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Ralph Lauren Corp (NYSE:RL)
Cash Flow from Operations
$1,007 Mil (TTM As of Mar. 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 Mar. 2016, Ralph Lauren Corp's Net Income From Continuing Operations was $41 Mil. Its DDA was $83 Mil. Its Change In Working Capital was $-31 Mil. Its cash flow from deferred tax was $-4 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $18 Mil. And its Cash Flow from Others was $48 Mil. In all, Ralph Lauren Corp's Cash Flow from Operations for the three months ended in Mar. 2016 was $155 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.

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

Ralph Lauren Corp's Cash Flow from Operations for the quarter that ended in Mar. 2016 is

Ralph Lauren Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 332 (Jun. 2015 ) + 34 (Sep. 2015 ) + 486 (Dec. 2015 ) + 155 (Mar. 2016 ) = $1,007 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.

Ralph Lauren Corp's net income from continuing operations for the three months ended in Mar. 2016 was $41 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

Ralph Lauren Corp's depreciation, depletion and amortization for the three months ended in Mar. 2016 was $83 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.

Ralph Lauren Corp's change in working capital for the three months ended in Mar. 2016 was $-31 Mil. It means Ralph Lauren Corp's working capital declined by $31 Mil from Dec. 2015 to Mar. 2016 .

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

Ralph Lauren Corp's cash flow from deferred tax for the three months ended in Mar. 2016 was $-4 Mil.

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

Ralph Lauren Corp's cash flow from discontinued operations for the three months ended in Mar. 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.

Ralph Lauren Corp's stock based compensation for the three months ended in Mar. 2016 was $18 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).

Ralph Lauren Corp's cash flow from others for the three months ended in Mar. 2016 was $48 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.

Ralph Lauren Corp Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
NetIncomeFromContinuingOperations 401420406480568681750776702396
CF_DDA 145201184181194225232258294310
ChangeInWorkingCapital 293185163-153-58-56-187-179122
CF_DeferredTax -112-8-35-047-1514111-8
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 005060707888938197
Cash Flow from Others 70818424-38-25-9-34-1590
Cash Flow from Operations 7966957749076898851,0199078941,007

Ralph Lauren Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
NetIncomeFromContinuingOperations 1531622012151246416013141-22
CF_DDA 65697278757477768378
ChangeInWorkingCapital -135159-426327-239174-217196-3181
CF_DeferredTax 38-3-6-222-18-2034-43
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 19231918213222251818
Cash Flow from Others 750-211612244885
Cash Flow from Operations 147415-140615433234486155243
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