Switch to:
Procter & Gamble Co (NYSE:PG)
Cash Flow from Operations
$14,608 Mil (TTM As of Jun. 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 Jun. 2015, Procter & Gamble Co's Net Income From Continuing Operations was $538 Mil. Its DDA was $808 Mil. Its Change In Working Capital was $1,173 Mil. Its cash flow from deferred tax was $-668 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $106 Mil. And its Cash Flow from Others was $2,031 Mil. In all, Procter & Gamble Co's Cash Flow from Operations for the three months ended in Jun. 2015 was $3,988 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.

Procter & Gamble Co's Cash Flow from Operations for the fiscal year that ended in Jun. 2015 is calculated as:

Procter & Gamble Co's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Procter & Gamble Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 3633 (Sep. 2014 ) + 3435 (Dec. 2014 ) + 3552 (Mar. 2015 ) + 3988 (Jun. 2015 ) = $14,608 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.

Procter & Gamble Co's net income from continuing operations for the three months ended in Jun. 2015 was $538 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

Procter & Gamble Co's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $808 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.

Procter & Gamble Co's change in working capital for the three months ended in Jun. 2015 was $1,173 Mil. It means Procter & Gamble Co's working capital increased by $1,173 Mil from Mar. 2015 to Jun. 2015 .

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

Procter & Gamble Co's cash flow from deferred tax for the three months ended in Jun. 2015 was $-668 Mil.

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

Procter & Gamble Co's cash flow from discontinued operations for the three months ended in Jun. 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.

Procter & Gamble Co's stock based compensation for the three months ended in Jun. 2015 was $106 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).

Procter & Gamble Co's cash flow from others for the three months ended in Jun. 2015 was $2,031 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.

Procter & Gamble Co Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
NetIncomeFromContinuingOperations 8,68410,34012,07513,43612,73611,92710,90411,40211,7857,144
CF_DDA 2,6273,1303,1663,0823,1082,8383,2042,9823,1413,134
ChangeInWorkingCapital -409-1,548-1,591-3642,213-1,759-816681-1,461614
CF_DeferredTax -1122531,21459636128-65-307-44-803
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00555516453414377346360337
Cash Flow from Others 5851,260-411-2,347-2,474-317-320-2311774,182
Cash Flow from Operations 11,37513,43515,00814,91916,07213,23113,28414,87313,95814,608

Procter & Gamble Co Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 2,5911,8823,0573,4722,6362,6202,0202,3982,188538
CF_DDA 740794771755791824794746786808
ChangeInWorkingCapital 3731,278-1,995-877502909-173-5962101,173
CF_DeferredTax 57-382-11-1153646-1546-166-668
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 9696846994113817080106
Cash Flow from Others 5724138-550-69267714542,031
Cash Flow from Operations 3,8624,3922,0443,2994,1094,5063,6333,4353,5523,988
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK