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Walgreen Co (NYSE:WAG)
Cash Flow from Operations
$3,893 Mil (TTM As of Aug. 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 Aug. 2014, Walgreen Co's Net Income From Continuing Operations was $-205 Mil. Its DDA was $315 Mil. Its Change In Working Capital was $598 Mil. Its cash flow from deferred tax was $-41 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $717 Mil. In all, Walgreen Co's Cash Flow from Operations for the three months ended in Aug. 2014 was $1,384 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.

Walgreen Co's Cash Flow from Operations for the fiscal year that ended in Aug. 2014 is calculated as:

Walgreen Co's Cash Flow from Operations for the quarter that ended in Aug. 2014 is

Walgreen Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2014 was 133 (Nov. 2013 ) + 1104 (Feb. 2014 ) + 1272 (May. 2014 ) + 1384 (Aug. 2014 ) = $3,893 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.

Walgreen Co's net income from continuing operations for the three months ended in Aug. 2014 was $-205 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

Walgreen Co's depreciation, depletion and amortization for the three months ended in Aug. 2014 was $315 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.

Walgreen Co's change in working capital for the three months ended in Aug. 2014 was $598 Mil. It means Walgreen Co's working capital increased by $598 Mil from May. 2014 to Aug. 2014 .

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

Walgreen Co's cash flow from deferred tax for the three months ended in Aug. 2014 was $-41 Mil.

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

Walgreen Co's cash flow from discontinued operations for the three months ended in Aug. 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).

Walgreen Co's cash flow from others for the three months ended in Aug. 2014 was $717 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.

Walgreen Co Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
NetIncomeFromContinuingOperations 1,5601,7512,0412,1572,0062,0912,7142,1272,4502,031
CF_DDA 4825726768409751,0301,0861,1661,2831,316
ChangeInWorkingCapital -70843-46721773416-43731667210
CF_DeferredTax -71-10423-6126063132265148177
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 108178848297144-246142-247159
Cash Flow from Operations 1,3712,4402,3573,0394,1113,7443,6434,4314,3013,893

Walgreen Co Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
NetIncomeFromContinuingOperations 537353413756624657704768764-205
CF_DDA 296310313327318325332331338315
ChangeInWorkingCapital 878-106-214213562106-771250133598
CF_DeferredTax 9917330-3942115129-95184-41
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 373859-59-167-80-261-150-147717
Cash Flow from Operations 1,8477686011,1981,3791,1231331,1041,2721,384
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