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Union Pacific Corp (NYSE:UNP)
Cash Flow from Operations
$7,186 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, Union Pacific Corp's Net Income From Continuing Operations was $1,131 Mil. Its DDA was $512 Mil. Its Change In Working Capital was $207 Mil. Its cash flow from deferred tax was $170 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-78 Mil. In all, Union Pacific Corp's Cash Flow from Operations for the three months ended in Sep. 2016 was $1,942 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.

Union Pacific Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Union Pacific Corp's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Union Pacific Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 1719 (Dec. 2015 ) + 2173 (Mar. 2016 ) + 1352 (Jun. 2016 ) + 1942 (Sep. 2016 ) = $7,186 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.

Union Pacific Corp's net income from continuing operations for the three months ended in Sep. 2016 was $1,131 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

Union Pacific Corp's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $512 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.

Union Pacific Corp's change in working capital for the three months ended in Sep. 2016 was $207 Mil. It means Union Pacific Corp's working capital increased by $207 Mil from Jun. 2016 to Sep. 2016 .

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

Union Pacific Corp's cash flow from deferred tax for the three months ended in Sep. 2016 was $170 Mil.

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

Union Pacific Corp'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.

Union Pacific Corp's stock based compensation for the three months ended in Sep. 2016 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).

Union Pacific Corp's cash flow from others for the three months ended in Sep. 2016 was $-78 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.

Union Pacific Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 1,6061,8552,3351,8902,7803,2923,9434,3885,1804,772
CF_DDA 1,2371,3211,3661,4271,4871,6171,7601,7771,9042,012
ChangeInWorkingCapital 1428-250-293-351276-269161-309-177
CF_DeferredTax 235332545718672986887723895765
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 3544650000000
Cash Flow from Others -247-303-17-538-483-298-160-226-285-28
Cash Flow from Operations 2,8803,2774,0443,2044,1055,8736,1616,8237,3857,344

Union Pacific Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 1,2911,3701,4311,1511,2041,3001,1179799791,131
CF_DDA 470481489491497507517502504512
ChangeInWorkingCapital -401106-211282-5665-468597-195207
CF_DeferredTax 80134606108129118410169180170
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 1446-28832-65-138143-74-116-78
Cash Flow from Operations 1,4542,1372,0272,0641,7091,8521,7192,1731,3521,942
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