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Royal Caribbean Cruises Ltd (NYSE:RCL)
Cash Flow from Operations
$1,903 Mil (TTM As of Jun. 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 Jun. 2015, Royal Caribbean Cruises Ltd's Net Income From Continuing Operations was $185 Mil. Its DDA was $206 Mil. Its Change In Working Capital was $223 Mil. Its cash flow from deferred tax was $3 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $-4 Mil. In all, Royal Caribbean Cruises Ltd's Cash Flow from Operations for the three months ended in Jun. 2015 was $614 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.

Royal Caribbean Cruises Ltd's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Royal Caribbean Cruises Ltd's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Royal Caribbean Cruises Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 578.635 (Sep. 2014 ) + 284.195 (Dec. 2014 ) + 426.427 (Mar. 2015 ) + 613.918 (Jun. 2015 ) = $1,903 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.

Royal Caribbean Cruises Ltd's net income from continuing operations for the three months ended in Jun. 2015 was $185 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

Royal Caribbean Cruises Ltd's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $206 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.

Royal Caribbean Cruises Ltd's change in working capital for the three months ended in Jun. 2015 was $223 Mil. It means Royal Caribbean Cruises Ltd's working capital increased by $223 Mil from Mar. 2015 to Jun. 2015 .

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

Royal Caribbean Cruises Ltd's cash flow from deferred tax for the three months ended in Jun. 2015 was $3 Mil.

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

Royal Caribbean Cruises Ltd's cash flow from discontinued operations for the three months ended in Jun. 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.

Royal Caribbean Cruises Ltd's stock based compensation for the three months ended in Jun. 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).

Royal Caribbean Cruises Ltd's cash flow from others for the three months ended in Jun. 2015 was $-4 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.

Royal Caribbean Cruises Ltd Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 66363460357416251660718474764
CF_DDA 402422483520568644702730755772
ChangeInWorkingCapital 44-125179-1965321125162114158
CF_DeferredTax 000000028-2-44
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 2184-450183204427193
Cash Flow from Operations 1,1119491,2691,0718451,6631,4561,3821,4121,744

Royal Caribbean Cruises Ltd Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 762536672613849011045185
CF_DDA 189186189191194193192193200206
ChangeInWorkingCapital -2319420-7690232-159-4141223
CF_DeferredTax 0000300-44-13
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others -127-176132553041-4
Cash Flow from Operations 241432557182316565579284426614
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