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Time Warner Inc (NYSE:TWX)
Cash Flow from Operations
$3,681 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, Time Warner Inc's Net Income From Continuing Operations was $720 Mil. Its DDA was $182 Mil. Its Change In Working Capital was $-2,824 Mil. Its cash flow from deferred tax was $481 Mil. Its Cash Flow from Discontinued Operations was $-6 Mil. Its Stock Based Compensation was $45 Mil. And its Cash Flow from Others was $2,409 Mil. In all, Time Warner Inc's Cash Flow from Operations for the three months ended in Dec. 2014 was $1,007 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. 2014 is calculated as:

Time Warner Inc's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Time Warner Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 1704 (Mar. 2014 ) + 338 (Jun. 2014 ) + 632 (Sep. 2014 ) + 1007 (Dec. 2014 ) = $3,681 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.

Time Warner Inc's net income from continuing operations for the three months ended in Dec. 2014 was $720 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 Dec. 2014 was $182 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 Dec. 2014 was $-2,824 Mil. It means Time Warner Inc's working capital declined by $2,824 Mil from Sep. 2014 to Dec. 2014 .

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 Dec. 2014 was $481 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 Dec. 2014 was $-6 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 Dec. 2014 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 Dec. 2014 was $2,409 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.

Time Warner Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 2,6716,5524,387-5,0892,0842,5712,8822,9223,3543,894
CF_DDA 6,6336,9534,4126,9177,3519389228,102759733
ChangeInWorkingCapital -3,984-2,530-6,966-5,655-6,778-6,595-8,055-8,069-9,326-9,381
CF_DeferredTax 001,73640734689135-150759166
Cash Flow from Disc. Op. 0000-4,6940-160433-103
Stock Based Compensation 00286192175199225234238219
Cash Flow from Others -443-2,3774,62013,5606,2266,0887,3394037,0418,153
Cash Flow from Operations 4,8778,5988,47510,3324,7103,2903,4323,4423,2583,681

Time Warner Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 8221,1127547089589341,292916966720
CF_DDA 5,5972,069217156186200226142183182
ChangeInWorkingCapital -1,364-1,951-2,575-2,185-1,880-2,686-1,220-2,629-2,708-2,824
CF_DeferredTax 204-1904004826051-253-59-3481
Cash Flow from Disc. Op. 0001051361920-1025-6
Stock Based Compensation 404710634494991354845
Cash Flow from Others -3,761661,8272,0491,2151,9501,5682,0352,1412,409
Cash Flow from Operations 1,5381,1537299159246901,7043386321,007
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