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Education Management Corporation (NAS:EDMC)
Cash Flow from Operations
$138 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, Education Management Corporation's Net Income From Continuing Operations was $1 Mil. Its DDA was $39 Mil. Its Change In Working Capital was $-174 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $47 Mil. In all, Education Management Corporation's Cash Flow from Operations for the three months ended in Dec. 2013 was $-88 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.

Education Management Corporation's Cash Flow from Operations for the fiscal year that ended in Jun. 2013 is calculated as:

Education Management Corporation's Cash Flow from Operations for the quarter that ended in Dec. 2013 is

Education Management Corporation Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 193.025 (Mar. 2013 ) + -94.895 (Jun. 2013 ) + 127.207 (Sep. 2013 ) + -87.517 (Dec. 2013 ) = $138 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.

Education Management Corporation's net income from continuing operations for the three months ended in Dec. 2013 was $1 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

Education Management Corporation's depreciation, depletion and amortization for the three months ended in Dec. 2013 was $39 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.

Education Management Corporation's change in working capital for the three months ended in Dec. 2013 was $-174 Mil. It means Education Management Corporation's working capital declined by $174 Mil from Sep. 2013 to Dec. 2013 .

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

Education Management Corporation's cash flow from deferred tax for the three months ended in Dec. 2013 was $0 Mil.

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

Education Management Corporation'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).

Education Management Corporation's cash flow from others for the three months ended in Dec. 2013 was $47 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.

Education Management Corporation Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
NetIncomeFromContinuingOperations 77102813266104169230-1,516-268
CF_DDA 55657091100112123146159165
ChangeInWorkingCapital 32711041-27-134-181-443-194
CF_DeferredTax 00-73-21-8-3624-133-19
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -11926139781851811,922507
Cash Flow from Operations 163192279180153293307400-11191

Education Management Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
NetIncomeFromContinuingOperations 2763-417-1,189-1331-284-2-101
CF_DDA 39394140443940413939
ChangeInWorkingCapital 119-270-111-18075-17672-16550-174
CF_DeferredTax 000-133000-1900
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 37435431,2985042365504847
Cash Flow from Operations 221-12456-164157-63193-95127-88
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