Switch to:
Legg Mason Inc (NYSE:LM)
Cash Flow from Operations
$441 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, Legg Mason Inc's Net Income From Continuing Operations was $87 Mil. Its DDA was $19 Mil. Its Change In Working Capital was $190 Mil. Its cash flow from deferred tax was $14 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $18 Mil. And its Cash Flow from Others was $-24 Mil. In all, Legg Mason Inc's Cash Flow from Operations for the three months ended in Sep. 2016 was $304 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.

Legg Mason Inc's Cash Flow from Operations for the fiscal year that ended in Mar. 2016 is calculated as:

Legg Mason Inc's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Legg Mason Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 154.684 (Dec. 2015 ) + 148.059 (Mar. 2016 ) + -165.97 (Jun. 2016 ) + 303.829 (Sep. 2016 ) = $441 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.

Legg Mason Inc's net income from continuing operations for the three months ended in Sep. 2016 was $87 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

Legg Mason Inc's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $19 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.

Legg Mason Inc's change in working capital for the three months ended in Sep. 2016 was $190 Mil. It means Legg Mason Inc's working capital increased by $190 Mil from Jun. 2016 to Sep. 2016 .

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

Legg Mason Inc's cash flow from deferred tax for the three months ended in Sep. 2016 was $14 Mil.

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

Legg Mason Inc'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.

Legg Mason Inc's stock based compensation for the three months ended in Sep. 2016 was $18 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).

Legg Mason Inc's cash flow from others for the three months ended in Sep. 2016 was $-24 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.

Legg Mason Inc Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
NetIncomeFromContinuingOperations 646268-1,965211246231-360282243-33
CF_DDA 1381801381141039488635560
ChangeInWorkingCapital -11615-794998-6551114-76119-30
CF_DeferredTax 129-173-8171148049-157118100-8
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 41495747564959666693
Cash Flow from Others 688063,791-70-823559-16-15372
Cash Flow from Operations 9051,1444101,413412497303437568454

Legg Mason Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 74580849563-139-524587
CF_DDA 14141314141417162119
ChangeInWorkingCapital -109917364-14691196-261190
CF_DeferredTax 4169272323-103491614
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 16181615191818383718
Cash Flow from Others -610-2-17-2223512-25-24
Cash Flow from Operations -81392491873149155148-166304
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)
FEEDBACK