Switch to:
Zimmer Holdings Inc (NYSE:ZMH)
Cash Flow from Operations
$956 Mil (TTM As of Mar. 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 Mar. 2015, Zimmer Holdings Inc's Net Income From Continuing Operations was $177 Mil. Its DDA was $89 Mil. Its Change In Working Capital was $-196 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $13 Mil. And its Cash Flow from Others was $9 Mil. In all, Zimmer Holdings Inc's Cash Flow from Operations for the three months ended in Mar. 2015 was $92 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.

Zimmer Holdings Inc's Cash Flow from Operations for the fiscal year that ended in May. 2014 is calculated as:

Zimmer Holdings Inc's Cash Flow from Operations for the quarter that ended in Mar. 2015 is

Zimmer Holdings Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 254.1 (Jun. 2014 ) + 255.7 (Sep. 2014 ) + 354.2 (Dec. 2014 ) + 91.5 (Mar. 2015 ) = $956 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.

Zimmer Holdings Inc's net income from continuing operations for the three months ended in Mar. 2015 was $177 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

Zimmer Holdings Inc's depreciation, depletion and amortization for the three months ended in Mar. 2015 was $89 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.

Zimmer Holdings Inc's change in working capital for the three months ended in Mar. 2015 was $-196 Mil. It means Zimmer Holdings Inc's working capital declined by $196 Mil from Dec. 2014 to Mar. 2015 .

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

Zimmer Holdings Inc's cash flow from deferred tax for the three months ended in Mar. 2015 was $0 Mil.

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

Zimmer Holdings Inc's cash flow from discontinued operations for the three months ended in Mar. 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.

Zimmer Holdings Inc's stock based compensation for the three months ended in Mar. 2015 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).

Zimmer Holdings Inc's cash flow from others for the three months ended in Mar. 2015 was $9 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.

Zimmer Holdings Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13May14
NetIncomeFromContinuingOperations 73383577384971759776075375976
CF_DDA 186197230275337340360363359501
ChangeInWorkingCapital -79-71-67-170-4959-3-63-115164
CF_DeferredTax 00642-20-73-20-65-126-239
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00070756261554918
Cash Flow from Others 398084135720819109388
Cash Flow from Operations 8781,0411,0841,0381,1181,1941,1771,152963529

Zimmer Holdings Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14May14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations 21815215423522176176165157177
CF_DDA 8591929010150191919389
ChangeInWorkingCapital -148-742879-162164-33-17173-196
CF_DeferredTax 000-1260-23900-840
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 14121111111813131213
Cash Flow from Others 1188111787449
Cash Flow from Operations 18119029330018952925425635492
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK