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3M Co (FRA:MMM)
Cash Flow from Operations
€5,862 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, 3M Co's Net Income From Continuing Operations was €1,240 Mil. Its DDA was €0 Mil. Its Change In Working Capital was €0 Mil. Its cash flow from deferred tax was €0 Mil. Its Cash Flow from Discontinued Operations was €0 Mil. Its Stock Based Compensation was €0 Mil. And its Cash Flow from Others was €-316 Mil. In all, 3M Co's Cash Flow from Operations for the three months ended in Mar. 2017 was €924 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.

3M Co's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

 Cash Flow from Operations (A: Dec. 2016 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 4794.76727652 + 1397.28884254 + -6.63570006636 + 6.63570006636 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 282.491231396 + -159.256801593 = 6,315

3M Co's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

 Cash Flow from Operations (Q: Mar. 2017 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 1239.83169705 + 0 + 0 + 0 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 0 + -316.035530622 = 924

3M Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 1143.64542542 (Jun. 2016 ) + 1700.08019246 (Sep. 2016 ) + 2094.03734951 (Dec. 2016 ) + 923.796166433 (Mar. 2017 ) = €5,862 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.

3M Co's net income from continuing operations for the three months ended in Mar. 2017 was €1,240 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

3M Co's depreciation, depletion and amortization for the three months ended in Mar. 2017 was €0 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.

3M Co's change in working capital for the three months ended in Mar. 2017 was €0 Mil. It means 3M Co's working capital stayed the same from Dec. 2016 to Mar. 2017 .

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

3M Co's cash flow from deferred tax for the three months ended in Mar. 2017 was €0 Mil.

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

3M Co'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.

3M Co's stock based compensation for the three months ended in Mar. 2017 was €0 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).

3M Co's cash flow from others for the three months ended in Mar. 2017 was €-316 Mil.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

3M Co Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 NetIncomeFromContinuingOperations 2,852 2,605 2,225 3,147 3,311 3,437 3,446 4,054 4,444 4,795 CF_DDA 736 853 794 847 939 981 1,001 1,142 1,317 1,397 ChangeInWorkingCapital 170 -107 366 -108 -395 -169 -239 -81 -725 -7 CF_DeferredTax -149 73 481 -129 135 25 -122 -118 363 7 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 157 149 149 207 192 170 175 227 253 282 Cash Flow from Others -849 -220 -626 -53 -166 -406 -15 151 241 -159 Cash Flow from Operations 2,917 3,354 3,390 3,911 4,016 4,039 4,246 5,374 5,894 6,315

3M Co Quarterly Data

 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 NetIncomeFromContinuingOperations 956 1,110 1,161 1,157 954 1,148 1,151 1,186 1,096 1,240 CF_DDA 284 313 307 316 364 320 326 328 364 0 ChangeInWorkingCapital 449 -540 -567 -204 605 -434 -307 257 505 0 CF_DeferredTax -69 41 224 87 2 -34 -85 30 101 0 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 48 128 44 41 39 129 44 45 51 0 Cash Flow from Others 102 -54 24 86 182 3 16 -146 -24 -316 Cash Flow from Operations 1,770 998 1,192 1,483 2,146 1,131 1,144 1,700 2,094 924
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