Switch to:
Discover Financial Services (NYSE:DFS)
Cash Flow from Operations
$3,826 Mil (TTM As of Dec. 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 Dec. 2014, Discover Financial Services's Net Income From Continuing Operations was $404 Mil. Its DDA was $95 Mil. Its Change In Working Capital was $-31 Mil. Its cash flow from deferred tax was $-87 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $14 Mil. And its Cash Flow from Others was $605 Mil. In all, Discover Financial Services's Cash Flow from Operations for the three months ended in Dec. 2014 was $1,000 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.

Discover Financial Services's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Discover Financial Services's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Discover Financial Services Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 1129 (Mar. 2014 ) + 642 (Jun. 2014 ) + 1055 (Sep. 2014 ) + 1000 (Dec. 2014 ) = $3,826 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.

Discover Financial Services's net income from continuing operations for the three months ended in Dec. 2014 was $404 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

Discover Financial Services's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $95 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.

Discover Financial Services's change in working capital for the three months ended in Dec. 2014 was $-31 Mil. It means Discover Financial Services's working capital declined by $31 Mil from Sep. 2014 to Dec. 2014 .

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

Discover Financial Services's cash flow from deferred tax for the three months ended in Dec. 2014 was $-87 Mil.

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

Discover Financial Services's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

Discover Financial Services's stock based compensation for the three months ended in Dec. 2014 was $14 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).

Discover Financial Services's cash flow from others for the three months ended in Dec. 2014 was $605 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.

Discover Financial Services Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14
NetIncomeFromContinuingOperations 5781,0775899281,2767652,2272,3452,4702,323
CF_DDA 11319723523120317220267334369
ChangeInWorkingCapital 35-591481,806-109112328237-521-165
CF_DeferredTax -4476-218-262-62113232146322-11
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00093443744475960
Cash Flow from Others 9549621,3851,7092,2453,019759-18531,250
Cash Flow from Operations 1,6361,7212,0384,5043,5984,2183,6103,0413,5173,826

Discover Financial Services Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations 06736025936026316446444040
CF_DDA 068958487909193950
ChangeInWorkingCapital 0529-316-611-123193-1,4831,156-310
CF_DeferredTax 012142-9168232528-870
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 017141414181414140
Cash Flow from Others 0841583772341741,351-8806050
Cash Flow from Operations 01,4925954489821,1296421,0551,0000
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