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Alcoa Inc (NYSE:AA)
Cash Flow from Operations
$1,674 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, Alcoa Inc's Net Income From Continuing Operations was $114 Mil. Its DDA was $336 Mil. Its Change In Working Capital was $631 Mil. Its cash flow from deferred tax was $-37 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $16 Mil. And its Cash Flow from Others was $398 Mil. In all, Alcoa Inc's Cash Flow from Operations for the three months ended in Dec. 2014 was $1,458 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. 2014 is calculated as:

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

Alcoa Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was -551 (Mar. 2014 ) + 518 (Jun. 2014 ) + 249 (Sep. 2014 ) + 1458 (Dec. 2014 ) = $1,674 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 Dec. 2014 was $114 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 Dec. 2014 was $336 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 Dec. 2014 was $631 Mil. It means Alcoa Inc's working capital increased by $631 Mil from Sep. 2014 to Dec. 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 Dec. 2014 was $-37 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 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.

Alcoa Inc's stock based compensation for the three months ended in Dec. 2014 was $16 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 Inc's cash flow from others for the three months ended in Dec. 2014 was $398 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.

Alcoa Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 1,2332,2482,564147-924400808162-2,244177
CF_DDA 1,2581,2801,2691,2341,3111,4511,4811,4621,4221,372
ChangeInWorkingCapital -1,091-1,53091-1,0361,112280-249-7-433-1,209
CF_DeferredTax -16-68248-261-596-287-181-99178-35
Cash Flow from Disc. Op. 54-8360000000
Stock Based Compensation 00094878483677187
Cash Flow from Others 238720-1,0671,056375333251-882,5841,282
Cash Flow from Operations 1,6762,5673,1111,2341,3652,2612,1931,4971,5781,674

Alcoa Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations 257170-14844-2,310-197129131114255
CF_DDA 363361363348350340350346336321
ChangeInWorkingCapital 413-62641-277429-1,213-9-618631-1,041
CF_DeferredTax 96-13-45-44280-18-115135-3723
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 13232313122524221626
Cash Flow from Others -209152801302,159512139233398241
Cash Flow from Operations 933-70514214920-5515182491,458-175
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