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E*TRADE Financial Corp (NAS:ETFC)
Cash Flow from Operations
$892 Mil (TTM As of Sep. 2016)

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 Sep. 2016, E*TRADE Financial Corp's Net Income From Continuing Operations was $139 Mil. Its DDA was $62 Mil. Its Change In Working Capital was $201 Mil. Its cash flow from deferred tax was $76 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $7 Mil. And its Cash Flow from Others was $-84 Mil. In all, E*TRADE Financial Corp's Cash Flow from Operations for the three months ended in Sep. 2016 was $401 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. 2015 is calculated as:

E*TRADE Financial Corp's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

E*TRADE Financial Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 164 (Dec. 2015 ) + 96 (Mar. 2016 ) + 231 (Jun. 2016 ) + 401 (Sep. 2016 ) = $892 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.

E*TRADE Financial Corp's net income from continuing operations for the three months ended in Sep. 2016 was $139 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 Sep. 2016 was $62 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 Sep. 2016 was $201 Mil. It means E*TRADE Financial Corp's working capital increased by $201 Mil from Jun. 2016 to Sep. 2016 .

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 Sep. 2016 was $76 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 Sep. 2016 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 Sep. 2016 was $7 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 Sep. 2016 was $-84 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.

E*TRADE Financial Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations -1,442-809-1,298-28157-11386293268552
CF_DDA 282293346339341409395331325102
ChangeInWorkingCapital -1,2261,578-77159237-644286-106590
CF_DeferredTax 0-447-489-868-137107155-1760
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 042462514212024340
Cash Flow from Others 3,1801,5902,44364033930522343220
Cash Flow from Operations 7952,2479721,0491,096-1591,1177018320

E*TRADE Financial Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 864140292-15389153133139127
CF_DDA 86868997855453596227
ChangeInWorkingCapital -151160-68169867-25-12062010
CF_DeferredTax 422721-170-93664272760
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 567106118670
Cash Flow from Others 013-6-8367-31-40-45-840
Cash Flow from Operations 68333-530919279164962314010
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