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GuruFocus has detected 4 Warning Signs with Trinity Industries Inc $TRN.
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Trinity Industries Inc (NYSE:TRN)
Cash Flow from Operations
$1,090 Mil (TTM As of Dec. 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 Dec. 2016, Trinity Industries Inc's Net Income From Continuing Operations was $74 Mil. Its DDA was $72 Mil. Its Change In Working Capital was $-24 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $8 Mil. And its Cash Flow from Others was $167 Mil. In all, Trinity Industries Inc's Cash Flow from Operations for the three months ended in Dec. 2016 was $298 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.

Trinity Industries Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2016 is calculated as:

Trinity Industries Inc's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

Trinity Industries Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 286.1 (Mar. 2016 ) + 200.3 (Jun. 2016 ) + 305.7 (Sep. 2016 ) + 298.1 (Dec. 2016 ) = $1,090 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

Trinity Industries Inc's net income from continuing operations for the three months ended in Dec. 2016 was $74 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

Trinity Industries Inc's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $72 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.

Trinity Industries Inc's change in working capital for the three months ended in Dec. 2016 was $-24 Mil. It means Trinity Industries Inc's working capital declined by $24 Mil from Sep. 2016 to Dec. 2016 .

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

Trinity Industries Inc's cash flow from deferred tax for the three months ended in Dec. 2016 was $0 Mil.

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

Trinity Industries Inc's cash flow from discontinued operations for the three months ended in Dec. 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.

Trinity Industries Inc's stock based compensation for the three months ended in Dec. 2016 was $8 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).

Trinity Industries Inc's cash flow from others for the three months ended in Dec. 2016 was $167 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 local exchange's currency.

Trinity Industries Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 293282-13869147252386709826365
CF_DDA 119140161181188194212245266283
ChangeInWorkingCapital -79-239366-153-293-62-23-81-16673
CF_DeferredTax 592510696112646000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 19191414232845536141
Cash Flow from Others -66-35284-9-14-10-3-107-48328
Cash Flow from Operations 3454196861711115276628199401,090

Trinity Industries Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 157146189221212204102999074
CF_DDA 61736466686969717172
ChangeInWorkingCapital -17189-149-8389-2240-4299-24
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1515161515151013108
Cash Flow from Others -4063-11-46-3544646136167
Cash Flow from Operations 175487109173348309286200306298
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