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United Parcel Service Inc (NYSE:UPS)
Cash Flow from Operations
$7,430 Mil (TTM As of Dec. 2015)

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. 2015, United Parcel Service Inc's Net Income From Continuing Operations was $1,331 Mil. Its DDA was $541 Mil. Its Change In Working Capital was $-977 Mil. Its cash flow from deferred tax was $738 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $122 Mil. And its Cash Flow from Others was $-740 Mil. In all, United Parcel Service Inc's Cash Flow from Operations for the three months ended in Dec. 2015 was $1,015 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.

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

United Parcel Service Inc's Cash Flow from Operations for the quarter that ended in Dec. 2015 is

United Parcel Service Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 2751 (Mar. 2015 ) + 1488 (Jun. 2015 ) + 2176 (Sep. 2015 ) + 1015 (Dec. 2015 ) = $7,430 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.

United Parcel Service Inc's net income from continuing operations for the three months ended in Dec. 2015 was $1,331 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

United Parcel Service Inc's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $541 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.

United Parcel Service Inc's change in working capital for the three months ended in Dec. 2015 was $-977 Mil. It means United Parcel Service Inc's working capital declined by $977 Mil from Sep. 2015 to Dec. 2015 .

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

United Parcel Service Inc's cash flow from deferred tax for the three months ended in Dec. 2015 was $738 Mil.

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

United Parcel Service Inc's cash flow from discontinued operations for the three months ended in Dec. 2015 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.

United Parcel Service Inc's stock based compensation for the three months ended in Dec. 2015 was $122 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).

United Parcel Service Inc's cash flow from others for the three months ended in Dec. 2015 was $-740 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.

United Parcel Service Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 4,2023823,0032,1523,4883,8048074,3723,0324,844
CF_DDA 1,7481,7451,8141,7471,7921,7821,8581,8671,9232,084
ChangeInWorkingCapital -80-1,4471,161108-659224132-34288-254
CF_DeferredTax 279-2491874711,002241-1,199-246385540
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 369447516430519524547513536574
Cash Flow from Others -9292451,745377-2,3074985,071832-438-358
Cash Flow from Operations 5,5891,1238,4265,2853,8357,0737,2167,3045,7267,430

United Parcel Service Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 1,1679114541,2144531,0261,2301,2571,3311,131
CF_DDA 4674684734854975065105275410
ChangeInWorkingCapital 0562-63727489892-434265-9770
CF_DeferredTax 149-60-132259318-49-91-587380
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1071641421241061941341241220
Cash Flow from Others 354222-73537218213961-740-1,131
Cash Flow from Operations 2,2442,267-4352,3591,5352,7511,4882,1761,0150
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