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Health Management Associates, Inc. (NYSE:HMA)
Cash Flow from Operations
$259 Mil (TTM As of Sep. 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 Sep. 2013, Health Management Associates, Inc.'s Net Income From Continuing Operations was $-73 Mil. Its DDA was $102 Mil. Its Change In Working Capital was $-365 Mil. Its cash flow from deferred tax was $23 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $305 Mil. In all, Health Management Associates, Inc.'s Cash Flow from Operations for the three months ended in Sep. 2013 was $-7 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.

Health Management Associates, Inc.'s Cash Flow from Operations for the fiscal year that ended in Dec. 2012 is calculated as:

Health Management Associates, Inc.'s Cash Flow from Operations for the quarter that ended in Sep. 2013 is

Health Management Associates, Inc. Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2013 was 139.208 (Dec. 2012 ) + 19.241 (Mar. 2013 ) + 108.221 (Jun. 2013 ) + -7.254 (Sep. 2013 ) = $259 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.

Health Management Associates, Inc.'s net income from continuing operations for the three months ended in Sep. 2013 was $-73 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

Health Management Associates, Inc.'s depreciation, depletion and amortization for the three months ended in Sep. 2013 was $102 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.

Health Management Associates, Inc.'s change in working capital for the three months ended in Sep. 2013 was $-365 Mil. It means Health Management Associates, Inc.'s working capital declined by $365 Mil from Jun. 2013 to Sep. 2013 .

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

Health Management Associates, Inc.'s cash flow from deferred tax for the three months ended in Sep. 2013 was $23 Mil.

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

Health Management Associates, Inc.'s cash flow from discontinued operations for the three months ended in Sep. 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).

Health Management Associates, Inc.'s cash flow from others for the three months ended in Sep. 2013 was $305 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.

Health Management Associates, Inc. Annual Data

Sep03Sep04Sep05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
NetIncomeFromContinuingOperations 282325354183120184164172201185
CF_DDA 109129155185223246244249272360
ChangeInWorkingCapital -289-322-260-387-631-485-607-657-785-955
CF_DeferredTax 377938-10966111902076-3
Cash Flow from Disc. Op. 000-9-20-28114-7-2
Cash Flow from Others 1952472775865533675476527861,013
Cash Flow from Operations 334458564450311395449440544597

Health Management Associates, Inc. Quarterly Data

Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13
NetIncomeFromContinuingOperations 555011346474943285-73
CF_DDA 666773818894969799102
ChangeInWorkingCapital -146-161-277-301-135-230-289-374-268-365
CF_DeferredTax 23528-10-1411913923
Cash Flow from Disc. Op. 2-9-3-32-0-1000
Cash Flow from Others 179196156248241253271255263305
Cash Flow from Operations 158178896222916713919108-7
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