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Transocean Ltd (NYSE:RIG)
Cash Flow from Operations
$1,948 Mil (TTM As of Mar. 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 Mar. 2014, Transocean Ltd's Net Income From Continuing Operations was $466 Mil. Its DDA was $269 Mil. Its Change In Working Capital was $-702 Mil. Its cash flow from deferred tax was $-15 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $118 Mil. In all, Transocean Ltd's Cash Flow from Operations for the three months ended in Mar. 2014 was $136 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.

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

Transocean Ltd's Cash Flow from Operations for the quarter that ended in Mar. 2014 is

Transocean Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2014 was 416 (Jun. 2013 ) + 623 (Sep. 2013 ) + 773 (Dec. 2013 ) + 136 (Mar. 2014 ) = $1,948 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.

Transocean Ltd's net income from continuing operations for the three months ended in Mar. 2014 was $466 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

Transocean Ltd's depreciation, depletion and amortization for the three months ended in Mar. 2014 was $269 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.

Transocean Ltd's change in working capital for the three months ended in Mar. 2014 was $-702 Mil. It means Transocean Ltd's working capital declined by $702 Mil from Dec. 2013 to Mar. 2014 .

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

Transocean Ltd's cash flow from deferred tax for the three months ended in Mar. 2014 was $-15 Mil.

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

Transocean Ltd's cash flow from discontinued operations for the three months ended in Mar. 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).

Transocean Ltd's cash flow from others for the three months ended in Mar. 2014 was $118 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.

Transocean Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 1527161,3853,1314,0293,170969-5,677-2111,407
CF_DDA 5033994014117461,1839111,0641,2641,094
ChangeInWorkingCapital -27-136-69-172-425434379803543-820
CF_DeferredTax 1827-23-40813-104-62-133-9
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -42-142-457-2576017981,7515,6971,245246
Cash Flow from Operations 6048641,2373,0734,9595,5983,9061,8252,7081,918

Transocean Ltd Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
NetIncomeFromContinuingOperations -6,12218-303-383457313311548235466
CF_DDA 275274333319268266279268281269
ChangeInWorkingCapital 1,215-9844629166-473-265-196114-702
CF_DeferredTax -92-17-26-61-29-28-8-2855-15
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 5,32736398826128993188118
Cash Flow from Operations 603540459786923106416623773136
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