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Goodyear Tire & Rubber Co (NAS:GT)
Cash Flow from Operations
$1,621 Mil (TTM As of Mar. 2015)

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. 2015, Goodyear Tire & Rubber Co's Net Income From Continuing Operations was $236 Mil. Its DDA was $172 Mil. Its Change In Working Capital was $-573 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-97 Mil. In all, Goodyear Tire & Rubber Co's Cash Flow from Operations for the three months ended in Mar. 2015 was $-262 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.

Goodyear Tire & Rubber Co's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Goodyear Tire & Rubber Co's Cash Flow from Operations for the quarter that ended in Mar. 2015 is

Goodyear Tire & Rubber Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 409 (Jun. 2014 ) + 195 (Sep. 2014 ) + 1279 (Dec. 2014 ) + -262 (Mar. 2015 ) = $1,621 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.

Goodyear Tire & Rubber Co's net income from continuing operations for the three months ended in Mar. 2015 was $236 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

Goodyear Tire & Rubber Co's depreciation, depletion and amortization for the three months ended in Mar. 2015 was $172 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.

Goodyear Tire & Rubber Co's change in working capital for the three months ended in Mar. 2015 was $-573 Mil. It means Goodyear Tire & Rubber Co's working capital declined by $573 Mil from Dec. 2014 to Mar. 2015 .

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

Goodyear Tire & Rubber Co's cash flow from deferred tax for the three months ended in Mar. 2015 was $0 Mil.

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

Goodyear Tire & Rubber Co's cash flow from discontinued operations for the three months ended in Mar. 2015 was $0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Goodyear Tire & Rubber Co's stock based compensation for the three months ended in Mar. 2015 was $0 Mil.

7. 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).

Goodyear Tire & Rubber Co's cash flow from others for the three months ended in Mar. 2015 was $-97 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, 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.

Goodyear Tire & Rubber Co Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 228-330139-23-364-1644172376752,521
CF_DDA 669656614660636652715687722732
ChangeInWorkingCapital 397614-26-1831,364564-256506565258
CF_DeferredTax -132-4500000000
Cash Flow from Disc. Op. 00270000000
Stock Based Compensation 0000000000
Cash Flow from Others -278-345-649-1,193-339-128-103-392-1,024-3,171
Cash Flow from Operations 884550105-7391,2979247731,038938340

Goodyear Tire & Rubber Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations -731193195256-382321992,128236
CF_DDA 174177180182183183188182179172
ChangeInWorkingCapital 1,278-388195-146904-68081-1851,042-573
CF_DeferredTax 00030006100
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -78-757-93-70-107-1,008-92-62-2,070-97
Cash Flow from Operations 1,367-9374751641,236-1,5434091951,279-262
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