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PPL Corp (NYSE:PPL)
Cash Flow from Operations
USD 2,814 Mil (TTM As of Sep. 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 Sep. 2016, PPL Corp's Net Income From Continuing Operations was USD 473 Mil. Its DDA was USD 249 Mil. Its Change In Working Capital was USD 49 Mil. Its cash flow from deferred tax was USD 116 Mil. Its Cash Flow from Discontinued Operations was USD 0 Mil. Its Stock Based Compensation was USD 5 Mil. And its Cash Flow from Others was USD 168 Mil. In all, PPL Corp's Cash Flow from Operations for the three months ended in Sep. 2016 was USD 1,060 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.

PPL Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

PPL Corp's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

PPL Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 584 (Dec. 2015 ) + 557 (Mar. 2016 ) + 613 (Jun. 2016 ) + 1060 (Sep. 2016 ) = USD 2,814 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.

PPL Corp's net income from continuing operations for the three months ended in Sep. 2016 was USD 473 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

PPL Corp's depreciation, depletion and amortization for the three months ended in Sep. 2016 was USD 249 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.

PPL Corp's change in working capital for the three months ended in Sep. 2016 was USD 49 Mil. It means PPL Corp's working capital increased by USD 49 Mil from Jun. 2016 to Sep. 2016 .

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

PPL Corp's cash flow from deferred tax for the three months ended in Sep. 2016 was USD 116 Mil.

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

PPL Corp's cash flow from discontinued operations for the three months ended in Sep. 2016 was USD 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.

PPL Corp's stock based compensation for the three months ended in Sep. 2016 was USD 5 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).

PPL Corp's cash flow from others for the three months ended in Sep. 2016 was USD 168 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.

PPL Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 8651,2889304269591,5121,5311,3681,4371,603
CF_DDA 7558914618607801,2151,286909988942
ChangeInWorkingCapital 192-266-9106-356160-18-228210-131
CF_DeferredTax -254243104241582424387666428
Cash Flow from Disc. Op. 0000000175-113352
Stock Based Compensation 000000490640
Cash Flow from Others -29-384164356409-962-508245151-579
Cash Flow from Operations 1,7581,5711,5891,8522,0332,5072,7642,8563,4032,615

PPL Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 303410408552250396405481483473
CF_DDA 125249249227232245238247250249
ChangeInWorkingCapital -9730920-259-17425547-1815649
CF_DeferredTax 27916325011114510369162158116
Cash Flow from Disc. Op. 00013122100000
Stock Based Compensation -84401424-1201355
Cash Flow from Others 50-90-192-103-58-269-175-165-339168
Cash Flow from Operations 6521,0457756736407185845576131,060
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