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GuruFocus has detected 6 Warning Signs with Brady Corp $BRC.
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Brady Corp (NYSE:BRC)
Cash Flow from Operations
USD 134 Mil (TTM As of Jan. 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 Jan. 2017, Brady Corp's Net Income From Continuing Operations was USD 25 Mil. Its DDA was USD 7 Mil. Its Change In Working Capital was USD -8 Mil. Its cash flow from deferred tax was USD -7 Mil. Its Cash Flow from Discontinued Operations was USD 0 Mil. Its Stock Based Compensation was USD 2 Mil. And its Cash Flow from Others was USD -0 Mil. In all, Brady Corp's Cash Flow from Operations for the three months ended in Jan. 2017 was USD 19 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.

Brady Corp's Cash Flow from Operations for the fiscal year that ended in Jul. 2016 is calculated as:

Brady Corp's Cash Flow from Operations for the quarter that ended in Jan. 2017 is

Brady Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2017 was 40.296 (Apr. 2016 ) + 40.426 (Jul. 2016 ) + 33.993 (Oct. 2016 ) + 19.341 (Jan. 2017 ) = USD 134 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.

Brady Corp's net income from continuing operations for the three months ended in Jan. 2017 was USD 25 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

Brady Corp's depreciation, depletion and amortization for the three months ended in Jan. 2017 was USD 7 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.

Brady Corp's change in working capital for the three months ended in Jan. 2017 was USD -8 Mil. It means Brady Corp's working capital declined by USD 8 Mil from Oct. 2016 to Jan. 2017 .

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

Brady Corp's cash flow from deferred tax for the three months ended in Jan. 2017 was USD -7 Mil.

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

Brady Corp's cash flow from discontinued operations for the three months ended in Jan. 2017 was USD 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.

Brady Corp's stock based compensation for the three months ended in Jan. 2017 was USD 2 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).

Brady Corp's cash flow from others for the three months ended in Jan. 2017 was USD -0 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.

Brady Corp Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
NetIncomeFromContinuingOperations 1091327082109-18-155-46380
CF_DDA 54615553494449453932
ChangeInWorkingCapital -3822025102-1-33216
CF_DeferredTax 0-2-9-7-8-1022-28-72
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0081010102548
Cash Flow from Others 101222-2116227150510
Cash Flow from Operations 1362261271651671451449393139

Brady Corp Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
NetIncomeFromContinuingOperations 141217-39191521252325
CF_DDA 1010811997877
ChangeInWorkingCapital -9-15323-1-1107-1-8
CF_DeferredTax 2-3-4-313-0-12-7
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1111322232
Cash Flow from Others 11347-00-0-0-0-0
Cash Flow from Operations 1952941302840403419
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