Switch to:
GuruFocus has detected 4 Warning Signs with Murphy Oil Corp $MUR.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Murphy Oil Corp (NYSE:MUR)
Cash Flow from Operations
$601 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, Murphy Oil Corp's Net Income From Continuing Operations was $-63 Mil. Its DDA was $257 Mil. Its Change In Working Capital was $114 Mil. Its cash flow from deferred tax was $-43 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $55 Mil. In all, Murphy Oil Corp's Cash Flow from Operations for the three months ended in Dec. 2016 was $320 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.

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

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

Murphy Oil Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 43.312 (Mar. 2016 ) + 70.066 (Jun. 2016 ) + 166.972 (Sep. 2016 ) + 320.445 (Dec. 2016 ) = $601 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.

Murphy Oil Corp's net income from continuing operations for the three months ended in Dec. 2016 was $-63 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

Murphy Oil Corp's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $257 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.

Murphy Oil Corp's change in working capital for the three months ended in Dec. 2016 was $114 Mil. It means Murphy Oil Corp's working capital increased by $114 Mil from Sep. 2016 to Dec. 2016 .

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

Murphy Oil Corp's cash flow from deferred tax for the three months ended in Dec. 2016 was $-43 Mil.

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

Murphy Oil Corp'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.

Murphy Oil Corp's stock based compensation for the three months ended in Dec. 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).

Murphy Oil Corp's cash flow from others for the three months ended in Dec. 2016 was $55 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.

Murphy Oil Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 7671,7457417495398068881,025-2,256-274
CF_DDA 5458079191,0929651,2531,5531,9061,6201,054
ChangeInWorkingCapital 21194-195640-760-168266-435-39
CF_DeferredTax 3723397147134343158-171-978-388
Cash Flow from Disc. Op. 000000243160-103
Stock Based Compensation 0000000000
Cash Flow from Others 1811623035011,2686771021322,772244
Cash Flow from Operations 1,7403,0401,8653,1292,1452,9113,2113,0491,183601

Murphy Oil Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 2714424-89-1,587-583-1993-15-63
CF_DDA 499552481403434302286255256257
ChangeInWorkingCapital -42-11259-152-10-62-10418-66114
CF_DeferredTax 46-235-184-10-781-3-86-231-29-43
Cash Flow from Disc. Op. 12152-09171-1900500
Stock Based Compensation 0000000000
Cash Flow from Others 92-186-25192,155623147202055
Cash Flow from Operations 879714534181381874370167320
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK