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Walgreen Company (NYSE:WAG)
Cash Flow from Operations
$3,739 Mil (TTM As of Feb. 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 Feb. 2014, Walgreen Company's Net Income From Continuing Operations was $768 Mil. Its DDA was $331 Mil. Its Change In Working Capital was $250 Mil. Its cash flow from deferred tax was $-95 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $-150 Mil. In all, Walgreen Company's Cash Flow from Operations for the three months ended in Feb. 2014 was $1,104 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 Company's Cash Flow from Operations for the fiscal year that ended in Aug. 2013 is calculated as:

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

Walgreen Company Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2014 was 1379 (May. 2013 ) + 1123 (Aug. 2013 ) + 133 (Nov. 2013 ) + 1104 (Feb. 2014 ) = $3,739 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 Company's net income from continuing operations for the three months ended in Feb. 2014 was $768 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 Company's depreciation, depletion and amortization for the three months ended in Feb. 2014 was $331 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 Company's change in working capital for the three months ended in Feb. 2014 was $250 Mil. It means Walgreen Company's working capital increased by $250 Mil from Nov. 2013 to Feb. 2014 .

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

Walgreen Company's cash flow from deferred tax for the three months ended in Feb. 2014 was $-95 Mil.

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

Walgreen Company's cash flow from discontinued operations for the three months ended in Feb. 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 Company's cash flow from others for the three months ended in Feb. 2014 was $-150 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 Company Annual Data

Aug04Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13
NetIncomeFromContinuingOperations 1,3501,5601,7512,0412,1572,0062,0912,7142,1272,450
CF_DDA 4034825726768409751,0301,0861,1661,283
ChangeInWorkingCapital -264-70843-46721773416-43731667
CF_DeferredTax 66-71-10423-6126063132265148
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 89108178848297144-246142-247
Cash Flow from Operations 1,6441,3712,4402,3573,0394,1113,7443,6434,4314,301

Walgreen Company Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
NetIncomeFromContinuingOperations 554683537353413756624657704768
CF_DDA 277283296310313327318325332331
ChangeInWorkingCapital -8140878-106-214213562106-771250
CF_DeferredTax 21-289917330-3942115129-95
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 3829373859-59-167-80-261-150
Cash Flow from Operations 8091,0071,8477686011,1981,3791,1231331,104
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