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Discover Financial Services (NYSE:DFS)
Cash Flow from Operations
$3,808 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, Discover Financial Services's Net Income From Continuing Operations was $644 Mil. Its DDA was $93 Mil. Its Change In Working Capital was $1,156 Mil. Its cash flow from deferred tax was $28 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $-866 Mil. In all, Discover Financial Services's Cash Flow from Operations for the three months ended in Sep. 2014 was $1,055 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. 2013 is calculated as:

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

Discover Financial Services Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 982 (Dec. 2013 ) + 1129 (Mar. 2014 ) + 642 (Jun. 2014 ) + 1055 (Sep. 2014 ) = $3,808 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 Sep. 2014 was $644 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 Sep. 2014 was $93 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 Sep. 2014 was $1,156 Mil. It means Discover Financial Services's working capital increased by $1,156 Mil from Jun. 2014 to Sep. 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 Sep. 2014 was $28 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 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).

Discover Financial Services's cash flow from others for the three months ended in Sep. 2014 was $-866 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.

Discover Financial Services Annual Data

Nov05Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec12Dec13
NetIncomeFromContinuingOperations 5781,0775899281,2767652,2272,34502,470
CF_DDA 113197235231203172202670334
ChangeInWorkingCapital 35-591481,806-109-2333282370-521
CF_DeferredTax -4476-218-262-621132321460322
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 9549621,3851,8012,2893,056803460912
Cash Flow from Operations 1,6361,7212,0384,5043,5983,8733,6103,04103,517

Discover Financial Services Quarterly Data

Aug12Nov12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 6272,3450673602593602631644644
CF_DDA 4235068958487909193
ChangeInWorkingCapital 1921190529-2,7611,834-123193-1,4831,156
CF_DeferredTax 33-13012142-9168232528
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -200-1,80401012,617-2,0542481921,365-866
Cash Flow from Operations 65688201,4925954489821,1296421,055
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