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Sempra Energy (NYSE:SRE)
Cash Flow from Operations
$2,346 Mil (TTM As of Jun. 2015)

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. 2015, Sempra Energy's Net Income From Continuing Operations was $320 Mil. Its DDA was $307 Mil. Its Change In Working Capital was $-188 Mil. Its cash flow from deferred tax was $72 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-103 Mil. In all, Sempra Energy's Cash Flow from Operations for the three months ended in Jun. 2015 was $408 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. 2014 is calculated as:

Sempra Energy's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Sempra Energy Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 627 (Sep. 2014 ) + 500 (Dec. 2014 ) + 811 (Mar. 2015 ) + 408 (Jun. 2015 ) = $2,346 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. 2015 was $320 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. 2015 was $307 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. 2015 was $-188 Mil. It means Sempra Energy's working capital declined by $188 Mil from Mar. 2015 to Jun. 2015 .

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. 2015 was $72 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. 2015 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. 2015 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. 2015 was $-103 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 9131,4061,0991,0681,1227331,3819201,0881,262
CF_DDA 6266576866877758679761,0901,1131,156
ChangeInWorkingCapital -717-121126-572-211107-224-630-774-311
CF_DeferredTax -29877149324295483-43334146
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 0-39057-316-106399-26968123-92
Cash Flow from Operations 5241,6292,1171,1911,8752,1541,8672,0181,7842,161

Sempra Energy Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 178267323320266292383321458320
CF_DDA 295247286285286288292290303307
ChangeInWorkingCapital 149-129-474-320347-430-132-96-10-188
CF_DeferredTax 252-17679510261513172
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -39-11414162-90-3058-30-71-103
Cash Flow from Operations 835270225454904130627500811408
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