Switch to:
Dow Chemical Co (NYSE:DOW)
Cash Flow from Operations
$6,310 Mil (TTM As of Mar. 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 Mar. 2016, Dow Chemical Co's Net Income From Continuing Operations was $275 Mil. Its DDA was $607 Mil. Its Change In Working Capital was $-277 Mil. Its cash flow from deferred tax was $-451 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-102 Mil. In all, Dow Chemical Co's Cash Flow from Operations for the three months ended in Mar. 2016 was $52 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.

Dow Chemical Co's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Dow Chemical Co's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

Dow Chemical Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 1406 (Jun. 2015 ) + 2511 (Sep. 2015 ) + 2341 (Dec. 2015 ) + 52 (Mar. 2016 ) = $6,310 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.

Dow Chemical Co's net income from continuing operations for the three months ended in Mar. 2016 was $275 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

Dow Chemical Co's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $607 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.

Dow Chemical Co's change in working capital for the three months ended in Mar. 2016 was $-277 Mil. It means Dow Chemical Co's working capital declined by $277 Mil from Dec. 2015 to Mar. 2016 .

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

Dow Chemical Co's cash flow from deferred tax for the three months ended in Mar. 2016 was $-451 Mil.

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

Dow Chemical Co's cash flow from discontinued operations for the three months ended in Mar. 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.

Dow Chemical Co's stock based compensation for the three months ended in Mar. 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).

Dow Chemical Co's cash flow from others for the three months ended in Mar. 2016 was $-102 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.

Dow Chemical Co Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 3,7242,8876545662,3212,7841,1004,8163,8397,783
CF_DDA 2,0742,1902,2362,8272,9622,8832,6982,6812,7472,521
ChangeInWorkingCapital -1,160-9311,270-87-177-1,120-2071,449881,927
CF_DeferredTax 104494-260-6523281-465113466305
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -588-156811-579-1,332-669949-1,236-638-5,020
Cash Flow from Operations 4,1544,4844,7112,0754,1023,8794,0757,8236,5027,516

Dow Chemical Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 1,0281,0669709648391,5191,1971,4363,631275
CF_DDA 689672677706692634642645600607
ChangeInWorkingCapital 985-1,01319417665-2132731,218649-277
CF_DeferredTax 0-933946474-51-18-62436-451
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -469-57-310-35887-631-688-726-2,975-102
Cash Flow from Operations 2,2335751,3951,7752,7571,2581,4062,5112,34152
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