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GuruFocus has detected 3 Warning Signs with Seagate Technology PLC $STX.
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Seagate Technology PLC (NAS:STX)
Cash Flow from Operations
$1,942 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, Seagate Technology PLC's Net Income From Continuing Operations was $194 Mil. Its DDA was $182 Mil. Its Change In Working Capital was $-21 Mil. Its cash flow from deferred tax was $9 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $37 Mil. And its Cash Flow from Others was $25 Mil. In all, Seagate Technology PLC's Cash Flow from Operations for the three months ended in Mar. 2017 was $426 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.

Seagate Technology PLC's Cash Flow from Operations for the fiscal year that ended in Jun. 2016 is calculated as:

Seagate Technology PLC's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

Seagate Technology PLC Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 269 (Jun. 2016 ) + 592 (Sep. 2016 ) + 655 (Dec. 2016 ) + 426 (Mar. 2017 ) = $1,942 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.

Seagate Technology PLC's net income from continuing operations for the three months ended in Mar. 2017 was $194 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

Seagate Technology PLC's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $182 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.

Seagate Technology PLC's change in working capital for the three months ended in Mar. 2017 was $-21 Mil. It means Seagate Technology PLC's working capital declined by $21 Mil from Dec. 2016 to Mar. 2017 .

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

Seagate Technology PLC's cash flow from deferred tax for the three months ended in Mar. 2017 was $9 Mil.

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

Seagate Technology PLC'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.

Seagate Technology PLC's stock based compensation for the three months ended in Mar. 2017 was $37 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).

Seagate Technology PLC's cash flow from others for the three months ended in Mar. 2017 was $25 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.

Seagate Technology PLC Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
NetIncomeFromContinuingOperations 9131,262-3,1251,6095112,8621,8381,5701,742248
CF_DDA 851844931780754814873879841815
ChangeInWorkingCapital -683324300-569-116-424274-1-142464
CF_DeferredTax -36510306-3646-28-70-672-2
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 008357515176118137120
Cash Flow from Others 227982,3289118-1356596735
Cash Flow from Operations 9432,5388231,9321,2643,2623,0472,5582,6471,680

Seagate Technology PLC Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations 93329113734164-2070167297194
CF_DDA 208203212208209198200200191182
ChangeInWorkingCapital 234-143-180539-24-28-2319198-21
CF_DeferredTax -6150000129
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 31333133323025403337
Cash Flow from Others 43-112310125-3-73425
Cash Flow from Operations 1,443374228824382205269592655426
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