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Morgan Stanley (NYSE:MS)
Cash Flow from Operations
$2,447 Mil (TTM As of Dec. 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 Dec. 2016, Morgan Stanley's Net Income From Continuing Operations was $1,680 Mil. Its DDA was $379 Mil. Its Change In Working Capital was $-9,273 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $342 Mil. And its Cash Flow from Others was $1,505 Mil. In all, Morgan Stanley's Cash Flow from Operations for the three months ended in Dec. 2016 was $-5,367 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.

Morgan Stanley's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Morgan Stanley's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

Morgan Stanley Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 4138 (Mar. 2016 ) + 12128 (Jun. 2016 ) + -8452 (Sep. 2016 ) + -5367 (Dec. 2016 ) = $2,447 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.

Morgan Stanley's net income from continuing operations for the three months ended in Dec. 2016 was $1,680 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

Morgan Stanley's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $379 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.

Morgan Stanley's change in working capital for the three months ended in Dec. 2016 was $-9,273 Mil. It means Morgan Stanley's working capital declined by $9,273 Mil from Sep. 2016 to Dec. 2016 .

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

Morgan Stanley's cash flow from deferred tax for the three months ended in Dec. 2016 was $0 Mil.

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

Morgan Stanley's cash flow from discontinued operations for the three months ended in Dec. 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.

Morgan Stanley's stock based compensation for the three months ended in Dec. 2016 was $342 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).

Morgan Stanley's cash flow from others for the three months ended in Dec. 2016 was $1,505 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.

Morgan Stanley Annual Data

Nov07Nov08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 2,5631,8071,4065,7024,6457163,6133,6676,2796,123
CF_DDA 4757941,2241,4191,4041,5811,5111,1611,4331,736
ChangeInWorkingCapital -26,53773,508-48,64032,3776,87721,98328,868-4,637-6,647-8,169
CF_DeferredTax -2,046-1,224-932-129413-639-117-2311,1891,579
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 001,2651,2601,3008911,1801,2601,1041,136
Cash Flow from Others 3,296-1,468-274-15743227-46-13431642
Cash Flow from Operations -22,24973,417-45,95140,61415,38224,75935,0091,0863,6742,447

Morgan Stanley Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 1,752-1,5862,4631,8311,0499361,1571,6461,6401,680
CF_DDA 136413321333369410415464478379
ChangeInWorkingCapital -234-5,619-16,2112,179-1,3438,7282,1479,612-10,655-9,273
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 304327295316225268217275302342
Cash Flow from Others -94-14077-571901,295202131-2171,505
Cash Flow from Operations 1,864-6,605-13,0554,60249011,6374,13812,128-8,452-5,367
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