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Johnson & Johnson (NYSE:JNJ)
Cash Flow from Operations
$19,491 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, Johnson & Johnson's Net Income From Continuing Operations was $4,422 Mil. Its DDA was $912 Mil. Its Change In Working Capital was $-2,647 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $229 Mil. And its Cash Flow from Others was $-3 Mil. In all, Johnson & Johnson's Cash Flow from Operations for the three months ended in Mar. 2017 was $2,913 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.

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

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

Johnson & Johnson Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 4564 (Jun. 2016 ) + 5361 (Sep. 2016 ) + 6653 (Dec. 2016 ) + 2913 (Mar. 2017 ) = $19,491 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.

Johnson & Johnson's net income from continuing operations for the three months ended in Mar. 2017 was $4,422 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

Johnson & Johnson's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $912 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.

Johnson & Johnson's change in working capital for the three months ended in Mar. 2017 was $-2,647 Mil. It means Johnson & Johnson's working capital declined by $2,647 Mil from Dec. 2016 to Mar. 2017 .

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

Johnson & Johnson's cash flow from deferred tax for the three months ended in Mar. 2017 was $0 Mil.

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

Johnson & Johnson'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.

Johnson & Johnson's stock based compensation for the three months ended in Mar. 2017 was $229 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).

Johnson & Johnson's cash flow from others for the three months ended in Mar. 2017 was $-3 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.

Johnson & Johnson Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 10,57612,94912,26613,3349,67210,51413,83116,32315,40916,540
CF_DDA 2,7772,8322,7742,9393,1583,6664,1043,8953,7463,754
ChangeInWorkingCapital 1,226-1,7251,281-8701,491-1,061-828-8271,629-1,773
CF_DeferredTax -1,76222-436356-83600441-270-341
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 698627628614621662728792874878
Cash Flow from Others 1,50726758121921,615-421-1,914-1,819-291
Cash Flow from Operations 15,02214,97216,57116,38514,29815,39617,41418,71019,56918,767

Johnson & Johnson Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations 2,5214,3204,5163,3583,2154,4573,9974,2723,8144,422
CF_DDA 9918958899291,0338919009081,055912
ChangeInWorkingCapital 674-3,0331,0171,5882,057-3,838-246-472,358-2,647
CF_DeferredTax 144545-261-51-50300000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 146204270203197205274225174229
Cash Flow from Others 128-59-959113-914474-3613-748-3
Cash Flow from Operations 4,6042,8725,4726,1405,0852,1894,5645,3616,6532,913
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