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GuruFocus has detected 1 Warning Sign with ArcelorMittal SA $MT.
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ArcelorMittal SA (NYSE:MT)
Cash Flow from Operations
$2,708 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, ArcelorMittal SA's Net Income From Continuing Operations was $358 Mil. Its DDA was $647 Mil. Its Change In Working Capital was $-1,650 Mil. Its cash flow from deferred tax was $161 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $0 Mil. And its Cash Flow from Others was $2,137 Mil. In all, ArcelorMittal SA's Cash Flow from Operations for the three months ended in Dec. 2016 was $1,653 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.

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

ArcelorMittal SA's Cash Flow from Operations for the quarter that ended in Dec. 2016 is

ArcelorMittal SA Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was -690 (Mar. 2016 ) + 869 (Jun. 2016 ) + 876 (Sep. 2016 ) + 1653 (Dec. 2016 ) = $2,708 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.

ArcelorMittal SA's net income from continuing operations for the three months ended in Dec. 2016 was $358 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

ArcelorMittal SA's depreciation, depletion and amortization for the three months ended in Dec. 2016 was $647 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.

ArcelorMittal SA's change in working capital for the three months ended in Dec. 2016 was $-1,650 Mil. It means ArcelorMittal SA's working capital declined by $1,650 Mil from Sep. 2016 to Dec. 2016 .

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

ArcelorMittal SA's cash flow from deferred tax for the three months ended in Dec. 2016 was $161 Mil.

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

ArcelorMittal SA'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.

ArcelorMittal SA's stock based compensation for the three months ended in Dec. 2016 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).

ArcelorMittal SA's cash flow from others for the three months ended in Dec. 2016 was $2,137 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.

ArcelorMittal SA Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 11,85010,4391713,3351,956-3,469-2,575-974-8,4231,734
CF_DDA 4,5705,0454,5744,3954,6964,7024,6953,9393,1922,721
ChangeInWorkingCapital 793-11,1743,290-2,531-7,893-429-1,912-3,079-2,503-3,168
CF_DeferredTax 01,128-4,432-1,479879-1,925215454902986
Cash Flow from Disc. Op. 000012300000
Stock Based Compensation 0000000000
Cash Flow from Others -6819,2143,6752952,0986,4613,8733,5308,983435
Cash Flow from Operations 16,53214,6527,2784,0151,8595,3404,2963,8702,1512,708

ArcelorMittal SA Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
NetIncomeFromContinuingOperations 22-955-728179-711-6,686-4161,124680358
CF_DDA 9461,2468078208045,525652729693647
ChangeInWorkingCapital -576994-1,691247-2881,343-1,188-249-565-1,650
CF_DeferredTax -159103857014402676079161
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000000000
Cash Flow from Others 268904612-297654990-414-735-112,137
Cash Flow from Operations 5012,292-9151,0194731,574-6908698761,653
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