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Meritage Homes Corp (NYSE:MTH)
Cash Flow from Operations
$-47 Mil (TTM As of Mar. 2016)

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. 2016, Meritage Homes Corp's Net Income From Continuing Operations was $21 Mil. Its DDA was $3 Mil. Its Change In Working Capital was $-113 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $5 Mil. And its Cash Flow from Others was $2 Mil. In all, Meritage Homes Corp's Cash Flow from Operations for the three months ended in Mar. 2016 was $-82 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.

Meritage Homes Corp's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

Meritage Homes Corp's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

Meritage Homes Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was -38.757 (Jun. 2015 ) + 23.702 (Sep. 2015 ) + 49.911 (Dec. 2015 ) + -81.817 (Mar. 2016 ) = $-47 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.

Meritage Homes Corp's net income from continuing operations for the three months ended in Mar. 2016 was $21 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

Meritage Homes Corp's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $3 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.

Meritage Homes Corp's change in working capital for the three months ended in Mar. 2016 was $-113 Mil. It means Meritage Homes Corp's working capital declined by $113 Mil from Dec. 2015 to Mar. 2016 .

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

Meritage Homes Corp's cash flow from deferred tax for the three months ended in Mar. 2016 was $0 Mil.

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

Meritage Homes Corp's cash flow from discontinued operations for the three months ended in Mar. 2016 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.

Meritage Homes Corp's stock based compensation for the three months ended in Mar. 2016 was $5 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).

Meritage Homes Corp's cash flow from others for the three months ended in Mar. 2016 was $2 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.

Meritage Homes Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 225-289-292-667-21105124142129
CF_DDA 2418169878101214
ChangeInWorkingCapital -300-184661140-85-272-241-386-171
CF_DeferredTax -49-112119000-78-900
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 006657891216
Cash Flow from Others 78546286121121782099
Cash Flow from Operations -22-2120018433-74-220-86-211-3

Meritage Homes Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
NetIncomeFromContinuingOperations 46253533491629305321
CF_DDA 3333334443
ChangeInWorkingCapital -99-164-82-103-38-61-76-15-20-113
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 2234354435
Cash Flow from Others 94-041-21192
Cash Flow from Operations -38-130-41-5918-38-392450-82
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