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Nuance Communications Inc (NAS:NUAN)
Cash Flow from Operations
$515 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, Nuance Communications Inc's Net Income From Continuing Operations was $-34 Mil. Its DDA was $59 Mil. Its Change In Working Capital was $13 Mil. Its cash flow from deferred tax was $4 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $40 Mil. And its Cash Flow from Others was $44 Mil. In all, Nuance Communications Inc's Cash Flow from Operations for the three months ended in Mar. 2017 was $125 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.

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

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

Nuance Communications Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 125.864 (Jun. 2016 ) + 138.868 (Sep. 2016 ) + 124.9 (Dec. 2016 ) + 125.434 (Mar. 2017 ) = $515 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.

Nuance Communications Inc's net income from continuing operations for the three months ended in Mar. 2017 was $-34 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

Nuance Communications Inc's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $59 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.

Nuance Communications Inc's change in working capital for the three months ended in Mar. 2017 was $13 Mil. It means Nuance Communications Inc's working capital increased by $13 Mil from Dec. 2016 to Mar. 2017 .

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

Nuance Communications Inc's cash flow from deferred tax for the three months ended in Mar. 2017 was $4 Mil.

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

Nuance Communications 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.

Nuance Communications Inc's stock based compensation for the three months ended in Mar. 2017 was $40 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).

Nuance Communications Inc's cash flow from others for the three months ended in Mar. 2017 was $44 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.

Nuance Communications Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
NetIncomeFromContinuingOperations -14-30-19-1938207-115-150-115-12
CF_DDA 5099134157171187209222231231
ChangeInWorkingCapital 544403343011087122144
CF_DeferredTax 140264-44-152-2-2217-12
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 06971100147175159193177164
Cash Flow from Others 5114621412634295751
Cash Flow from Operations 106196259296357473395358488566

Nuance Communications Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations -50-14-39-11-12-7-1218-24-34
CF_DDA 57575859585857585859
ChangeInWorkingCapital 33333026395522273513
CF_DeferredTax 2419-043-1824
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 47314257423842413940
Cash Flow from Others 792912141213121544
Cash Flow from Operations 96120120152141160126139125125
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