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T. Rowe Price Group Inc (NAS:TROW)
Cash Flow from Operations
$381 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, T. Rowe Price Group Inc's Net Income From Continuing Operations was $380 Mil. Its DDA was $34 Mil. Its Change In Working Capital was $222 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $42 Mil. And its Cash Flow from Others was $-378 Mil. In all, T. Rowe Price Group Inc's Cash Flow from Operations for the three months ended in Sep. 2016 was $300 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.

T. Rowe Price Group Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

T. Rowe Price Group Inc's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

T. Rowe Price Group Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 112.8 (Dec. 2015 ) + 63.6 (Mar. 2016 ) + -95.1 (Jun. 2016 ) + 299.7 (Sep. 2016 ) = $381 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.

T. Rowe Price Group Inc's net income from continuing operations for the three months ended in Sep. 2016 was $380 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

T. Rowe Price Group Inc's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $34 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.

T. Rowe Price Group Inc's change in working capital for the three months ended in Sep. 2016 was $222 Mil. It means T. Rowe Price Group Inc's working capital increased by $222 Mil from Jun. 2016 to Sep. 2016 .

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

T. Rowe Price Group Inc's cash flow from deferred tax for the three months ended in Sep. 2016 was $0 Mil.

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

T. Rowe Price Group Inc'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.

T. Rowe Price Group Inc's stock based compensation for the three months ended in Sep. 2016 was $42 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).

T. Rowe Price Group Inc's cash flow from others for the three months ended in Sep. 2016 was $-378 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.

T. Rowe Price Group Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 5306714914346727738841,0481,2301,223
CF_DDA 4754626663728191112126
ChangeInWorkingCapital -27-4712-89-848-1197-12763
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 08086899099104115133149
Cash Flow from Others 4409136-8-4-47-26-57-55
Cash Flow from Operations 5937587425367339489031,2331,2911,506

T. Rowe Price Group Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
NetIncomeFromContinuingOperations 306304316310333277303304203380
CF_DDA 28282829323332323434
ChangeInWorkingCapital -111123-304196-29160-264-251356222
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 33343831364142373942
Cash Flow from Others -171-3-22-29-4-0-59-727-378
Cash Flow from Operations 2394917554434350711364-95300
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