declined by $147 Mil from Mar. 2014 to Jun. 2014 .

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

Northeast Utilities's cash flow from deferred tax for the three months ended in Jun. 2014 was $-4 Mil.

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

Northeast Utilities's cash flow from discontinued operations for the three months ended in Jun. 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).

Northeast Utilities's cash flow from others for the three months ended in Jun. 2014 was $272 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.

Northeast Utilities Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 122-253471246261336394401533794
CF_DDA 528654464519465323396302519817
ChangeInWorkingCapital -87-50376-490-119-82-12288-111-307
CF_DeferredTax 112-203-204787126211197292431
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -158293-700-34-44287214-17-72-72
Cash Flow from Operations 5174414072486499891,0939701,1611,664

Northeast Utilities Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
NetIncomeFromContinuingOperations 10146210460230173211179238129
CF_DDA 81144144149155160149353151152
ChangeInWorkingCapital -15960-9786-241-1051228-102-147
CF_DeferredTax 527127106169877897137-4
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -665492-436161-19-42-17170272
Cash Flow from Operations 9312476365473296408487494403
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