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DR Horton Inc (NYSE:DHI)
Cash Flow from Operations
$-658 Mil (TTM As of Mar. 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 Mar. 2014, DR Horton Inc's Net Income From Continuing Operations was $131 Mil. Its DDA was $9 Mil. Its Change In Working Capital was $-427 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 $19 Mil. In all, DR Horton Inc's Cash Flow from Operations for the three months ended in Mar. 2014 was $-259 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.

DR Horton Inc's Cash Flow from Operations for the fiscal year that ended in Sep. 2013 is calculated as:

DR Horton Inc's Cash Flow from Operations for the quarter that ended in Mar. 2014 is

DR Horton Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2014 was -296 (Jun. 2013 ) + -94.8 (Sep. 2013 ) + -7.5 (Dec. 2013 ) + -259.4 (Mar. 2014 ) = $-658 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.

DR Horton Inc's net income from continuing operations for the three months ended in Mar. 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

DR Horton Inc's depreciation, depletion and amortization for the three months ended in Mar. 2014 was $9 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.

DR Horton Inc's change in working capital for the three months ended in Mar. 2014 was $-427 Mil. It means DR Horton Inc's working capital declined by $427 Mil from Dec. 2013 to Mar. 2014 .

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

DR Horton Inc's cash flow from deferred tax for the three months ended in Mar. 2014 was $9 Mil.

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

DR Horton Inc's cash flow from discontinued operations for the three months ended in Mar. 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).

DR Horton Inc's cash flow from others for the three months ended in Mar. 2014 was $19 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.

DR Horton Inc Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
NetIncomeFromContinuingOperations 9751,4711,233-713-2,634-550245720463
CF_DDA 56576264532618201923
ChangeInWorkingCapital -1,453-2,148-2,7736681,2191,023335-184-619-1,930
CF_DeferredTax 000-48965021400-710131
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 002871,8252,5874281111081,02183
Cash Flow from Operations -423-621-1,1911,3561,8771,14170915-289-1,231

DR Horton Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
NetIncomeFromContinuingOperations 2841788066111146140123131
CF_DDA 5559556789
ChangeInWorkingCapital -51-139-187-1,435-778-319-505-329-164-427
CF_DeferredTax 00-717-1,015354415189
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 1616171,336151616361719
Cash Flow from Operations -2-78-95-1,106-657-184-296-95-8-259
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