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Arcos Dorados Holdings Inc (NYSE:ARCO)
Cash Flow from Operations
$217 Mil (TTM As of Dec. 2013)

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. 2013, Arcos Dorados Holdings Inc's Net Income From Continuing Operations was $32 Mil. Its DDA was $28 Mil. Its Change In Working Capital was $48 Mil. Its cash flow from deferred tax was $9 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $16 Mil. In all, Arcos Dorados Holdings Inc's Cash Flow from Operations for the three months ended in Dec. 2013 was $134 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 Dec. 2013 is

Arcos Dorados Holdings Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was -14.172 (Mar. 2013 ) + 18.593 (Jun. 2013 ) + 79.068 (Sep. 2013 ) + 133.525 (Dec. 2013 ) = $217 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 Dec. 2013 was $32 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 Dec. 2013 was $28 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 Dec. 2013 was $48 Mil. It means Arcos Dorados Holdings Inc's working capital increased by $48 Mil from Sep. 2013 to Dec. 2013 .

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 Dec. 2013 was $9 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 Dec. 2013 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).

Arcos Dorados Holdings Inc's cash flow from others for the three months ended in Dec. 2013 was $16 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.

Arcos Dorados Holdings Inc Annual Data

Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 000008010611611454
CF_DDA 0000056616992115
ChangeInWorkingCapital 0000022598-16-24
CF_DeferredTax 00000-50-61-3149
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 0000039100722563
Cash Flow from Operations 00000148264262230217

Arcos Dorados Holdings Inc Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
NetIncomeFromContinuingOperations 344625123344-792032
CF_DDA 18202023232729292928
ChangeInWorkingCapital 1540-43-192126-62-271848
CF_DeferredTax 0-3000140009
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 24751615-112691316
Cash Flow from Operations 9111083191100-141979134
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