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United Parcel Service Inc (UPS) (NYSE:UPS)
Cash Flow from Operations
$6,435 Mil (TTM As of Sep. 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 Sep. 2014, United Parcel Service Inc (UPS)'s Net Income From Continuing Operations was $1,214 Mil. Its DDA was $485 Mil. Its Change In Working Capital was $274 Mil. Its cash flow from deferred tax was $259 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $127 Mil. In all, United Parcel Service Inc (UPS)'s Cash Flow from Operations for the three months ended in Sep. 2014 was $2,359 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 (UPS)'s Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

United Parcel Service Inc (UPS)'s Cash Flow from Operations for the quarter that ended in Sep. 2014 is

United Parcel Service Inc (UPS) Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 2244 (Dec. 2013 ) + 2267 (Mar. 2014 ) + -435 (Jun. 2014 ) + 2359 (Sep. 2014 ) = $6,435 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 (UPS)'s net income from continuing operations for the three months ended in Sep. 2014 was $1,214 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 (UPS)'s depreciation, depletion and amortization for the three months ended in Sep. 2014 was $485 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 (UPS)'s change in working capital for the three months ended in Sep. 2014 was $274 Mil. It means United Parcel Service Inc (UPS)'s working capital increased by $274 Mil from Jun. 2014 to Sep. 2014 .

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

United Parcel Service Inc (UPS)'s cash flow from deferred tax for the three months ended in Sep. 2014 was $259 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 (UPS)'s cash flow from discontinued operations for the three months ended in Sep. 2014 was $0 Mil.

6. 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 (UPS)'s cash flow from others for the three months ended in Sep. 2014 was $127 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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 (UPS) Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 3,3333,8704,2023823,0032,1523,3383,8048074,372
CF_DDA 1,5431,6441,7481,7451,8141,7471,7921,7821,8581,867
ChangeInWorkingCapital -723-22-62-1,4471,161108-659224132-34
CF_DeferredTax 28945099-249187471919241-2,083-246
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 889-149-3986922,261807-1,5551,0226,5021,345
Cash Flow from Operations 5,3315,7935,5891,1238,4265,2853,8357,0737,2167,304

United Parcel Service Inc (UPS) Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 1,116469-1,7481,0371,0711,0971,1679114541,214
CF_DDA 459464476474466460467468473485
ChangeInWorkingCapital -148-196-219296-174-1560562-637274
CF_DeferredTax -56478-2,413-188-94-113149-60-132259
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 199386,017139404341461386-593127
Cash Flow from Operations 1,5701,2532,1131,7581,6731,6292,2442,267-4352,359
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