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Encana Corp (NYSE:ECA)
Cash Flow from Operations
$2,206 Mil (TTM As of Mar. 2015)

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. 2015, Encana Corp's Net Income From Continuing Operations was $-1,707 Mil. Its DDA was $466 Mil. Its Change In Working Capital was $-13 Mil. Its cash flow from deferred tax was $-963 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $2,699 Mil. In all, Encana Corp's Cash Flow from Operations for the three months ended in Mar. 2015 was $482 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.

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

Encana Corp's Cash Flow from Operations for the quarter that ended in Mar. 2015 is

Encana Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 767 (Jun. 2014 ) + 696 (Sep. 2014 ) + 261 (Dec. 2014 ) + 482 (Mar. 2015 ) = $2,206 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.

Encana Corp's net income from continuing operations for the three months ended in Mar. 2015 was $-1,707 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

Encana Corp's depreciation, depletion and amortization for the three months ended in Mar. 2015 was $466 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.

Encana Corp's change in working capital for the three months ended in Mar. 2015 was $-13 Mil. It means Encana Corp's working capital declined by $13 Mil from Dec. 2014 to Mar. 2015 .

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

Encana Corp's cash flow from deferred tax for the three months ended in Mar. 2015 was $-963 Mil.

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

Encana Corp's cash flow from discontinued operations for the three months ended in Mar. 2015 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.

Encana Corp's stock based compensation for the three months ended in Mar. 2015 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).

Encana Corp's cash flow from others for the three months ended in Mar. 2015 was $2,699 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.

Encana Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 2,8295,0513,8846,4991,8302,343128-2,7942363,426
CF_DDA 2,7693,1123,8164,0353,7042,0083,4231,9561,5651,745
ChangeInWorkingCapital -281138-8-1,6101,069-2,110-132-401-259-52
CF_DeferredTax 56950-6171,723-1,7991,18948-1,837-57960
Cash Flow from Disc. Op. 252-2,55100000000
Stock Based Compensation 0000000000
Cash Flow from Others 1,8051,2731,354-1,6613,069-1,1015766,183804-3,412
Cash Flow from Operations 7,4307,9738,4298,9867,8732,3294,0433,1072,2892,667

Encana Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations -80-431730188-2511162812,831198-1,707
CF_DDA 445395394388388418400476451466
ChangeInWorkingCapital -79-237-103285-204-151111144-156-13
CF_DeferredTax -231110-184-102712308505135-963
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 662501-28384502548-333-3,260-3672,699
Cash Flow from Operations 717338554935462943767696261482
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