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DR Horton Inc (NYSE:DHI)
Cash Flow from Operations
$828 Mil (TTM As of Dec. 2015)

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 Dec. 2015, DR Horton Inc's Net Income From Continuing Operations was $158 Mil. Its DDA was $14 Mil. Its Change In Working Capital was $-198 Mil. Its cash flow from deferred tax was $13 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $10 Mil. And its Cash Flow from Others was $1 Mil. In all, DR Horton Inc's Cash Flow from Operations for the three months ended in Dec. 2015 was $-2 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.

DR Horton Inc's Cash Flow from Operations for the fiscal year that ended in Sep. 2015 is calculated as:

DR Horton Inc's Cash Flow from Operations for the quarter that ended in Dec. 2015 is

DR Horton Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was -39.8 (Mar. 2015 ) + 357.4 (Jun. 2015 ) + 511.8 (Sep. 2015 ) + -1.5 (Dec. 2015 ) = $828 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.

DR Horton Inc's net income from continuing operations for the three months ended in Dec. 2015 was $158 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

DR Horton Inc's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $14 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.

DR Horton Inc's change in working capital for the three months ended in Dec. 2015 was $-198 Mil. It means DR Horton Inc's working capital declined by $198 Mil from Sep. 2015 to Dec. 2015 .

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

DR Horton Inc's cash flow from deferred tax for the three months ended in Dec. 2015 was $13 Mil.

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

DR Horton Inc's cash flow from discontinued operations for the three months ended in Dec. 2015 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.

DR Horton Inc's stock based compensation for the three months ended in Dec. 2015 was $10 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).

DR Horton Inc's cash flow from others for the three months ended in Dec. 2015 was $1 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.

DR Horton Inc Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
NetIncomeFromContinuingOperations 1,233-713-2,634-54524572956463534751
CF_DDA 62645326172019233854
ChangeInWorkingCapital -2,7736681,2191,023336-184-628-1,930-1,389-213
CF_DeferredTax 0-48965021400-710131173
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0121414131418192642
Cash Flow from Others 2871,8122,5744109893466411263
Cash Flow from Operations -1,1911,3561,8771,14170915-298-1,231-661700

DR Horton Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 140123131113166143148221239158
CF_DDA 78910121213141414
ChangeInWorkingCapital -329-164-426-487-312-314-22593233-198
CF_DeferredTax 5189-13141253-1813
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 65579111191110
Cash Flow from Others 30121462246816331
Cash Flow from Operations -95-8-258-308-88-129-40357512-2
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