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Education Management Corp (NAS:EDMC)
Cash Flow from Operations
$77 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, Education Management Corp's Net Income From Continuing Operations was $-468 Mil. Its DDA was $37 Mil. Its Change In Working Capital was $11 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 $552 Mil. In all, Education Management Corp's Cash Flow from Operations for the three months ended in Mar. 2014 was $132 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 Corp's Cash Flow from Operations for the fiscal year that ended in Jun. 2013 is calculated as:

Education Management Corp's Cash Flow from Operations for the quarter that ended in Mar. 2014 is

Education Management Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2014 was -94.895 (Jun. 2013 ) + 127.207 (Sep. 2013 ) + -87.517 (Dec. 2013 ) + 132.485 (Mar. 2014 ) = $77 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 Corp's net income from continuing operations for the three months ended in Mar. 2014 was $-468 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 Corp's depreciation, depletion and amortization for the three months ended in Mar. 2014 was $37 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 Corp's change in working capital for the three months ended in Mar. 2014 was $11 Mil. It means Education Management Corp's working capital increased by $11 Mil from Dec. 2013 to Mar. 2014 .

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

Education Management Corp's cash flow from deferred tax for the three months ended in Mar. 2014 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 Corp'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).

Education Management Corp's cash flow from others for the three months ended in Mar. 2014 was $552 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 Corp Annual Data

Jun04Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13
NetIncomeFromContinuingOperations 77102813266104169230-1,516-268
CF_DDA 55607091100112123146159165
ChangeInWorkingCapital 32711041-257-133-181-443-194
CF_DeferredTax 00-73-21-8-3624-133-19
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -12426139281851811,922507
Cash Flow from Operations 163193279180153293307400-11191

Education Management Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
NetIncomeFromContinuingOperations 63-417-1,189-1331-284-2-101-468
CF_DDA 39414044394041393937
ChangeInWorkingCapital -270-111-18075-17672-16550-17411
CF_DeferredTax 00-133000-19000
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 435431,2985042365504847552
Cash Flow from Operations -12456-164157-63193-95127-88132
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