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Sempra Energy (NYSE:SRE)
Cash Flow from Operations
$2,568 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, Sempra Energy's Net Income From Continuing Operations was $27 Mil. Its DDA was $314 Mil. Its Change In Working Capital was $101 Mil. Its cash flow from deferred tax was $-154 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $2 Mil. In all, Sempra Energy's Cash Flow from Operations for the three months ended in Jun. 2016 was $290 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.

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

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

Sempra Energy Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 870 (Sep. 2015 ) + 816 (Dec. 2015 ) + 592 (Mar. 2016 ) + 290 (Jun. 2016 ) = $2,568 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.

Sempra Energy's net income from continuing operations for the three months ended in Jun. 2016 was $27 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

Sempra Energy's depreciation, depletion and amortization for the three months ended in Jun. 2016 was $314 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.

Sempra Energy's change in working capital for the three months ended in Jun. 2016 was $101 Mil. It means Sempra Energy's working capital increased by $101 Mil from Mar. 2016 to Jun. 2016 .

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

Sempra Energy's cash flow from deferred tax for the three months ended in Jun. 2016 was $-154 Mil.

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

Sempra Energy'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.

Sempra Energy's stock based compensation for the three months ended in Jun. 2016 was $0 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).

Sempra Energy's cash flow from others for the three months ended in Jun. 2016 was $2 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.

Sempra Energy Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 1,4061,0991,0681,1227331,3819201,0881,2621,448
CF_DDA 6576866877758679761,0901,1131,1561,250
ChangeInWorkingCapital -121126-572-211107-224-281-774-311513
CF_DeferredTax 77149324295483-43334146239
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -39057-316-106399-26933223-92-545
Cash Flow from Operations 1,6292,1171,1911,8752,1541,8672,0181,7842,1612,905

Sempra Energy Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 26629238332145832028238833027
CF_DDA 286288292290303307315325328314
ChangeInWorkingCapital 347-430-132-96-10-188458253146101
CF_DeferredTax 9510261513172-2460112-154
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -90-3058-30-71-103-161-210-3242
Cash Flow from Operations 904130627500811408870816592290
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