Cash Flow Other

Shown for Year One, the amount of funds generated internally (from operations) from sources other than depreciation , deferred taxes , and net earnings. When a company does not break out depreciation and amortization separately, amortization is included under depreciation, rather than other cash flow. Other cash flow is expressed in the millions of dollars ($M).

Benefit

Occasionally a company will incur a big noncash item—usually a nonrecurring, or extraordinary gain or loss—which demolishes earnings. Since it’s not cash, though, it has no effect on cash flow, which is why it is added back to net income when we calculate cash flow from operations. Other miscellaneous noncash items are also included in the other category.

Origin

This information is found in the cash flow statement of the company’s annual report.

For the Pros

Wonder why a company’s earnings look so abnormal in a given year? Check the other cash flow item. If it’s significant, chances are the company had a big nonrecurring charge.