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GuruFocus has detected 3 Warning Signs with Marriott International Inc $MAR.
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Marriott International Inc (NAS:MAR)
Cash Flow from Operations
$1,482 Mil (TTM As of Sep. 2016)

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 Sep. 2016, Marriott International Inc's Net Income From Continuing Operations was $70 Mil. Its DDA was $36 Mil. Its Change In Working Capital was $-2 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $58 Mil. And its Cash Flow from Others was $172 Mil. In all, Marriott International Inc's Cash Flow from Operations for the three months ended in Sep. 2016 was $334 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.

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

Marriott International Inc's Cash Flow from Operations for the quarter that ended in Sep. 2016 is

Marriott International Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 350 (Dec. 2015 ) + 333 (Mar. 2016 ) + 465 (Jun. 2016 ) + 334 (Sep. 2016 ) = $1,482 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Marriott International Inc's net income from continuing operations for the three months ended in Sep. 2016 was $70 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

Marriott International Inc's depreciation, depletion and amortization for the three months ended in Sep. 2016 was $36 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.

Marriott International Inc's change in working capital for the three months ended in Sep. 2016 was $-2 Mil. It means Marriott International Inc's working capital declined by $2 Mil from Jun. 2016 to Sep. 2016 .

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

Marriott International Inc's cash flow from deferred tax for the three months ended in Sep. 2016 was $0 Mil.

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

Marriott International Inc's cash flow from discontinued operations for the three months ended in Sep. 2016 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.

Marriott International Inc's stock based compensation for the three months ended in Sep. 2016 was $58 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).

Marriott International Inc's cash flow from others for the three months ended in Sep. 2016 was $172 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 local exchange's currency.

Marriott International Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 696362-353458198571626753859780
CF_DDA 197190185178144102127148139168
ChangeInWorkingCapital 7117210612062-13750-120-1260
CF_DeferredTax 000-271132240000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00000941161091130
Cash Flow from Others -186-839304225721352213344450
Cash Flow from Operations 7786418681,1511,0899891,1401,2241,4300

Marriott International Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 19219720724021020221924770244
CF_DDA 33324432313231303671
ChangeInWorkingCapital -20-83-13163-9-49-10661-20
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 2728243129292831580
Cash Flow from Others 4910011812467136161961720
Cash Flow from Operations 2812742624903283503334653340
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