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Masco Corp (NYSE:MAS)
Cash Flow from Operations
$647 Mil (TTM As of Mar. 2017)

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 Mar. 2017, Masco Corp's Net Income From Continuing Operations was $150 Mil. Its DDA was $0 Mil. Its Change In Working Capital was $-402 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $103 Mil. In all, Masco Corp's Cash Flow from Operations for the three months ended in Mar. 2017 was $-149 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.

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

Masco Corp's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

Masco Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 184 (Jun. 2016 ) + 268 (Sep. 2016 ) + 344 (Dec. 2016 ) + -149 (Mar. 2017 ) = $647 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.

Masco Corp's net income from continuing operations for the three months ended in Mar. 2017 was $150 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

Masco Corp's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $0 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.

Masco Corp's change in working capital for the three months ended in Mar. 2017 was $-402 Mil. It means Masco Corp's working capital declined by $402 Mil from Dec. 2016 to Mar. 2017 .

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

Masco Corp's cash flow from deferred tax for the three months ended in Mar. 2017 was $0 Mil.

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

Masco Corp's cash flow from discontinued operations for the three months ended in Mar. 2017 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.

Masco Corp's stock based compensation for the three months ended in Mar. 2017 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).

Masco Corp's cash flow from others for the three months ended in Mar. 2017 was $103 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.

Masco Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 386-327-102-1,002-533-79329903394534
CF_DDA 248238254279263214186167133134
ChangeInWorkingCapital 283161242115-23638-93-5-88
CF_DeferredTax -4120-83168-1125042-406212130
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 94746962616154474129
Cash Flow from Others 300631325843562-1-4-16-76-13
Cash Flow from Operations 1,270797705465239281645602699726

Masco Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations 957011912186119163146106150
CF_DDA 0000000000
ChangeInWorkingCapital 144-2968057154-289465699-402
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 57749210537100-2566139103
Cash Flow from Operations 296-152291283277-70184268344-149
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