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STMicroelectronics NV (NYSE:STM)
Cash Flow from Operations
$940 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, STMicroelectronics NV's Net Income From Continuing Operations was $33 Mil. Its DDA was $269 Mil. Its Change In Working Capital was $86 Mil. Its cash flow from deferred tax was $-58 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $20 Mil. And its Cash Flow from Others was $41 Mil. In all, STMicroelectronics NV's Cash Flow from Operations for the three months ended in Jun. 2015 was $391 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.

STMicroelectronics NV's Cash Flow from Operations for the fiscal year that ended in Mar. 2014 is calculated as:

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

STMicroelectronics NV Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 89 (Sep. 2014 ) + 311 (Dec. 2014 ) + 149 (Mar. 2015 ) + 391 (Jun. 2015 ) = $940 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.

STMicroelectronics NV's net income from continuing operations for the three months ended in Jun. 2015 was $33 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

STMicroelectronics NV's depreciation, depletion and amortization for the three months ended in Jun. 2015 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.

STMicroelectronics NV's change in working capital for the three months ended in Jun. 2015 was $86 Mil. It means STMicroelectronics NV's working capital increased by $86 Mil from Mar. 2015 to Jun. 2015 .

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

STMicroelectronics NV's cash flow from deferred tax for the three months ended in Jun. 2015 was $-58 Mil.

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

STMicroelectronics NV'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.

STMicroelectronics NV's stock based compensation for the three months ended in Jun. 2015 was $20 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).

STMicroelectronics NV's cash flow from others for the three months ended in Jun. 2015 was $41 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.

STMicroelectronics NV Annual Data

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
NetIncomeFromContinuingOperations 493429724-635000-263-2,150-354
CF_DDA 1,9401,8971,7311,374001,2471,2501,056878
ChangeInWorkingCapital -325-306-71580094272220-123
CF_DeferredTax -26-21-68-112001323-46-18
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000003427928
Cash Flow from Others 6717741,52900244-5091,339-58
Cash Flow from Operations 2,1492,0162,3902,214001,751780428353

STMicroelectronics NV Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations -297-138-160-34-2289194313033
CF_DDA 23722487225205208105199175269
ChangeInWorkingCapital 88-50-9287-68-15639109486
CF_DeferredTax -34-775211-41-63-77-150-58
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 457106118113820
Cash Flow from Others 6851-64-29-64-82-1926-4841
Cash Flow from Operations 6615-170270537189311149391
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