Switch to:
United Rentals Inc (NYSE:URI)
Cash Flow from Operations
$1,992 Mil (TTM As of Jun. 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 Jun. 2016, United Rentals Inc's Net Income From Continuing Operations was $134 Mil. Its DDA was $306 Mil. Its Change In Working Capital was $197 Mil. Its cash flow from deferred tax was $44 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $13 Mil. And its Cash Flow from Others was $-51 Mil. In all, United Rentals Inc's Cash Flow from Operations for the three months ended in Jun. 2016 was $643 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.

United Rentals Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2015 is calculated as:

United Rentals Inc's Cash Flow from Operations for the quarter that ended in Jun. 2016 is

United Rentals Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 307 (Sep. 2015 ) + 438 (Dec. 2015 ) + 604 (Mar. 2016 ) + 643 (Jun. 2016 ) = $1,992 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.

United Rentals Inc's net income from continuing operations for the three months ended in Jun. 2016 was $134 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

United Rentals Inc's depreciation, depletion and amortization for the three months ended in Jun. 2016 was $306 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.

United Rentals Inc's change in working capital for the three months ended in Jun. 2016 was $197 Mil. It means United Rentals Inc's working capital increased by $197 Mil from Mar. 2016 to Jun. 2016 .

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

United Rentals Inc's cash flow from deferred tax for the three months ended in Jun. 2016 was $44 Mil.

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

United Rentals Inc's cash flow from discontinued operations for the three months ended in Jun. 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.

United Rentals Inc's stock based compensation for the three months ended in Jun. 2016 was $13 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).

United Rentals Inc's cash flow from others for the three months ended in Jun. 2016 was $-51 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.

United Rentals Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
NetIncomeFromContinuingOperations 249363-704-62-2610175387540585
CF_DDA 4684915134744494808971,0981,1941,244
ChangeInWorkingCapital 5720-125-835-17-437-11-135-92
CF_DeferredTax 13061-1294-5839-16167261336
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0156881232467449
Cash Flow from Others -46-821,2032244-3170-136-133-127
Cash Flow from Operations 8588687644384526127211,5511,8011,995

United Rentals Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 60941921941158621516992134
CF_DDA 277299306312304307315318310306
ChangeInWorkingCapital 16584-130-25427874-147-297239197
CF_DeferredTax 2235771273931242422544
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1219172614111212913
Cash Flow from Others -2815-50-70-7566-112-6-71-51
Cash Flow from Operations 508546412335675575307438604643
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK