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American Express Co (NYSE:AXP)
Cash Flow from Operations
$4,285 Mil (TTM As of Mar. 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 Mar. 2014, American Express Co's Net Income From Continuing Operations was $1,432 Mil. Its DDA was $249 Mil. Its Change In Working Capital was $987 Mil. Its cash flow from deferred tax was $44 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $573 Mil. In all, American Express Co's Cash Flow from Operations for the three months ended in Mar. 2014 was $3,285 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.

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

American Express Co's Cash Flow from Operations for the quarter that ended in Mar. 2014 is

American Express Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2014 was 2682 (Jun. 2013 ) + -2026 (Sep. 2013 ) + 344 (Dec. 2013 ) + 3285 (Mar. 2014 ) = $4,285 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.

American Express Co's net income from continuing operations for the three months ended in Mar. 2014 was $1,432 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

American Express Co's depreciation, depletion and amortization for the three months ended in Mar. 2014 was $249 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.

American Express Co's change in working capital for the three months ended in Mar. 2014 was $987 Mil. It means American Express Co's working capital increased by $987 Mil from Dec. 2013 to Mar. 2014 .

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

American Express Co's cash flow from deferred tax for the three months ended in Mar. 2014 was $44 Mil.

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

American Express Co's cash flow from discontinued operations for the three months ended in Mar. 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).

American Express Co's cash flow from others for the three months ended in Mar. 2014 was $573 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.

American Express Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 3,4453,7343,7074,0122,8712,1374,0574,8994,4825,359
CF_DDA 6005676086487121,0709179189911,020
ChangeInWorkingCapital 9089621,869-106-2,040-7511261,720-896-9
CF_DeferredTax 934-266-378-851442-1,4291,135818218-283
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 3,2563,0483,3064,7886,1565,3102,4941,4132,2872,460
Cash Flow from Operations 9,1438,0459,1128,4918,1416,3378,7299,7687,0828,547

American Express Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
NetIncomeFromContinuingOperations 1,1921,2561,3391,2506371,2801,4051,3661,3081,432
CF_DDA 185254253244240245252266257249
ChangeInWorkingCapital 1,7611,3701,0141,971-5,2515,427534-4,089-1,881987
CF_DeferredTax -22748171-14013983-284-1395744
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 483504533547703512775570603573
Cash Flow from Operations 3,3943,4323,3103,872-3,5327,5472,682-2,0263443,285
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