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Plains All American Pipeline LP (NYSE:PAA)
Cash Flow from Operations
$1,580 Mil (TTM As of Jun. 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 Jun. 2014, Plains All American Pipeline LP's Net Income From Continuing Operations was $287 Mil. Its DDA was $100 Mil. Its Change In Working Capital was $-274 Mil. Its cash flow from deferred tax was $6 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $22 Mil. In all, Plains All American Pipeline LP's Cash Flow from Operations for the three months ended in Jun. 2014 was $141 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.

Plains All American Pipeline LP's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

Plains All American Pipeline LP's Cash Flow from Operations for the quarter that ended in Jun. 2014 is

Plains All American Pipeline LP Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2014 was 257 (Sep. 2013 ) + 360 (Dec. 2013 ) + 822 (Mar. 2014 ) + 141 (Jun. 2014 ) = $1,580 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.

Plains All American Pipeline LP's net income from continuing operations for the three months ended in Jun. 2014 was $287 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

Plains All American Pipeline LP's depreciation, depletion and amortization for the three months ended in Jun. 2014 was $100 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.

Plains All American Pipeline LP's change in working capital for the three months ended in Jun. 2014 was $-274 Mil. It means Plains All American Pipeline LP's working capital declined by $274 Mil from Mar. 2014 to Jun. 2014 .

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

Plains All American Pipeline LP's cash flow from deferred tax for the three months ended in Jun. 2014 was $6 Mil.

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

Plains All American Pipeline LP's cash flow from discontinued operations for the three months ended in Jun. 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).

Plains All American Pipeline LP's cash flow from others for the three months ended in Jun. 2014 was $22 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.

Plains All American Pipeline LP Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 1302182853654375675129941,1271,391
CF_DDA 6784100181211236256249482375
ChangeInWorkingCapital -103-324-703190139-461-6051,002-46674
CF_DeferredTax 0000-1-90700
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 1047426071329611397114
Cash Flow from Operations 10424-2757968573652592,3651,2401,954

Plains All American Pipeline LP Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
NetIncomeFromContinuingOperations 237387173330536301237317385287
CF_DDA 608621012682919211096100
ChangeInWorkingCapital 20-600127-13304-63-89-78254-274
CF_DeferredTax 0740710-70126
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 015118-83501924117522
Cash Flow from Operations 31731532360979358257360822141
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