Switch to:
E*Trade Financial Corp (NAS:ETFC)
Cash Flow from Operations
$790 Mil (TTM As of Jun. 2015)

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 Jun. 2015, E*Trade Financial Corp's Net Income From Continuing Operations was $292 Mil. Its DDA was $97 Mil. Its Change In Working Capital was $698 Mil. Its cash flow from deferred tax was $-170 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $10 Mil. And its Cash Flow from Others was $-8 Mil. In all, E*Trade Financial Corp's Cash Flow from Operations for the three months ended in Jun. 2015 was $919 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.

E*Trade Financial Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

E*Trade Financial Corp's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

E*Trade Financial Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 68 (Sep. 2014 ) + 333 (Dec. 2014 ) + -530 (Mar. 2015 ) + 919 (Jun. 2015 ) = $790 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.

E*Trade Financial Corp's net income from continuing operations for the three months ended in Jun. 2015 was $292 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

E*Trade Financial Corp's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $97 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.

E*Trade Financial Corp's change in working capital for the three months ended in Jun. 2015 was $698 Mil. It means E*Trade Financial Corp's working capital increased by $698 Mil from Mar. 2015 to Jun. 2015 .

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

E*Trade Financial Corp's cash flow from deferred tax for the three months ended in Jun. 2015 was $-170 Mil.

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

E*Trade Financial Corp's cash flow from discontinued operations for the three months ended in Jun. 2015 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.

E*Trade Financial Corp's stock based compensation for the three months ended in Jun. 2015 was $10 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).

E*Trade Financial Corp's cash flow from others for the three months ended in Jun. 2015 was $-8 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 own currency.

E*Trade Financial Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 430629-1,442-512-1,298-28157-11386293
CF_DDA 363287282293346339341410395331
ChangeInWorkingCapital 24514-1,2261,578-77159237-643286-106
CF_DeferredTax 000-447-489-868-137107155
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00042462514212024
Cash Flow from Others -182-493,1801,2922,4436403393042234
Cash Flow from Operations 8578817952,2479721,0491,096-1591,117701

E*Trade Financial Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 35-5447589769864140292
CF_DDA 1141019684798086868997
ChangeInWorkingCapital 259-41941036-349234-151160-681698
CF_DeferredTax 18834473650422721-170
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 96508556710
Cash Flow from Others 24168274-145013-6-8
Cash Flow from Operations 459-190619229-14344368333-530919
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK