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Bank of Montreal (NYSE:BMO)
Cash Flow from Operations
$-2,154 Mil (TTM As of Apr. 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 Apr. 2016, Bank of Montreal's Net Income From Continuing Operations was $759 Mil. Its DDA was $160 Mil. Its Change In Working Capital was $765 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 $-3,994 Mil. In all, Bank of Montreal's Cash Flow from Operations for the three months ended in Apr. 2016 was $-2,310 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. 2015 is calculated as:

Bank of Montreal's Cash Flow from Operations for the quarter that ended in Apr. 2016 is

Bank of Montreal Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2016 was 3496.07401073 (Jul. 2015 ) + -9969.4002448 (Oct. 2015 ) + 6629.36373874 (Jan. 2016 ) + -2310.03276642 (Apr. 2016 ) = $-2,154 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 Apr. 2016 was $759 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 Apr. 2016 was $160 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 Apr. 2016 was $765 Mil. It means Bank of Montreal's working capital increased by $765 Mil from Jan. 2016 to Apr. 2016 .

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 Apr. 2016 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 Apr. 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.

Bank of Montreal's stock based compensation for the three months ended in Apr. 2016 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).

Bank of Montreal's cash flow from others for the three months ended in Apr. 2016 was $-3,994 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 own currency.

Bank of Montreal Annual Data

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
NetIncomeFromContinuingOperations 2,3592,1861,6691,7662,8333,0534,2114,0493,8653,370
CF_DDA 358447367447462527691670666604
ChangeInWorkingCapital 3,139-22,855-6851,796-10,021-4,947-1,60510,27557-14,470
CF_DeferredTax -135-180-133176-61-310000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -5,3226,1022,3647,9413192,9827,099-3,948-7,19912,281
Cash Flow from Operations 399-14,3003,58312,127-6,4681,58410,39611,046-2,6111,785

Bank of Montreal Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
NetIncomeFromContinuingOperations 9709791,049954825810927929752759
CF_DDA 164166178174155159155158145160
ChangeInWorkingCapital 16,213-4,1786,500-17,8928,276-4,895427-17,9446,952765
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -8,8743,035-7,3755,549-1,1684,7891,9886,889-1,220-3,994
Cash Flow from Operations 8,4732351-11,2168,0888623,496-9,9696,629-2,310
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