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Coventry Health Care, Inc. (NYSE:CVH)
Cash Flow from Operations
$272 Mil (TTM As of Mar. 2013)

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. 2013, Coventry Health Care, Inc.'s Net Income From Continuing Operations was $135 Mil. Its DDA was $38 Mil. Its Change In Working Capital was $50 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $-1 Mil. In all, Coventry Health Care, Inc.'s Cash Flow from Operations for the three months ended in Mar. 2013 was $222 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.

Coventry Health Care, Inc.'s Cash Flow from Operations for the fiscal year that ended in Dec. 2012 is calculated as:

Coventry Health Care, Inc.'s Cash Flow from Operations for the quarter that ended in Mar. 2013 is

Coventry Health Care, Inc. Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2013 was 61.024 (Jun. 2012 ) + -260.289 (Sep. 2012 ) + 249.394 (Dec. 2012 ) + 222.225 (Mar. 2013 ) = $272 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.

Coventry Health Care, Inc.'s net income from continuing operations for the three months ended in Mar. 2013 was $135 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

Coventry Health Care, Inc.'s depreciation, depletion and amortization for the three months ended in Mar. 2013 was $38 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.

Coventry Health Care, Inc.'s change in working capital for the three months ended in Mar. 2013 was $50 Mil. It means Coventry Health Care, Inc.'s working capital increased by $50 Mil from Dec. 2012 to Mar. 2013 .

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

Coventry Health Care, Inc.'s cash flow from deferred tax for the three months ended in Mar. 2013 was $0 Mil.

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

Coventry Health Care, Inc.'s cash flow from discontinued operations for the three months ended in Mar. 2013 was $0 Mil.

6. 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).

Coventry Health Care, Inc.'s cash flow from others for the three months ended in Mar. 2013 was $-1 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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.

Coventry Health Care, Inc. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
NetIncomeFromContinuingOperations 250337502560626382242439543487
CF_DDA 181886113143150152141137153
ChangeInWorkingCapital 2671174350027446-513-268-117
CF_DeferredTax 9-215-15-25-34-88-1313628
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 19312858-164102129337-47-81
Cash Flow from Operations 3234548041,066580627882272401471

Coventry Health Care, Inc. Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
NetIncomeFromContinuingOperations 1501102241238617192105487135
CF_DDA 5363333353644363738
ChangeInWorkingCapital 59-57-78289-422254-71-3939350
CF_DeferredTax -13100036000280
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -32-61-2240-4-41-4-9-395-1
Cash Flow from Operations 5129158484-27042161-260249222
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