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Marathon Oil Corp (NYSE:MRO)
Cash Flow from Operations
$970 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, Marathon Oil Corp's Net Income From Continuing Operations was $-192 Mil. Its DDA was $594 Mil. Its Change In Working Capital was $78 Mil. Its cash flow from deferred tax was $-112 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 Mil. In all, Marathon Oil Corp's Cash Flow from Operations for the three months ended in Sep. 2016 was $366 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.

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

Marathon Oil Corp's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Marathon Oil Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 352 (Dec. 2015 ) + 74 (Mar. 2016 ) + 178 (Jun. 2016 ) + 366 (Sep. 2016 ) = $970 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.

Marathon Oil Corp's net income from continuing operations for the three months ended in Sep. 2016 was $-192 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

Marathon Oil Corp's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $594 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.

Marathon Oil Corp's change in working capital for the three months ended in Sep. 2016 was $78 Mil. It means Marathon Oil Corp's working capital increased by $78 Mil from Jun. 2016 to Sep. 2016 .

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

Marathon Oil Corp's cash flow from deferred tax for the three months ended in Sep. 2016 was $-112 Mil.

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

Marathon Oil Corp'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.

Marathon Oil Corp'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).

Marathon Oil Corp's cash flow from others for the three months ended in Sep. 2016 was $-2 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.

Marathon Oil Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 5,2343,9563,5281,1841,8821,718856931969-2,204
CF_DDA 1,5181,6132,1292,6042,0562,2632,0082,5002,8612,957
ChangeInWorkingCapital -414884-166411538531-607-1075-112
CF_DeferredTax 268-347941,072-489-193-34-3488-806
Cash Flow from Disc. Op. -207-800000000
Stock Based Compensation 0000000000
Cash Flow from Others -9114231,167-31,8832,2051,7941,8831,4941,730
Cash Flow from Operations 5,4886,5216,7525,2685,8706,5244,0175,2705,4871,565

Marathon Oil Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 360304-93-276-386-749-793-407-170-192
CF_DDA 680737801821751717668609561594
ChangeInWorkingCapital -278-62492-103-112297419-11278
CF_DeferredTax 84164-249-179-6-405-216-320-72-112
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 24263120446161904619173-29-2
Cash Flow from Operations 1,0881,7741,15530940849635274178366
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