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Morgan Stanley (NYSE:MS)
Cash Flow from Operations
$26,473 Mil (TTM As of Sep. 2014)

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. 2014, Morgan Stanley's Net Income From Continuing Operations was $1,752 Mil. Its DDA was $136 Mil. Its Change In Working Capital was $-233 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $210 Mil. In all, Morgan Stanley's Cash Flow from Operations for the three months ended in Sep. 2014 was $1,865 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.

Morgan Stanley's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

Morgan Stanley's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Morgan Stanley Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 18733 (Dec. 2013 ) + 5327 (Mar. 2014 ) + 548 (Jun. 2014 ) + 1865 (Sep. 2014 ) = $26,473 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.

Morgan Stanley's net income from continuing operations for the three months ended in Sep. 2014 was $1,752 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

Morgan Stanley's depreciation, depletion and amortization for the three months ended in Sep. 2014 was $136 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.

Morgan Stanley's change in working capital for the three months ended in Sep. 2014 was $-233 Mil. It means Morgan Stanley's working capital declined by $233 Mil from Jun. 2014 to Sep. 2014 .

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

Morgan Stanley's cash flow from deferred tax for the three months ended in Sep. 2014 was $0 Mil.

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

Morgan Stanley's cash flow from discontinued operations for the three months ended in Sep. 2014 was $0 Mil.

6. 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).

Morgan Stanley's cash flow from others for the three months ended in Sep. 2014 was $210 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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.

Morgan Stanley Annual Data

Nov04Nov05Nov06Nov07Nov08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 4,4864,9397,4723,2091,7071,4065,7024,6457163,613
CF_DDA 8058158764757941,2241,4191,4041,5811,511
ChangeInWorkingCapital -31,320-6,884-72,106-26,53773,508-48,64032,3777,41121,98329,412
CF_DeferredTax -195-1,076111-2,046-1,224-932-129413-639-117
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 1,718-29,1462,8442,650-1,3689911,2452,0191,1181,134
Cash Flow from Operations -24,506-31,352-60,803-22,24973,417-45,95140,61415,89224,75935,553

Morgan Stanley Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 750-9567881,2311,1911,0181731,5841,9171,752
CF_DDA 418425363360356368427326286136
ChangeInWorkingCapital 8,1015,3141,4762,71612,097-3,28017,8793,238-1,974-233
CF_DeferredTax 00-639000-117000
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 1975175188263312371179319210
Cash Flow from Operations 9,4665,3001,9934,49513,907-1,58218,7335,3275481,865
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