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Principal Financial Group (NYSE:PFG)
Cash Flow from Operations
$1,625 Mil (TTM As of Dec. 2013)

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. 2013, Principal Financial Group's Net Income From Continuing Operations was $250 Mil. Its DDA was $39 Mil. Its Change In Working Capital was $537 Mil. Its cash flow from deferred tax was $36 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $-40 Mil. In all, Principal Financial Group's Cash Flow from Operations for the three months ended in Dec. 2013 was $823 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.

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

Principal Financial Group's Cash Flow from Operations for the quarter that ended in Dec. 2013 is

Principal Financial Group Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 187.7 (Jun. 2013 ) + 614.3 (Sep. 2013 ) + 0 (Nov. 2013 ) + 823.3 (Dec. 2013 ) = $1,625 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.

Principal Financial Group's net income from continuing operations for the three months ended in Dec. 2013 was $250 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

Principal Financial Group's depreciation, depletion and amortization for the three months ended in Dec. 2013 was $39 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.

Principal Financial Group's change in working capital for the three months ended in Dec. 2013 was $537 Mil. It means Principal Financial Group's working capital increased by $537 Mil from Nov. 2013 to Dec. 2013 .

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

Principal Financial Group's cash flow from deferred tax for the three months ended in Dec. 2013 was $36 Mil.

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

Principal Financial Group's cash flow from discontinued operations for the three months ended in Dec. 2013 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).

Principal Financial Group's cash flow from others for the three months ended in Dec. 2013 was $-40 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.

Principal Financial Group Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 8319191,035864466646681689825936
CF_DDA 322348101130145139165116132154
ChangeInWorkingCapital 007661,8101,3508531,0868832,4921,459
CF_DeferredTax 38-453170-70-22066412018212
Cash Flow from Disc. Op. 00-21000000
Cash Flow from Others 1,0661,5702052254845408191,005-387-540
Cash Flow from Operations 2,2562,3842,2762,9602,2252,2432,7922,7133,0812,221

Principal Financial Group Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Nov13Dec13
NetIncomeFromContinuingOperations 1562211791992271902372590250
CF_DDA 2833333333354039039
ChangeInWorkingCapital 560519279983711-1052777500537
CF_DeferredTax -19-3314-1148137-039036
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 10216195-332-312339-366-4730-40
Cash Flow from Operations 8289026008727075961886140823
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