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NorthWestern Corp (NYSE:NWE)
Cash Flow from Operations
$290 Mil (TTM As of Jun. 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 Jun. 2016, NorthWestern Corp's Net Income From Continuing Operations was $36 Mil. Its DDA was $40 Mil. Its Change In Working Capital was $-84 Mil. Its cash flow from deferred tax was $1 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $1 Mil. And its Cash Flow from Others was $5 Mil. In all, NorthWestern Corp's Cash Flow from Operations for the three months ended in Jun. 2016 was $-1 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.

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

NorthWestern Corp's Cash Flow from Operations for the quarter that ended in Jun. 2016 is

NorthWestern Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 114.139 (Sep. 2015 ) + 35.341 (Dec. 2015 ) + 142.136 (Mar. 2016 ) + -1.142 (Jun. 2016 ) = $290 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.

NorthWestern Corp's net income from continuing operations for the three months ended in Jun. 2016 was $36 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

NorthWestern Corp's depreciation, depletion and amortization for the three months ended in Jun. 2016 was $40 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.

NorthWestern Corp's change in working capital for the three months ended in Jun. 2016 was $-84 Mil. It means NorthWestern Corp's working capital declined by $84 Mil from Mar. 2016 to Jun. 2016 .

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

NorthWestern Corp's cash flow from deferred tax for the three months ended in Jun. 2016 was $1 Mil.

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

NorthWestern Corp's cash flow from discontinued operations for the three months ended in Jun. 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.

NorthWestern Corp's stock based compensation for the three months ended in Jun. 2016 was $1 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).

NorthWestern Corp's cash flow from others for the three months ended in Jun. 2016 was $5 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.

NorthWestern Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 3853687377939894121151
CF_DDA 8191858992101106113124145
ChangeInWorkingCapital 1336-2-94-2-2621-661511
CF_DeferredTax 2735434749645255-1034
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000235
Cash Flow from Others 11-135132-26-4-3-6
Cash Flow from Operations 170202198117219234251194250340

NorthWestern Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 4683037513124453836
CF_DDA 30303033363636374040
ChangeInWorkingCapital 8-32231631-2359-5557-84
CF_DeferredTax 276-3-399117751
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1111111221
Cash Flow from Others 00-0-3-28-12-105
Cash Flow from Operations 1121280451276411435142-1
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