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Air Products & Chemicals Inc (NYSE:APD)
Cash Flow from Operations
$2,481 Mil (TTM As of Mar. 2017)

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. 2017, Air Products & Chemicals Inc's Net Income From Continuing Operations was $304 Mil. Its DDA was $212 Mil. Its Change In Working Capital was $-214 Mil. Its cash flow from deferred tax was $-45 Mil. Its Cash Flow from Discontinued Operations was $3,309 Mil. Its Stock Based Compensation was $10 Mil. And its Cash Flow from Others was $-3,289 Mil. In all, Air Products & Chemicals Inc's Cash Flow from Operations for the three months ended in Mar. 2017 was $287 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.

Air Products & Chemicals Inc's Cash Flow from Operations for the fiscal year that ended in Sep. 2016 is calculated as:

Air Products & Chemicals Inc's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

Air Products & Chemicals Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 746.8 (Jun. 2016 ) + 873.1 (Sep. 2016 ) + 574.3 (Dec. 2016 ) + 286.9 (Mar. 2017 ) = $2,481 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.

Air Products & Chemicals Inc's net income from continuing operations for the three months ended in Mar. 2017 was $304 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

Air Products & Chemicals Inc's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $212 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.

Air Products & Chemicals Inc's change in working capital for the three months ended in Mar. 2017 was $-214 Mil. It means Air Products & Chemicals Inc's working capital declined by $214 Mil from Dec. 2016 to Mar. 2017 .

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

Air Products & Chemicals Inc's cash flow from deferred tax for the three months ended in Mar. 2017 was $-45 Mil.

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

Air Products & Chemicals Inc's cash flow from discontinued operations for the three months ended in Mar. 2017 was $3,309 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.

Air Products & Chemicals Inc's stock based compensation for the three months ended in Mar. 2017 was $10 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).

Air Products & Chemicals Inc's cash flow from others for the three months ended in Mar. 2017 was $-3,289 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.

Air Products & Chemicals Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
NetIncomeFromContinuingOperations 1,0369106511,0551,1349991,0049871,2851,515
CF_DDA 840869840863834841907957936926
ChangeInWorkingCapital -357-139-47-443-115100-208-247225-20
CF_DeferredTax 1437-52961866513126363
Cash Flow from Disc. Op. 0000179913-147-358-177
Stock Based Compensation 0616049454444444638
Cash Flow from Others -35-58-124-98-375-1,083-220466310363
Cash Flow from Operations 1,4971,6801,3291,5221,7101,7651,5532,1862,4462,707

Air Products & Chemicals Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations 325294321346281394356402252304
CF_DDA 236233233235215232231231206212
ChangeInWorkingCapital 6-41146114-91-2369517464-214
CF_DeferredTax 2627-35-163244-7-18-24-45
Cash Flow from Disc. Op. 000093-45-34-21-103,309
Stock Based Compensation 12131388999910
Cash Flow from Others -118-261184-141115979676-3,289
Cash Flow from Operations 487501687772397514747873574287
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