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Airgas Inc (NYSE:ARG)
Cash Flow from Operations
$745 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, Airgas Inc's Net Income From Continuing Operations was $88 Mil. Its DDA was $86 Mil. Its Change In Working Capital was $43 Mil. Its cash flow from deferred tax was $-6 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $14 Mil. And its Cash Flow from Others was $-2 Mil. In all, Airgas Inc's Cash Flow from Operations for the three months ended in Jun. 2015 was $224 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.

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

Airgas Inc's Cash Flow from Operations for the quarter that ended in Jun. 2015 is

Airgas Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 144.946 (Sep. 2014 ) + 172.766 (Dec. 2014 ) + 203.353 (Mar. 2015 ) + 223.743 (Jun. 2015 ) = $745 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.

Airgas Inc's net income from continuing operations for the three months ended in Jun. 2015 was $88 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

Airgas Inc's depreciation, depletion and amortization for the three months ended in Jun. 2015 was $86 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.

Airgas Inc's change in working capital for the three months ended in Jun. 2015 was $43 Mil. It means Airgas Inc's working capital increased by $43 Mil from Mar. 2015 to Jun. 2015 .

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

Airgas Inc's cash flow from deferred tax for the three months ended in Jun. 2015 was $-6 Mil.

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

Airgas Inc'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.

Airgas Inc's stock based compensation for the three months ended in Jun. 2015 was $14 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).

Airgas Inc's cash flow from others for the three months ended in Jun. 2015 was $-2 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.

Airgas Inc Annual Data

Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15
NetIncomeFromContinuingOperations 124154223261196250313341351368
CF_DDA 128147190221235251270289305329
ChangeInWorkingCapital 42-5842-2259-324-176-13659-39
CF_DeferredTax 47527510366706936-733
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 001721232426272930
Cash Flow from Others 6304-12154-78-3
Cash Flow from Operations 346326550583600275506550745718

Airgas Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
NetIncomeFromContinuingOperations 86859583888998938888
CF_DDA 74747678788081848486
ChangeInWorkingCapital -40-635-73618-38-301043
CF_DeferredTax 224-16-16-5-22119-6
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 4146541565414
Cash Flow from Others -1-0-090-1-0-0-1-2
Cash Flow from Operations 145171210173191197145173203224
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