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Arcos Dorados Holdings Inc (NYSE:ARCO)
Cash Flow from Operations
$148 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, Arcos Dorados Holdings Inc's Net Income From Continuing Operations was $0 Mil. Its DDA was $30 Mil. Its Change In Working Capital was $-19 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $20 Mil. In all, Arcos Dorados Holdings Inc's Cash Flow from Operations for the three months ended in Sep. 2014 was $31 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.

Arcos Dorados Holdings Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

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

Arcos Dorados Holdings Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 133.525 (Dec. 2013 ) + -39.992 (Mar. 2014 ) + 24.054 (Jun. 2014 ) + 30.735 (Sep. 2014 ) = $148 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.

Arcos Dorados Holdings Inc's net income from continuing operations for the three months ended in Sep. 2014 was $0 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

Arcos Dorados Holdings Inc's depreciation, depletion and amortization for the three months ended in Sep. 2014 was $30 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.

Arcos Dorados Holdings Inc's change in working capital for the three months ended in Sep. 2014 was $-19 Mil. It means Arcos Dorados Holdings Inc's working capital declined by $19 Mil from Jun. 2014 to Sep. 2014 .

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

Arcos Dorados Holdings Inc's cash flow from deferred tax for the three months ended in Sep. 2014 was $0 Mil.

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

Arcos Dorados Holdings Inc's cash flow from discontinued operations for the three months ended in Sep. 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.

Arcos Dorados Holdings Inc's stock based compensation for the three months ended in Sep. 2014 was $0 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).

Arcos Dorados Holdings Inc's cash flow from others for the three months ended in Sep. 2014 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.

Arcos Dorados Holdings Inc Annual Data

Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 000080106116114540
CF_DDA 0000566169921150
ChangeInWorkingCapital 000022598-16-240
CF_DeferredTax 0000-50-61-31490
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000170
Cash Flow from Others 0000391007224560
Cash Flow from Operations 00001482642622302170

Arcos Dorados Holdings Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 3344-792032-21-9900
CF_DDA 2327292929282829300
ChangeInWorkingCapital 2126-62-271848-529-190
CF_DeferredTax 01400090000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0100070000
Cash Flow from Others 15-12269139585200
Cash Flow from Operations 91100-141979134-4024310
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