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PPL Corp (NYSE:PPL)
Cash Flow from Operations
$3,262 Mil (TTM As of Sep. 2014)

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. 2014, PPL Corp's Net Income From Continuing Operations was $497 Mil. Its DDA was $369 Mil. Its Change In Working Capital was $281 Mil. Its cash flow from deferred tax was $133 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $-235 Mil. In all, PPL Corp's Cash Flow from Operations for the three months ended in Sep. 2014 was $1,045 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. 2013 is calculated as:

PPL Corp's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

PPL Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 634 (Dec. 2013 ) + 931 (Mar. 2014 ) + 652 (Jun. 2014 ) + 1045 (Sep. 2014 ) = $3,262 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.

PPL Corp's net income from continuing operations for the three months ended in Sep. 2014 was $497 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. 2014 was $369 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. 2014 was $281 Mil. It means PPL Corp's working capital increased by $281 Mil from Jun. 2014 to Sep. 2014 .

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. 2014 was $133 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. 2014 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).

PPL Corp's cash flow from others for the three months ended in Sep. 2014 was $-235 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.

PPL Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 6986788651,2889504269591,5121,5311,131
CF_DDA 6917217558914618607801,2151,2861,383
ChangeInWorkingCapital -51-108192-266-9138-809-668-18-350
CF_DeferredTax 155-66-25424310424158242472
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 4163-29-384144324862-134-459621
Cash Flow from Operations 1,4971,3881,7581,5711,5891,8522,0332,5072,7642,857

PPL Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 271355360413405411-98316229497
CF_DDA 304334329348335340360365364369
ChangeInWorkingCapital 18256-72-321-126217-120-22-125281
CF_DeferredTax 107-661268021110-229-26159133
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -481268-73-276-12229872129825-235
Cash Flow from Operations 2191,1476702447031,2766349316521,045
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