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Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT)
Cash Flow from Operations
$994 Mil (TTM As of Dec. 2014)

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. 2014, Starwood Hotels & Resorts Worldwide Inc's Net Income From Continuing Operations was $234 Mil. Its DDA was $73 Mil. Its Change In Working Capital was $169 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $14 Mil. And its Cash Flow from Others was $-173 Mil. In all, Starwood Hotels & Resorts Worldwide Inc's Cash Flow from Operations for the three months ended in Dec. 2014 was $317 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.

Starwood Hotels & Resorts Worldwide Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Starwood Hotels & Resorts Worldwide Inc's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Starwood Hotels & Resorts Worldwide Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 149 (Mar. 2014 ) + 277 (Jun. 2014 ) + 251 (Sep. 2014 ) + 317 (Dec. 2014 ) = $994 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.

Starwood Hotels & Resorts Worldwide Inc's net income from continuing operations for the three months ended in Dec. 2014 was $234 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

Starwood Hotels & Resorts Worldwide Inc's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $73 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.

Starwood Hotels & Resorts Worldwide Inc's change in working capital for the three months ended in Dec. 2014 was $169 Mil. It means Starwood Hotels & Resorts Worldwide Inc's working capital increased by $169 Mil from Sep. 2014 to Dec. 2014 .

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

Starwood Hotels & Resorts Worldwide Inc's cash flow from deferred tax for the three months ended in Dec. 2014 was $0 Mil.

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

Starwood Hotels & Resorts Worldwide Inc's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

Starwood Hotels & Resorts Worldwide Inc's stock based compensation for the three months ended in Dec. 2014 was $14 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).

Starwood Hotels & Resorts Worldwide Inc's cash flow from others for the three months ended in Dec. 2014 was $-173 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.

Starwood Hotels & Resorts Worldwide Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 4221,04354232971307500562635633
CF_DDA 407311229323317285265251267283
ChangeInWorkingCapital 17-13146-2299491-218380224171
CF_DeferredTax 000001663-2000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000126537275635452
Cash Flow from Others -82-723679736-7-44-52-29-145
Cash Flow from Operations 7645008846465717646411,1841,151994

Starwood Hotels & Resorts Worldwide Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 162142212138157128137153109234
CF_DDA 61656565657268707273
ChangeInWorkingCapital 131787794989-52522169
CF_DeferredTax 3-5516000-37000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 15141314131413111414
Cash Flow from Others -1739-1012439-720-954-173
Cash Flow from Operations 355283212320323296149277251317
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