Switch to:
Ralph Lauren Corp (NYSE:RL)
Cash Flow from Operations
$811 Mil (TTM As of Jun. 2015)

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. 2015, Ralph Lauren Corp's Net Income From Continuing Operations was $64 Mil. Its DDA was $74 Mil. Its Change In Working Capital was $174 Mil. Its cash flow from deferred tax was $-18 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $32 Mil. And its Cash Flow from Others was $6 Mil. In all, Ralph Lauren Corp's Cash Flow from Operations for the three months ended in Jun. 2015 was $332 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. 2015 is calculated as:

Ralph Lauren Corp's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Ralph Lauren Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was -140 (Sep. 2014 ) + 615 (Dec. 2014 ) + 4 (Mar. 2015 ) + 332 (Jun. 2015 ) = $811 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. 2015 was $64 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. 2015 was $74 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. 2015 was $174 Mil. It means Ralph Lauren Corp's working capital increased by $174 Mil from Mar. 2015 to Jun. 2015 .

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. 2015 was $-18 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. 2015 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 Jun. 2015 was $32 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 Jun. 2015 was $6 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

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
NetIncomeFromContinuingOperations 3084014204083568681750776702
CF_DDA 127145201184181194225233258294
ChangeInWorkingCapital -85293185196-153-58-57-187-179
CF_DeferredTax 36-112-8-35-047-1514111
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00050607078889381
Cash Flow from Others 63708182467-38-25-9-34-15
Cash Flow from Operations 4497966957749076898851,019907894

Ralph Lauren Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 12718120523715316220121512464
CF_DDA 59606667656972787574
ChangeInWorkingCapital -13170-358236-135159-426327-239174
CF_DeferredTax 37-8-8-2138-3-6-222-18
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 23222131192319182132
Cash Flow from Others 7-30-1-10750-2116
Cash Flow from Operations 122295-75540147415-1406154332
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK