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GuruFocus has detected 3 Warning Signs with ONEOK Inc $OKE.
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ONEOK Inc (NYSE:OKE)
Cash Flow from Operations
$1,352 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, ONEOK Inc's Net Income From Continuing Operations was $194 Mil. Its DDA was $99 Mil. Its Change In Working Capital was $70 Mil. Its cash flow from deferred tax was $54 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $9 Mil. And its Cash Flow from Others was $2 Mil. In all, ONEOK Inc's Cash Flow from Operations for the three months ended in Dec. 2016 was $430 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.

ONEOK Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

ONEOK Inc's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

ONEOK Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 229.478 (Mar. 2016 ) + 302.128 (Jun. 2016 ) + 390.422 (Sep. 2016 ) + 429.586 (Dec. 2016 ) = $1,352 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.

ONEOK Inc's net income from continuing operations for the three months ended in Dec. 2016 was $194 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

ONEOK Inc's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $99 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.

ONEOK Inc's change in working capital for the three months ended in Dec. 2016 was $70 Mil. It means ONEOK Inc's working capital increased by $70 Mil from Sep. 2016 to Dec. 2016 .

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

ONEOK Inc's cash flow from deferred tax for the three months ended in Dec. 2016 was $54 Mil.

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

ONEOK Inc'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.

ONEOK Inc's stock based compensation for the three months ended in Dec. 2016 was $9 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).

ONEOK Inc's cash flow from others for the three months ended in Dec. 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.

ONEOK Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 305312491540760744577663379743
CF_DDA 228244289307312336384306355392
ChangeInWorkingCapital 210-515478-161-12-306-760-149-42
CF_DeferredTax 65165199142257229152157138212
Cash Flow from Disc. Op. 000-2-81203-0-0
Stock Based Compensation 0312324663746261641
Cash Flow from Others 222239-28-17-19-67143702687
Cash Flow from Operations 1,0304761,4538341,3569841,2951,2861,0071,352

ONEOK Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 11420296151161-28175180194194
CF_DDA 75818687889394999999
ChangeInWorkingCapital 2774-187265-29-102-524270
CF_DeferredTax 39613748401354525254
Cash Flow from Disc. Op. 0000-000-000
Stock Based Compensation 63626381589
Cash Flow from Others 74-524226009-52
Cash Flow from Operations 33441539295361312229302390430
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