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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.
BAE Systems (OTCPK:BAESY) Cash Flow from Operations Explanation
For companies reported in indirect method, 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.
BAE Systems's net income from continuing operations for the
six
months ended in Jun. 2026 was $1,405 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
BAE Systems's depreciation, depletion and amortization for the
six
months ended in Jun. 2026 was $776 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.
BAE Systems's change in working capital for the
six
months ended in Jun. 2026 was $503 Mil. It means BAE Systems's working capital
increased by $503 Mil
from Dec. 2025 to Jun. 2026 .
4. Deferred Tax:
It is the cash flow generated from deferred tax.
BAE Systems's cash flow from deferred tax for the
six
months ended in Jun. 2026 was $305 Mil.
BAE Systems's cash from discontinued operating Activities for the
six
months ended in Jun. 2026 was $0 Mil.
6. Asset Impairment Charge:
It is the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value.
BAE Systems's asset impairment charge for the
six
months ended in Jun. 2026 was $0 Mil.
7. 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.
BAE Systems's stock based compensation for the
six
months ended in Jun. 2026 was $111 Mil.
8. 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).
BAE Systems's cash flow from others for the
six
months ended in Jun. 2026 was $-109 Mil.
BAE Systems Cash Flow from Operations Related Terms
BAE Systems Cash Flow from Operations Historical Data
* Premium members only.
The historical data trend for BAE Systems's Cash Flow from Operations can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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.
BAE Systems's Cash Flow from Operations for the fiscal year that ended in Dec. 2025 is calculated as:
Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was $7,486 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Cash Flow from Operations of $7,486 Mil mean?
BAE Systems (BAESY) has a Cash Flow from Operations of $7,486 Mil as of Jun. 2026. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for BAE Systems and its competitors.
Is BAE Systems' Cash Flow from Operations too high?
BAE Systems' current Cash Flow from Operations is $7,486 Mil. Overall, BAE Systems has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Cash Flow from Operations compare to SPCX and GE?
BAE Systems' Cash Flow from Operations of $7,486 Mil can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Flow from Operations for an Aerospace & Defense company?
A good Cash Flow from Operations depends on the Aerospace & Defense industry context. However, Cash Flow from Operations should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Flow from Operations mean?
A high Cash Flow from Operations can signal that a stock is expensive relative to its fundamentals. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for BAE Systems and its competitors. BAE Systems's current Cash Flow from Operations is $7,486 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (BAESY) is currently considered Modestly Overvalued. The stock's GF Value™ is $97.49, compared to a current price of $119.85 — trading 22.9% above its estimated fair value. The current Cash Flow from Operations is $7,486 Mil. BAE Systems' overall GF Score™ is 87/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Flow from Operations calculated?
Cash Flow from Operations is calculated from a company's financial statements. For BAE Systems (BAESY), the current Cash Flow from Operations is $7,486 Mil as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BAE Systems (BAESY) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of $119.85 is trading 22.9% above its estimated GF Value™ of $97.49.
GuruFocus considers BAE Systems to be Modestly Overvalued.
Key valuation signals for BAESY:
Cash Flow from Operations: $7,486 Mil
GF Value™: $97.49 vs. price of $119.85 (22.9% above fair value)
No single metric tells the full story. See the BAESY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
87GF Score
Get the complete analysis for BAESY
Cash Flow from Operations is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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