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Varian Medical Systems Inc (NYSE:VAR)
Cash Flow from Operations
$446 Mil (TTM As of Mar. 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 Mar. 2016, Varian Medical Systems Inc's Net Income From Continuing Operations was $97 Mil. Its DDA was $19 Mil. Its Change In Working Capital was $-99 Mil. Its cash flow from deferred tax was $4 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $13 Mil. And its Cash Flow from Others was $-2 Mil. In all, Varian Medical Systems Inc's Cash Flow from Operations for the three months ended in Mar. 2016 was $32 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.

Varian Medical Systems Inc's Cash Flow from Operations for the fiscal year that ended in Sep. 2015 is calculated as:

Varian Medical Systems Inc's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

Varian Medical Systems Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 183.901 (Jun. 2015 ) + 153.389 (Sep. 2015 ) + 77.222 (Dec. 2015 ) + 31.905 (Mar. 2016 ) = $446 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.

Varian Medical Systems Inc's net income from continuing operations for the three months ended in Mar. 2016 was $97 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

Varian Medical Systems Inc's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $19 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.

Varian Medical Systems Inc's change in working capital for the three months ended in Mar. 2016 was $-99 Mil. It means Varian Medical Systems Inc's working capital declined by $99 Mil from Dec. 2015 to Mar. 2016 .

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

Varian Medical Systems Inc's cash flow from deferred tax for the three months ended in Mar. 2016 was $4 Mil.

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

Varian Medical Systems Inc's cash flow from discontinued operations for the three months ended in Mar. 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.

Varian Medical Systems Inc's stock based compensation for the three months ended in Mar. 2016 was $13 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).

Varian Medical Systems Inc's cash flow from others for the three months ended in Mar. 2016 was $-2 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.

Varian Medical Systems Inc Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
NetIncomeFromContinuingOperations 245239279331360399427438404412
CF_DDA 30323745485361636269
ChangeInWorkingCapital -52-175-88-24-56-51-86-88-65
CF_DeferredTax -6433-223035-2-4165
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00043404248434046
Cash Flow from Others 434348-46-0101152
Cash Flow from Operations 202300372304461473493455449470

Varian Medical Systems Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 989310710693106114998997
CF_DDA 16151516171617191819
ChangeInWorkingCapital -8726-6437-66-844738-43-99
CF_DeferredTax 7-211021142-1-10-34
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 9101110131311101113
Cash Flow from Others 147480-4-25-2
Cash Flow from Operations 431268619379531841537732
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