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Alcoa Corp (NYSE:AA)
Cash Flow from Operations
$122 Mil (TTM As of Mar. 2017)

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. 2017, Alcoa Corp's Net Income From Continuing Operations was $308 Mil. Its DDA was $179 Mil. Its Change In Working Capital was $-369 Mil. Its cash flow from deferred tax was $23 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $7 Mil. And its Cash Flow from Others was $-74 Mil. In all, Alcoa Corp's Cash Flow from Operations for the three months ended in Mar. 2017 was $74 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.

Alcoa Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Alcoa Corp's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

Alcoa Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was -92 (Jun. 2016 ) + -99 (Sep. 2016 ) + 239 (Dec. 2016 ) + 74 (Mar. 2017 ) = $122 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.

Alcoa Corp's net income from continuing operations for the three months ended in Mar. 2017 was $308 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

Alcoa Corp's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $179 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.

Alcoa Corp's change in working capital for the three months ended in Mar. 2017 was $-369 Mil. It means Alcoa Corp's working capital declined by $369 Mil from Dec. 2016 to Mar. 2017 .

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

Alcoa Corp's cash flow from deferred tax for the three months ended in Mar. 2017 was $23 Mil.

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

Alcoa Corp's cash flow from discontinued operations for the three months ended in Mar. 2017 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.

Alcoa Corp's stock based compensation for the three months ended in Mar. 2017 was $7 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).

Alcoa Corp's cash flow from others for the three months ended in Mar. 2017 was $-74 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.

Alcoa Corp Annual Data

Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 000000-2,870-347-739-346
CF_DDA 0000001,026954780718
ChangeInWorkingCapital 000000-330-772-504-917
CF_DeferredTax 000000-10-5086-46
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00000033393528
Cash Flow from Others 0000002,6031,0181,217252
Cash Flow from Operations 000000452842875-311

Alcoa Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations 0226-30-45-890-208-1924-143308
CF_DDA 0204200190186177178181182179
ChangeInWorkingCapital 0-320-15963-88-443-318-18630-369
CF_DeferredTax 065-831103000023
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0111194810647
Cash Flow from Others 0763109373810757-124166-74
Cash Flow from Operations 026224931153-359-92-9923974
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