Switch to:
Arch Capital Group Ltd (NAS:ACGL)
Cash Flow from Operations
$969 Mil (TTM As of Jun. 2015)

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 Jun. 2015, Arch Capital Group Ltd's Net Income From Continuing Operations was $126 Mil. Its DDA was $0 Mil. Its Change In Working Capital was $131 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $23 Mil. And its Cash Flow from Others was $20 Mil. In all, Arch Capital Group Ltd's Cash Flow from Operations for the three months ended in Jun. 2015 was $300 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.

Arch Capital Group Ltd's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Arch Capital Group Ltd's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Arch Capital Group Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 346.596 (Sep. 2014 ) + 237.471 (Dec. 2014 ) + 85.461 (Mar. 2015 ) + 299.738 (Jun. 2015 ) = $969 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.

Arch Capital Group Ltd's net income from continuing operations for the three months ended in Jun. 2015 was $126 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

Arch Capital Group Ltd's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $0 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.

Arch Capital Group Ltd's change in working capital for the three months ended in Jun. 2015 was $131 Mil. It means Arch Capital Group Ltd's working capital increased by $131 Mil from Mar. 2015 to Jun. 2015 .

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

Arch Capital Group Ltd's cash flow from deferred tax for the three months ended in Jun. 2015 was $0 Mil.

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

Arch Capital Group Ltd's cash flow from discontinued operations for the three months ended in Jun. 2015 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.

Arch Capital Group Ltd's stock based compensation for the three months ended in Jun. 2015 was $23 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).

Arch Capital Group Ltd's cash flow from others for the three months ended in Jun. 2015 was $20 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.

Arch Capital Group Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 256713858291877843436593710821
CF_DDA 0000000000
ChangeInWorkingCapital 1,132858591461329236433518113245
CF_DeferredTax -9800000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 002530273131424955
Cash Flow from Others 7330-37357-241-307-34-232-21-84
Cash Flow from Operations 1,4521,6091,4361,1399938028669228511,037

Arch Capital Group Ltd Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 256177115161179212223207309126
CF_DDA 0000000000
ChangeInWorkingCapital -28-1511047158212722-152131
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 12209914219101323
Cash Flow from Others -34166-10-60-13-1-8420
Cash Flow from Operations 20618323922419825534723785300
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK