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Nike Inc (NYSE:NKE)
Cash Flow from Operations
$3,254 Mil (TTM As of Feb. 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 Feb. 2016, Nike Inc's Net Income From Continuing Operations was $950 Mil. Its DDA was $177 Mil. Its Change In Working Capital was $-462 Mil. Its cash flow from deferred tax was $33 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $60 Mil. And its Cash Flow from Others was $118 Mil. In all, Nike Inc's Cash Flow from Operations for the three months ended in Feb. 2016 was $876 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.

Nike Inc's Cash Flow from Operations for the fiscal year that ended in May. 2015 is calculated as:

Nike Inc's Cash Flow from Operations for the quarter that ended in Feb. 2016 is

Nike Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2016 was 1342 (May. 2015 ) + 491 (Aug. 2015 ) + 545 (Nov. 2015 ) + 876 (Feb. 2016 ) = $3,254 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.

Nike Inc's net income from continuing operations for the three months ended in Feb. 2016 was $950 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

Nike Inc's depreciation, depletion and amortization for the three months ended in Feb. 2016 was $177 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.

Nike Inc's change in working capital for the three months ended in Feb. 2016 was $-462 Mil. It means Nike Inc's working capital declined by $462 Mil from Nov. 2015 to Feb. 2016 .

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

Nike Inc's cash flow from deferred tax for the three months ended in Feb. 2016 was $33 Mil.

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

Nike Inc's cash flow from discontinued operations for the three months ended in Feb. 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.

Nike Inc's stock based compensation for the three months ended in Feb. 2016 was $60 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).

Nike Inc's cash flow from others for the three months ended in Feb. 2016 was $118 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.

Nike Inc Annual Data

May07May08May09May10May11May12May13May14May15May16
NetIncomeFromContinuingOperations 1,4921,8831,4871,9072,1332,2232,4852,6933,2733,760
CF_DDA 2703223833963584055136326490
ChangeInWorkingCapital -65-48-412695-708-799-42-4882560
CF_DeferredTax 34-301-2948-76-6021-11-1130
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 01411711591051301741771910
Cash Flow from Others 148-61401-000-1240424-3,760
Cash Flow from Operations 1,8791,9361,7363,1641,8121,8993,0273,0034,6800

Nike Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
NetIncomeFromContinuingOperations 6826989626557918651,179785950846
CF_DDA 1341551551611651681651571770
ChangeInWorkingCapital -101387-565-205625401-908-493-4620
CF_DeferredTax -80453514-6-156-31-8330
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 4346434948515462600
Cash Flow from Others 59-353190168133242118-846
Cash Flow from Operations 7371,3286838641,7911,3424915458760
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