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Brady Corp (NYSE:BRC)
Cash Flow from Operations
$128 Mil (TTM As of Jan. 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 Jan. 2016, Brady Corp's Net Income From Continuing Operations was $15 Mil. Its DDA was $9 Mil. Its Change In Working Capital was $-1 Mil. Its cash flow from deferred tax was $3 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $2 Mil. And its Cash Flow from Others was $0 Mil. In all, Brady Corp's Cash Flow from Operations for the three months ended in Jan. 2016 was $28 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. 2015 is calculated as:

Brady Corp's Cash Flow from Operations for the quarter that ended in Jan. 2016 is

Brady Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2016 was 28.81 (Apr. 2015 ) + 40.608 (Jul. 2015 ) + 30.37 (Oct. 2015 ) + 27.884 (Jan. 2016 ) = $128 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.

Brady Corp's net income from continuing operations for the three months ended in Jan. 2016 was $15 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. 2016 was $9 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. 2016 was $-1 Mil. It means Brady Corp's working capital declined by $1 Mil from Oct. 2015 to Jan. 2016 .

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. 2016 was $3 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. 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.

Brady Corp's stock based compensation for the three months ended in Jan. 2016 was $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. 2016 was $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 own currency.

Brady Corp Annual Data

Jul06Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15
NetIncomeFromContinuingOperations 1041091327082109-18-155-463
CF_DDA 35546155534944494539
ChangeInWorkingCapital -28-3822025102-1-332
CF_DeferredTax -20-2-9-7-8-1022-28-7
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0008101010254
Cash Flow from Others 5101222-211622715051
Cash Flow from Operations 1151362261271651671451449393

Brady Corp Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
NetIncomeFromContinuingOperations 241624-110141217-391915
CF_DDA 11111111101081199
ChangeInWorkingCapital -9-144-14-9-15323-1-1
CF_DeferredTax -20-6-192-3-4-313
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 3210111132
Cash Flow from Others -00015011347-00
Cash Flow from Operations 2616341819529413028
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