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Ralph Lauren Corp (NYSE:RL)
Cash Flow from Operations
$1,027 Mil (TTM As of Jun. 2014)

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 Jun. 2014, Ralph Lauren Corp's Net Income From Continuing Operations was $162 Mil. Its DDA was $69 Mil. Its Change In Working Capital was $159 Mil. Its cash flow from deferred tax was $-3 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $28 Mil. In all, Ralph Lauren Corp's Cash Flow from Operations for the three months ended in Jun. 2014 was $415 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. 2014 is calculated as:

Ralph Lauren Corp's Cash Flow from Operations for the quarter that ended in Jun. 2014 is

Ralph Lauren Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2014 was -75 (Sep. 2013 ) + 540 (Dec. 2013 ) + 147 (Mar. 2014 ) + 415 (Jun. 2014 ) = $1,027 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 Jun. 2014 was $162 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 Jun. 2014 was $69 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 Jun. 2014 was $159 Mil. It means Ralph Lauren Corp's working capital increased by $159 Mil from Mar. 2014 to Jun. 2014 .

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 Jun. 2014 was $-3 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 Jun. 2014 was $0 Mil.

6. 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 Jun. 2014 was $28 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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

Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14
NetIncomeFromContinuingOperations 1903084014204083568681750776
CF_DDA 102127145201184181194225233258
ChangeInWorkingCapital -39-85293185196-153-58-57-187
CF_DeferredTax 1036-112-8-35-047-15141
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 11863708113152732537959
Cash Flow from Operations 3824497966957749076898851,019907

Ralph Lauren Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
NetIncomeFromContinuingOperations 94193214216127181205237153162
CF_DDA 57565761596066676569
ChangeInWorkingCapital -6920-257311-13170-358236-135159
CF_DeferredTax 6-611-2837-8-8-2138-3
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 126133030-820212628
Cash Flow from Operations 10126938590122295-75540147415
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