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GuruFocus has detected 1 Warning Sign with Novo Nordisk A/S $NVO.
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Novo Nordisk A/S (NYSE:NVO)
Cash Flow from Operations
$7,175 Mil (TTM As of Dec. 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 Dec. 2016, Novo Nordisk A/S's Net Income From Continuing Operations was $1,233 Mil. Its DDA was $158 Mil. Its Change In Working Capital was $-27 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $217 Mil. In all, Novo Nordisk A/S's Cash Flow from Operations for the three months ended in Dec. 2016 was $1,581 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.

Novo Nordisk A/S's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Novo Nordisk A/S's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

Novo Nordisk A/S Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 1115.90481593 (Mar. 2016 ) + 2189.54840659 (Jun. 2016 ) + 2287.8445549 (Sep. 2016 ) + 1581.44745051 (Dec. 2016 ) = $7,175 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.

Novo Nordisk A/S's net income from continuing operations for the three months ended in Dec. 2016 was $1,233 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

Novo Nordisk A/S's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $158 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.

Novo Nordisk A/S's change in working capital for the three months ended in Dec. 2016 was $-27 Mil. It means Novo Nordisk A/S's working capital declined by $27 Mil from Sep. 2016 to Dec. 2016 .

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

Novo Nordisk A/S's cash flow from deferred tax for the three months ended in Dec. 2016 was $0 Mil.

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

Novo Nordisk A/S's cash flow from discontinued operations for the three months ended in Dec. 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.

Novo Nordisk A/S's stock based compensation for the three months ended in Dec. 2016 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).

Novo Nordisk A/S's cash flow from others for the three months ended in Dec. 2016 was $217 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.

Novo Nordisk A/S Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 1,6661,7502,1092,5553,0253,7694,6284,3885,0875,378
CF_DDA 588444500438484474514569432453
ChangeInWorkingCapital -201-102-55537750-49-356-315-526
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000825654756100
Cash Flow from Others -102243458364139-441-4025893831,546
Cash Flow from Operations 1,9512,3353,0123,4913,7823,9074,7675,2515,5876,851

Novo Nordisk A/S Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 1,1251,0821,4321,2551,2621,2051,4111,5061,4771,233
CF_DDA 20515496989514893108111158
ChangeInWorkingCapital 11727-415-27170-36-529367-362-27
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 664-53-5184752921591412091,062217
Cash Flow from Operations 2,1121,2105951,8021,8191,4771,1162,1902,2881,581
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