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EarthLink Holdings Corp (NAS:ELNK)
Cash Flow from Operations
$124 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, EarthLink Holdings Corp's Net Income From Continuing Operations was $-280 Mil. Its DDA was $49 Mil. Its Change In Working Capital was $14 Mil. Its cash flow from deferred tax was $253 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $5 Mil. In all, EarthLink Holdings Corp's Cash Flow from Operations for the three months ended in Dec. 2013 was $41 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.

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

EarthLink Holdings Corp's Cash Flow from Operations for the quarter that ended in Dec. 2013 is

EarthLink Holdings Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 31.844 (Mar. 2013 ) + 11.696 (Jun. 2013 ) + 39.89 (Sep. 2013 ) + 40.726 (Dec. 2013 ) = $124 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.

EarthLink Holdings Corp's net income from continuing operations for the three months ended in Dec. 2013 was $-280 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

EarthLink Holdings Corp's depreciation, depletion and amortization for the three months ended in Dec. 2013 was $49 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.

EarthLink Holdings Corp's change in working capital for the three months ended in Dec. 2013 was $14 Mil. It means EarthLink Holdings Corp's working capital increased by $14 Mil from Sep. 2013 to Dec. 2013 .

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

EarthLink Holdings Corp's cash flow from deferred tax for the three months ended in Dec. 2013 was $253 Mil.

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

EarthLink Holdings Corp'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).

EarthLink Holdings Corp's cash flow from others for the three months ended in Dec. 2013 was $5 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.

EarthLink Holdings Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 1111435-13517928781358-539
CF_DDA 79474654362423160183183
ChangeInWorkingCapital -16-32-59-30-60-20-26-90-8-6
CF_DeferredTax 2171-2005016-0213
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 121412320176-8326258273
Cash Flow from Operations 18818911589231209154146191124

EarthLink Holdings Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
NetIncomeFromContinuingOperations 0357-11-0-236-11-11-280
CF_DDA 47474546464643444749
ChangeInWorkingCapital 6-2710-2342-36-3-23714
CF_DeferredTax 141-1-11-32-3-5253
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 17-282221260525
Cash Flow from Operations 71306622901332124041
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