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GuruFocus has detected 5 Warning Signs with Check Point Software Technologies Ltd $CHKP.
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Check Point Software Technologies Ltd (NAS:CHKP)
Cash Flow from Operations
$978 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, Check Point Software Technologies Ltd's Net Income From Continuing Operations was $183 Mil. Its DDA was $4 Mil. Its Change In Working Capital was $138 Mil. Its cash flow from deferred tax was $11 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $19 Mil. And its Cash Flow from Others was $0 Mil. In all, Check Point Software Technologies Ltd's Cash Flow from Operations for the three months ended in Mar. 2017 was $355 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.

Check Point Software Technologies Ltd's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Check Point Software Technologies Ltd's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

Check Point Software Technologies Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 202.45 (Jun. 2016 ) + 213.924 (Sep. 2016 ) + 206.114 (Dec. 2016 ) + 355.413 (Mar. 2017 ) = $978 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.

Check Point Software Technologies Ltd's net income from continuing operations for the three months ended in Mar. 2017 was $183 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

Check Point Software Technologies Ltd's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $4 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.

Check Point Software Technologies Ltd's change in working capital for the three months ended in Mar. 2017 was $138 Mil. It means Check Point Software Technologies Ltd's working capital increased by $138 Mil from Dec. 2016 to Mar. 2017 .

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

Check Point Software Technologies Ltd's cash flow from deferred tax for the three months ended in Mar. 2017 was $11 Mil.

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

Check Point Software Technologies Ltd's cash flow from discontinued operations for the three months ended in Mar. 2017 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.

Check Point Software Technologies Ltd's stock based compensation for the three months ended in Mar. 2017 was $19 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).

Check Point Software Technologies Ltd's cash flow from others for the three months ended in Mar. 2017 was $0 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.

Check Point Software Technologies Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 281324358453544620653660686725
CF_DDA 48466059521512111415
ChangeInWorkingCapital 204411614410215011143176154
CF_DeferredTax -19-14-11-12-12-10-12-16-33
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0323135404551637683
Cash Flow from Others 452491721-1521103
Cash Flow from Operations 375434557689743850811786947946

Check Point Software Technologies Ltd Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations 186161163168195167166170222183
CF_DDA 3344444434
ChangeInWorkingCapital 191021043201341925-24138
CF_DeferredTax -61-1-3-131-3-1-3111
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 17181920201822212219
Cash Flow from Others -9-0-2-416-1-5-5140
Cash Flow from Operations 210285193228242324202214206355
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