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Bank of Montreal (NYSE:BMO)
Cash Flow from Operations
$-4,224 Mil (TTM As of Jul. 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 Jul. 2014, Bank of Montreal's Net Income From Continuing Operations was $1,030 Mil. Its DDA was $175 Mil. Its Change In Working Capital was $-1,094 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 $234 Mil. In all, Bank of Montreal's Cash Flow from Operations for the three months ended in Jul. 2014 was $345 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.

Bank of Montreal's Cash Flow from Operations for the fiscal year that ended in Oct. 2013 is calculated as:

Cash Flow from Operations(A: Oct. 2013 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=4049.57102002+678.741658723+10067.6835081+0
+Cash Flow from Discontinued Operations+Cash Flow from Others
+0+-3897.04480458
=10,899

Bank of Montreal's Cash Flow from Operations for the quarter that ended in Jul. 2014 is

Cash Flow from Operations(Q: Jul. 2014 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=1030.19213175+174.748398902+-1094.23604758+0
+Cash Flow from Discontinued Operations+Cash Flow from Others
+0+234.217749314
=345

Bank of Montreal Cash Flow from Operations for the trailing twelve months (TTM) ended in Jul. 2014 was -4571.02001907 (Oct. 2013 ) + 0 (Jan. 2014 ) + 1.83654729109 (Apr. 2014 ) + 344.922232388 (Jul. 2014 ) = $-4,224 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.

Bank of Montreal's net income from continuing operations for the three months ended in Jul. 2014 was $1,030 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

Bank of Montreal's depreciation, depletion and amortization for the three months ended in Jul. 2014 was $175 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.

Bank of Montreal's change in working capital for the three months ended in Jul. 2014 was $-1,094 Mil. It means Bank of Montreal's working capital declined by $1,094 Mil from Apr. 2014 to Jul. 2014 .

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

Bank of Montreal's cash flow from deferred tax for the three months ended in Jul. 2014 was $0 Mil.

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

Bank of Montreal's cash flow from discontinued operations for the three months ended in Jul. 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).

Bank of Montreal's cash flow from others for the three months ended in Jul. 2014 was $234 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.

Bank of Montreal Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
NetIncomeFromContinuingOperations 1,9262,0312,3452,2041,6251,6872,7743,0384,2024,050
CF_DDA 392399356451358446464525705679
ChangeInWorkingCapital -935-3903,120-23,044-6671,789-10,070-4,9235,01910,068
CF_DeferredTax 13177-134-182-129176-61000
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 383-8,141-5,2896,1522,3027,9833942,937363-3,897
Cash Flow from Operations 1,898-6,024397-14,4193,48912,081-6,5001,57710,28910,899

Bank of Montreal Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
NetIncomeFromContinuingOperations 1,0189781,0851,0269431,0791,07409881,030
CF_DDA 1671771841681681661890167175
ChangeInWorkingCapital -3,961581-15,3806,9799311,480-1,4390-12,259-1,094
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -5021,88382,392491131-4,396011,106234
Cash Flow from Operations -3,2783,619-14,10310,5652,5332,856-4,57102345
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