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Shire PLC (NAS:SHPG)
Cash Flow from Operations
$2,304 Mil (TTM As of Jun. 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 Jun. 2016, Shire PLC's Net Income From Continuing Operations was $-162 Mil. Its DDA was $554 Mil. Its Change In Working Capital was $375 Mil. Its cash flow from deferred tax was $-319 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $177 Mil. And its Cash Flow from Others was $-33 Mil. In all, Shire PLC's Cash Flow from Operations for the three months ended in Jun. 2016 was $591 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.

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

Shire PLC's Cash Flow from Operations for the quarter that ended in Jun. 2016 is

Shire PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 561.3 (Sep. 2015 ) + 761.8 (Dec. 2015 ) + 389.5 (Mar. 2016 ) + 590.9 (Jun. 2016 ) = $2,304 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.

Shire PLC's net income from continuing operations for the three months ended in Jun. 2016 was $-162 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

Shire PLC's depreciation, depletion and amortization for the three months ended in Jun. 2016 was $554 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.

Shire PLC's change in working capital for the three months ended in Jun. 2016 was $375 Mil. It means Shire PLC's working capital increased by $375 Mil from Mar. 2016 to Jun. 2016 .

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

Shire PLC's cash flow from deferred tax for the three months ended in Jun. 2016 was $-319 Mil.

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

Shire PLC's cash flow from discontinued operations for the three months ended in Jun. 2016 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.

Shire PLC's stock based compensation for the three months ended in Jun. 2016 was $177 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).

Shire PLC's cash flow from others for the three months ended in Jun. 2016 was $-33 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.

Shire PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 278-1,4521745045888657456653,4061,303
CF_DDA 104172203250256295309324407637
ChangeInWorkingCapital 355-3628-4736-16599-064-31
CF_DeferredTax -142-2574-99-15-15-58-350-14-198
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0065666276877797100
Cash Flow from Others -631,816257-472917201746269525
Cash Flow from Operations 5324758006279551,0741,3831,4634,2282,337

Shire PLC Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 2305234802,172410160453281419-162
CF_DDA 95110102100121188149180169554
ChangeInWorkingCapital -24520-62351-12-85-36102-236375
CF_DeferredTax 19738-7717-96-99-20-10-319
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 263023191529273018177
Cash Flow from Others 12214513-10112576719030-33
Cash Flow from Operations 2468345932,555562452561762390591
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