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MasterCard Inc (NYSE:MA)
Cash Flow from Operations
$4,140 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, MasterCard Inc's Net Income From Continuing Operations was $959 Mil. Its DDA was $95 Mil. Its Change In Working Capital was $-175 Mil. Its cash flow from deferred tax was $-20 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $-40 Mil. And its Cash Flow from Others was $189 Mil. In all, MasterCard Inc's Cash Flow from Operations for the three months ended in Mar. 2016 was $1,008 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.

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

MasterCard Inc's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

MasterCard Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 821 (Jun. 2015 ) + 1272 (Sep. 2015 ) + 1039 (Dec. 2015 ) + 1008 (Mar. 2016 ) = $4,140 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.

MasterCard Inc's net income from continuing operations for the three months ended in Mar. 2016 was $959 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

MasterCard Inc's depreciation, depletion and amortization for the three months ended in Mar. 2016 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.

MasterCard Inc's change in working capital for the three months ended in Mar. 2016 was $-175 Mil. It means MasterCard Inc's working capital declined by $175 Mil from Dec. 2015 to Mar. 2016 .

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

MasterCard Inc's cash flow from deferred tax for the three months ended in Mar. 2016 was $-20 Mil.

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

MasterCard Inc'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.

MasterCard Inc's stock based compensation for the three months ended in Mar. 2016 was $-40 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).

MasterCard Inc's cash flow from others for the three months ended in Mar. 2016 was $189 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.

MasterCard Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 501,086-2541,4631,8471,9062,7583,1163,6173,808
CF_DDA 10098112141148194230258321366
ChangeInWorkingCapital 44-1111,075-674-439707-334750-1,168-820
CF_DeferredTax 32-5-484337248-175241-119-91-16
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00618863808963-1522
Cash Flow from Others 424-298-9623-170-28-3667743683
Cash Flow from Operations 6507704131,3781,6972,6842,9484,1353,4074,043

MasterCard Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 6238709311,0158011,020921977890959
CF_DDA 71738183848792949395
ChangeInWorkingCapital -68-400-48297-383-327-374-98-21-175
CF_DeferredTax -85-67-10-3-1137-3617-34-20
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 36-7428328-53302421-40
Cash Flow from Others 62216618119020614718825890189
Cash Flow from Operations 1,1995687291,3857259118211,2721,0391,008
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