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GuruFocus has detected 4 Warning Signs with PPG Industries Inc $PPG.
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PPG Industries Inc (NYSE:PPG)
Cash Flow from Operations
$1,255 Mil (TTM As of Mar. 2017)

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 Mar. 2017, PPG Industries Inc's Net Income From Continuing Operations was $339 Mil. Its DDA was $114 Mil. Its Change In Working Capital was $-478 Mil. Its cash flow from deferred tax was $4 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $16 Mil. And its Cash Flow from Others was $14 Mil. In all, PPG Industries Inc's Cash Flow from Operations for the three months ended in Mar. 2017 was $9 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.

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

PPG Industries Inc's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

PPG Industries Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was -104 (Jun. 2016 ) + 776 (Sep. 2016 ) + 574 (Dec. 2016 ) + 9 (Mar. 2017 ) = $1,255 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.

PPG Industries Inc's net income from continuing operations for the three months ended in Mar. 2017 was $339 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

PPG Industries Inc's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $114 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.

PPG Industries Inc's change in working capital for the three months ended in Mar. 2017 was $-478 Mil. It means PPG Industries Inc's working capital declined by $478 Mil from Dec. 2016 to Mar. 2017 .

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

PPG Industries Inc's cash flow from deferred tax for the three months ended in Mar. 2017 was $4 Mil.

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

PPG Industries Inc's cash flow from discontinued operations for the three months ended in Mar. 2017 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.

PPG Industries Inc's stock based compensation for the three months ended in Mar. 2017 was $16 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).

PPG Industries Inc's cash flow from others for the three months ended in Mar. 2017 was $14 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.

PPG Industries Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 8566244268809626809731,1091,359586
CF_DDA 403563480470425399452450471462
ChangeInWorkingCapital -329-66370239-153172-8-181-107-142
CF_DeferredTax 0000-19-207-16-87-1155
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000347181715439
Cash Flow from Others 6631669-27918767230916661225
Cash Flow from Operations 9961,4371,3451,3101,4361,7871,7911,5281,8371,325

PPG Industries Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations 44326342392299344386-22581339
CF_DDA 97120125107119115127107113114
ChangeInWorkingCapital 106-558-14217248-432618896-478
CF_DeferredTax -2812-58441-4205-2572114
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 181525212101711116
Cash Flow from Others 254-3441957813246-8459527214
Cash Flow from Operations 491-42961580085179-1047765749
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