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Alcoa Inc (NYSE:AA)
Cash Flow from Operations
$1,136 Mil (TTM As of Sep. 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 Sep. 2014, Alcoa Inc's Net Income From Continuing Operations was $131 Mil. Its DDA was $346 Mil. Its Change In Working Capital was $-618 Mil. Its cash flow from deferred tax was $135 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $255 Mil. In all, Alcoa Inc's Cash Flow from Operations for the three months ended in Sep. 2014 was $249 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 Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

Alcoa Inc's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Alcoa Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 920 (Dec. 2013 ) + -551 (Mar. 2014 ) + 518 (Jun. 2014 ) + 249 (Sep. 2014 ) = $1,136 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.

Alcoa Inc's net income from continuing operations for the three months ended in Sep. 2014 was $131 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 Inc's depreciation, depletion and amortization for the three months ended in Sep. 2014 was $346 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 Inc's change in working capital for the three months ended in Sep. 2014 was $-618 Mil. It means Alcoa Inc's working capital declined by $618 Mil from Jun. 2014 to Sep. 2014 .

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

Alcoa Inc's cash flow from deferred tax for the three months ended in Sep. 2014 was $135 Mil.

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

Alcoa Inc's cash flow from discontinued operations for the three months ended in Sep. 2014 was $0 Mil.

6. 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 Inc's cash flow from others for the three months ended in Sep. 2014 was $255 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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.

Alcoa Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 1,3101,2332,2482,564147-924400808162-2,244
CF_DDA 1,1851,2581,2801,2691,2341,3111,4511,4811,4621,422
ChangeInWorkingCapital -512-1,091-1,53091-1,0361,112280-24978-433
CF_DeferredTax -95-16-68248-261-596-287-181-99178
Cash Flow from Disc. Op. 12654-836000000
Cash Flow from Others 185238720-1,0671,150462417334-1062,655
Cash Flow from Operations 2,1991,6762,5673,1111,2341,3652,2612,1931,4971,578

Alcoa Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations -19-175162170-14844-2,310-197129131
CF_DDA 364366363361363348350340350346
ChangeInWorkingCapital 100125498-62641-277429-1,213-9-618
CF_DeferredTax -3-9296-13-45-44280-18-115135
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 9539-186383031432,171537163255
Cash Flow from Operations 537263933-70514214920-551518249
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