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Torchmark Corp (NYSE:TMK)
Cash Flow from Operations
$865 Mil (TTM As of Dec. 2014)

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 Dec. 2014, Torchmark Corp's Net Income From Continuing Operations was $543 Mil. Its DDA was $0 Mil. Its Change In Working Capital was $509 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-831 Mil. In all, Torchmark Corp's Cash Flow from Operations for the three months ended in Dec. 2014 was $220 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.

Torchmark Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Torchmark Corp's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Torchmark Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 274.85 (Mar. 2014 ) + 144.533 (Jun. 2014 ) + 225.015 (Sep. 2014 ) + 220.31 (Dec. 2014 ) = $865 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.

Torchmark Corp's net income from continuing operations for the three months ended in Dec. 2014 was $543 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

Torchmark Corp's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $0 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.

Torchmark Corp's change in working capital for the three months ended in Dec. 2014 was $509 Mil. It means Torchmark Corp's working capital increased by $509 Mil from Sep. 2014 to Dec. 2014 .

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

Torchmark Corp's cash flow from deferred tax for the three months ended in Dec. 2014 was $0 Mil.

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

Torchmark Corp's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

Torchmark Corp's stock based compensation for the three months ended in Dec. 2014 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).

Torchmark Corp's cash flow from others for the three months ended in Dec. 2014 was $-831 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.

Torchmark Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 495519528452405499497529528543
CF_DDA 0000000000
ChangeInWorkingCapital 00-54404580589437522699509
CF_DeferredTax 1317700000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 231270376-126-9-59-75-109-108-187
Cash Flow from Operations 8578658507319761,0298599431,119865

Torchmark Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 0529000528000543
CF_DDA 0000000000
ChangeInWorkingCapital 0522000699000509
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 251-806290202279-880275145225-831
Cash Flow from Operations 251245290202279348275145225220
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