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Seagate Technology PLC (NAS:STX)
Cash Flow from Operations
$1,680 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, Seagate Technology PLC's Net Income From Continuing Operations was $70 Mil. Its DDA was $200 Mil. Its Change In Working Capital was $-23 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $25 Mil. And its Cash Flow from Others was $-3 Mil. In all, Seagate Technology PLC's Cash Flow from Operations for the three months ended in Jun. 2016 was $269 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.

Seagate Technology PLC's Cash Flow from Operations for the fiscal year that ended in Jun. 2016 is calculated as:

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

Seagate Technology PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 824 (Sep. 2015 ) + 382 (Dec. 2015 ) + 205 (Mar. 2016 ) + 269 (Jun. 2016 ) = $1,680 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.

Seagate Technology PLC's net income from continuing operations for the three months ended in Jun. 2016 was $70 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

Seagate Technology PLC's depreciation, depletion and amortization for the three months ended in Jun. 2016 was $200 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.

Seagate Technology PLC's change in working capital for the three months ended in Jun. 2016 was $-23 Mil. It means Seagate Technology PLC's working capital declined by $23 Mil from Mar. 2016 to Jun. 2016 .

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

Seagate Technology PLC's cash flow from deferred tax for the three months ended in Jun. 2016 was $0 Mil.

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

Seagate Technology 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.

Seagate Technology PLC's stock based compensation for the three months ended in Jun. 2016 was $25 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).

Seagate Technology PLC's cash flow from others for the three months ended in Jun. 2016 was $-3 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.

Seagate Technology PLC Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
NetIncomeFromContinuingOperations 9131,262-3,1251,6095112,8621,8381,5701,742248
CF_DDA 851844931780754814873879841815
ChangeInWorkingCapital -683324300-569-116-424274-1-142464
CF_DeferredTax -36510306-3646-28-70-672-2
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 008357515176118137120
Cash Flow from Others 227982,3289118-1356596735
Cash Flow from Operations 9432,5388231,9321,2643,2623,0472,5582,6471,680

Seagate Technology PLC Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 39532038193329113734164-2070
CF_DDA 211211218208203212208209198200
ChangeInWorkingCapital -24532-53234-143-180539-24-28-23
CF_DeferredTax -2-502-6150000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 30314231333133323025
Cash Flow from Others 54331243-112310125-3
Cash Flow from Operations 4435776021,443374228824382205269
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