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Time Warner Inc (NYSE:TWX)
Cash Flow from Operations
$4,388 Mil (TTM As of Sep. 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 Sep. 2016, Time Warner Inc's Net Income From Continuing Operations was $1,472 Mil. Its DDA was $166 Mil. Its Change In Working Capital was $-1,911 Mil. Its cash flow from deferred tax was $18 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $45 Mil. And its Cash Flow from Others was $1,778 Mil. In all, Time Warner Inc's Cash Flow from Operations for the three months ended in Sep. 2016 was $1,568 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.

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

Time Warner Inc's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Time Warner Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 854 (Dec. 2015 ) + 753 (Mar. 2016 ) + 1213 (Jun. 2016 ) + 1568 (Sep. 2016 ) = $4,388 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Time Warner Inc's net income from continuing operations for the three months ended in Sep. 2016 was $1,472 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

Time Warner Inc's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $166 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.

Time Warner Inc's change in working capital for the three months ended in Sep. 2016 was $-1,911 Mil. It means Time Warner Inc's working capital declined by $1,911 Mil from Jun. 2016 to Sep. 2016 .

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

Time Warner Inc's cash flow from deferred tax for the three months ended in Sep. 2016 was $18 Mil.

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

Time Warner Inc's cash flow from discontinued operations for the three months ended in Sep. 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.

Time Warner Inc's stock based compensation for the three months ended in Sep. 2016 was $45 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).

Time Warner Inc's cash flow from others for the three months ended in Sep. 2016 was $1,778 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 local exchange's currency.

Time Warner Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 6,5524,387-5,0892,0842,5712,8822,6633,3543,8943,795
CF_DDA 6,9534,4126,9177,3519387,954765759733681
ChangeInWorkingCapital -2,530-6,966-5,655-6,778-6,595-8,055-8,076-9,326-9,381-9,319
CF_DeferredTax 01,73640734689128-161759166328
Cash Flow from Disc. Op. 000-4,694-24-16429468-190-8
Stock Based Compensation 0286192175199225195238219182
Cash Flow from Others -2,3774,62013,5606,2266,1123147,1727,0068,2408,192
Cash Flow from Operations 8,5988,47510,3324,7103,2903,4322,9873,2583,6813,851

Time Warner Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 8439667209339711,0348571,1749511,472
CF_DDA 185183182170164167180167169166
ChangeInWorkingCapital -2,649-2,708-2,824-2,246-2,536-1,612-2,925-2,981-2,268-1,911
CF_DeferredTax -68-3481-9616-9650411313618
Cash Flow from Disc. Op. -1415-60000000
Stock Based Compensation 374845904519281084845
Cash Flow from Others 2,1172,1262,4092,1612,1281,6852,2102,1722,1771,778
Cash Flow from Operations 3246171,0071,0127881,1978547531,2131,568
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