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GuruFocus has detected 5 Warning Signs with Republic Services Inc $RSG.
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Republic Services Inc (NYSE:RSG)
Cash Flow from Operations
$1,861 Mil (TTM As of Mar. 2017)

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 Mar. 2017, Republic Services Inc's Net Income From Continuing Operations was $188 Mil. Its DDA was $270 Mil. Its Change In Working Capital was $-49 Mil. Its cash flow from deferred tax was $9 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $10 Mil. And its Cash Flow from Others was $17 Mil. In all, Republic Services Inc's Cash Flow from Operations for the three months ended in Mar. 2017 was $444 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.

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

Republic Services Inc's Cash Flow from Operations for the quarter that ended in Mar. 2017 is

Republic Services Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 412.8 (Jun. 2016 ) + 515.3 (Sep. 2016 ) + 488.2 (Dec. 2016 ) + 444.3 (Mar. 2017 ) = $1,861 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.

Republic Services Inc's net income from continuing operations for the three months ended in Mar. 2017 was $188 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

Republic Services Inc's depreciation, depletion and amortization for the three months ended in Mar. 2017 was $270 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.

Republic Services Inc's change in working capital for the three months ended in Mar. 2017 was $-49 Mil. It means Republic Services Inc's working capital declined by $49 Mil from Dec. 2016 to Mar. 2017 .

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

Republic Services Inc's cash flow from deferred tax for the three months ended in Mar. 2017 was $9 Mil.

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

Republic Services Inc's cash flow from discontinued operations for the three months ended in Mar. 2017 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.

Republic Services Inc's stock based compensation for the three months ended in Mar. 2017 was $10 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).

Republic Services Inc's cash flow from others for the three months ended in Mar. 2017 was $17 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.

Republic Services Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
NetIncomeFromContinuingOperations 29074497508589572589548750613
CF_DDA 3063548709149229279549851,0501,070
ChangeInWorkingCapital 10-79-252-379-407-377-257-296-317-205
CF_DeferredTax 28-30-256133584-39-911747
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0241525212119171923
Cash Flow from Others 2817029230530828728128460299
Cash Flow from Operations 6615121,3971,4341,7671,5141,5481,5301,6801,848

Republic Services Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
NetIncomeFromContinuingOperations 5117319021517215718186190188
CF_DDA 248253266267265263270272265270
ChangeInWorkingCapital -7266-70-80-232-20-84-11514-49
CF_DeferredTax -4-11-10129-31249-119
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 37444766610
Cash Flow from Others 203916181829282182517
Cash Flow from Operations 428496405423355432413515488444
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