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Ross Stores Inc (NAS:ROST)
Cash Flow from Operations
$1,326 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, Ross Stores Inc's Net Income From Continuing Operations was $264 Mil. Its DDA was $73 Mil. Its Change In Working Capital was $142 Mil. Its cash flow from deferred tax was $60 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $25 Mil. And its Cash Flow from Others was $0 Mil. In all, Ross Stores Inc's Cash Flow from Operations for the three months ended in Jan. 2016 was $564 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.

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

Ross Stores Inc's Cash Flow from Operations for the quarter that ended in Jan. 2016 is

Ross Stores Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2016 was 413.988 (Apr. 2015 ) + 176.383 (Jul. 2015 ) + 171.656 (Oct. 2015 ) + 564.225 (Jan. 2016 ) = $1,326 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.

Ross Stores Inc's net income from continuing operations for the three months ended in Jan. 2016 was $264 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

Ross Stores Inc's depreciation, depletion and amortization for the three months ended in Jan. 2016 was $73 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.

Ross Stores Inc's change in working capital for the three months ended in Jan. 2016 was $142 Mil. It means Ross Stores Inc's working capital increased by $142 Mil from Oct. 2015 to Jan. 2016 .

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

Ross Stores Inc's cash flow from deferred tax for the three months ended in Jan. 2016 was $60 Mil.

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

Ross Stores Inc'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.

Ross Stores Inc's stock based compensation for the three months ended in Jan. 2016 was $25 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).

Ross Stores Inc'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.

Ross Stores Inc Annual Data

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
NetIncomeFromContinuingOperations 2422613054435556577878379251,021
CF_DDA 108121142159161160185206233275
ChangeInWorkingCapital 139-4487243-62-60-3-54137-97
CF_DeferredTax -11-112416-1822-39-152556
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0252326374049475371
Cash Flow from Others 29131111100
Cash Flow from Operations 5073545838886738209801,0221,3731,326

Ross Stores Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
NetIncomeFromContinuingOperations 218244240193249282259216264291
CF_DDA 57565460636365737374
ChangeInWorkingCapital 69190-58-101455-159-13514276
CF_DeferredTax -142-12-1752-1-526011
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 11121314141416162518
Cash Flow from Others 0000-00000-0
Cash Flow from Operations 341505237240391414176172564469
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