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Generac Holdings Inc (NYSE:GNRC)
Cash Flow from Operations
$189 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, Generac Holdings Inc's Net Income From Continuing Operations was $9 Mil. Its DDA was $11 Mil. Its Change In Working Capital was $49 Mil. Its cash flow from deferred tax was $-0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $1 Mil. And its Cash Flow from Others was $42 Mil. In all, Generac Holdings Inc's Cash Flow from Operations for the three months ended in Dec. 2015 was $112 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.

Generac Holdings Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

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

Generac Holdings Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 25.257 (Mar. 2015 ) + 16.322 (Jun. 2015 ) + 35.28 (Sep. 2015 ) + 111.76 (Dec. 2015 ) = $189 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.

Generac Holdings Inc's net income from continuing operations for the three months ended in Dec. 2015 was $9 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

Generac Holdings Inc's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $11 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.

Generac Holdings Inc's change in working capital for the three months ended in Dec. 2015 was $49 Mil. It means Generac Holdings Inc's working capital increased by $49 Mil from Sep. 2015 to Dec. 2015 .

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

Generac Holdings Inc's cash flow from deferred tax for the three months ended in Dec. 2015 was $-0 Mil.

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

Generac Holdings 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.

Generac Holdings Inc's stock based compensation for the three months ended in Dec. 2015 was $1 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).

Generac Holdings Inc's cash flow from others for the three months ended in Dec. 2015 was $42 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.

Generac Holdings Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 0-10-55643573259317517578
CF_DDA 0545560595654373540
ChangeInWorkingCapital 08-11-41-157-6-594-18
CF_DeferredTax 00000-23862833827
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000691112138
Cash Flow from Others 0-14523137122112-1154
Cash Flow from Operations 0391075114170236260253189

Generac Holdings Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 4749355436492015349
CF_DDA 10998999101111
ChangeInWorkingCapital -28-24-13-344-12-22-3349
CF_DeferredTax 22251316723618-0
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 3333333321
Cash Flow from Others 1111-194335342
Cash Flow from Operations 81105364957110251635112
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