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Alphabet Inc (NAS:GOOG)
Cash Flow from Operations
$37,926 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, Alphabet Inc's Net Income From Continuing Operations was $5,426 Mil. Its DDA was $1,503 Mil. Its Change In Working Capital was $-79 Mil. Its cash flow from deferred tax was $613 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $2,009 Mil. And its Cash Flow from Others was $76 Mil. In all, Alphabet Inc's Cash Flow from Operations for the three months ended in Mar. 2017 was $9,548 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.

Alphabet Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Alphabet Inc's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

Alphabet Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 9120 (Jun. 2016 ) + 9845 (Sep. 2016 ) + 9413 (Dec. 2016 ) + 9548 (Mar. 2017 ) = $37,926 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.

Alphabet Inc's net income from continuing operations for the three months ended in Mar. 2017 was $5,426 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

Alphabet Inc's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $1,503 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.

Alphabet Inc's change in working capital for the three months ended in Mar. 2017 was $-79 Mil. It means Alphabet Inc's working capital declined by $79 Mil from Dec. 2016 to Mar. 2017 .

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

Alphabet Inc's cash flow from deferred tax for the three months ended in Mar. 2017 was $613 Mil.

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

Alphabet Inc'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.

Alphabet Inc's stock based compensation for the three months ended in Mar. 2017 was $2,009 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).

Alphabet Inc's cash flow from others for the three months ended in Mar. 2017 was $76 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.

Alphabet Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 4,2044,2276,5208,5059,73710,73712,73314,13616,34819,478
CF_DDA 9681,5001,5241,3961,8512,9623,9394,9795,0636,144
ChangeInWorkingCapital 319327486-99630898156672-4093,300
CF_DeferredTax -164-225-2689343-266-437-104-179-38
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 8691,1201,1641,3761,9742,6923,3434,2795,2036,703
Cash Flow from Others -419904-110-10630-404-1,075-938546449
Cash Flow from Operations 5,7757,8539,31611,08114,56516,61918,65923,02426,57236,036

Alphabet Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations 4,6753,5153,9313,9794,9234,2074,8775,0615,3335,426
CF_DDA 1,2671,1771,2341,2481,4041,3711,4901,5961,6871,503
ChangeInWorkingCapital -260679948-138-1,898-1721,2591,637576-79
CF_DeferredTax 39471-221-416387414-50-245-157613
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1,1871,2031,1321,4321,4361,4941,5031,8601,8462,009
Cash Flow from Others -25177724035734441-6412876
Cash Flow from Operations 7,0126,7227,0966,1456,6097,6589,1209,8459,4139,548
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