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GuruFocus has detected 3 Warning Signs with JPMorgan Chase & Co $JPM.
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JPMorgan Chase & Co (NYSE:JPM)
Cash Flow from Operations
$-2,548 Mil (TTM As of Sep. 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 Sep. 2016, JPMorgan Chase & Co's Net Income From Continuing Operations was $6,286 Mil. Its DDA was $1,407 Mil. Its Change In Working Capital was $-10,028 Mil. Its cash flow from deferred tax was $274 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $6,253 Mil. In all, JPMorgan Chase & Co's Cash Flow from Operations for the three months ended in Sep. 2016 was $4,192 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.

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

JPMorgan Chase & Co's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

JPMorgan Chase & Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 16167 (Dec. 2015 ) + -21383 (Mar. 2016 ) + -1524 (Jun. 2016 ) + 4192 (Sep. 2016 ) = $-2,548 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

JPMorgan Chase & Co's net income from continuing operations for the three months ended in Sep. 2016 was $6,286 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

JPMorgan Chase & Co's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $1,407 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.

JPMorgan Chase & Co's change in working capital for the three months ended in Sep. 2016 was $-10,028 Mil. It means JPMorgan Chase & Co's working capital declined by $10,028 Mil from Jun. 2016 to Sep. 2016 .

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

JPMorgan Chase & Co's cash flow from deferred tax for the three months ended in Sep. 2016 was $274 Mil.

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

JPMorgan Chase & Co's cash flow from discontinued operations for the three months ended in Sep. 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.

JPMorgan Chase & Co's stock based compensation for the three months ended in Sep. 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).

JPMorgan Chase & Co's cash flow from others for the three months ended in Sep. 2016 was $6,253 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 local exchange's currency.

JPMorgan Chase & Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 15,3653,69911,65217,37018,97621,28417,88621,74524,44224,733
CF_DDA 3,8214,4064,3584,9655,1055,1475,3064,7594,9400
ChangeInWorkingCapital -149,0714,28658,421-51,34853,814-1,86579,336-3,72141,0070
CF_DeferredTax 1,307-2,637-3,622-9681,6931,1308,1394,3621,3330
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 02,6373,3553,2512,6752,5452,2192,19000
Cash Flow from Others 18,01810,70748,63322,97813,669-3,162-4,9337,2581,7440
Cash Flow from Operations -110,56023,098122,797-3,75295,93225,079107,95336,59373,4660

JPMorgan Chase & Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 5,5654,9315,9146,2906,8045,4345,5206,2006,2866,727
CF_DDA 1,1471,1861,1811,2381,2481,2731,2891,3361,4070
ChangeInWorkingCapital -7,26020,2238,14812,64913,6466,564-31,341-8,384-10,0280
CF_DeferredTax -6462,4683357-6201,863906-3292740
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 53950900000000
Cash Flow from Others -1,794-571-397-2,9384,0461,0332,243-3476,2530
Cash Flow from Operations -2,44928,74614,87917,29625,12416,167-21,383-1,5244,1920
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