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United Rentals Inc (NYSE:URI)
Cash Flow from Operations
$1,892 Mil (TTM As of Sep. 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 Sep. 2015, United Rentals Inc's Net Income From Continuing Operations was $215 Mil. Its DDA was $315 Mil. Its Change In Working Capital was $-147 Mil. Its cash flow from deferred tax was $24 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $12 Mil. And its Cash Flow from Others was $-112 Mil. In all, United Rentals Inc's Cash Flow from Operations for the three months ended in Sep. 2015 was $307 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. 2014 is calculated as:

United Rentals Inc's Cash Flow from Operations for the quarter that ended in Sep. 2015 is

United Rentals Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 335 (Dec. 2014 ) + 675 (Mar. 2015 ) + 575 (Jun. 2015 ) + 307 (Sep. 2015 ) = $1,892 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 Sep. 2015 was $215 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 Sep. 2015 was $315 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 Sep. 2015 was $-147 Mil. It means United Rentals Inc's working capital declined by $147 Mil from Jun. 2015 to Sep. 2015 .

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 Sep. 2015 was $24 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 Sep. 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.

United Rentals Inc's stock based compensation for the three months ended in Sep. 2015 was $12 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 Sep. 2015 was $-112 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 249363-704-60-2610175387540585
CF_DDA 4684915134744494808971,0981,1941,244
ChangeInWorkingCapital 5720-125-935-21-437-11-135-92
CF_DeferredTax 1306104-5839-16167261336
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0156881232467449
Cash Flow from Others -46-821,0742144-3170-136-133-127
Cash Flow from Operations 8588687644384526087211,5511,8011,995

United Rentals Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 143140609419219411586215169
CF_DDA 278284277299306312304307315318
ChangeInWorkingCapital -223-2116584-130-25427874-147-297
CF_DeferredTax 5870223577127393124242
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 15121219172614111212
Cash Flow from Others -34-49-2815-50-70-7566-112-6
Cash Flow from Operations 237436508546412335675575307438
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