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Avon Products Inc (NYSE:AVP)
Cash Flow from Operations
$274 Mil (TTM As of Mar. 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 Mar. 2015, Avon Products Inc's Net Income From Continuing Operations was $-146 Mil. Its DDA was $41 Mil. Its Change In Working Capital was $-289 Mil. Its cash flow from deferred tax was $28 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $-0 Mil. And its Cash Flow from Others was $167 Mil. In all, Avon Products Inc's Cash Flow from Operations for the three months ended in Mar. 2015 was $-198 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.

Avon Products Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2014 is calculated as:

Avon Products Inc's Cash Flow from Operations for the quarter that ended in Mar. 2015 is

Avon Products Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 105.5 (Jun. 2014 ) + 132.9 (Sep. 2014 ) + 234 (Dec. 2014 ) + -198.1 (Mar. 2015 ) = $274 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.

Avon Products Inc's net income from continuing operations for the three months ended in Mar. 2015 was $-146 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

Avon Products Inc's depreciation, depletion and amortization for the three months ended in Mar. 2015 was $41 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.

Avon Products Inc's change in working capital for the three months ended in Mar. 2015 was $-289 Mil. It means Avon Products Inc's working capital declined by $289 Mil from Dec. 2014 to Mar. 2015 .

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

Avon Products Inc's cash flow from deferred tax for the three months ended in Mar. 2015 was $28 Mil.

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

Avon Products Inc's cash flow from discontinued operations for the three months ended in Mar. 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.

Avon Products Inc's stock based compensation for the three months ended in Mar. 2015 was $-0 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).

Avon Products Inc's cash flow from others for the three months ended in Mar. 2015 was $167 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.

Avon Products Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
NetIncomeFromContinuingOperations 84847852889461959552693-1-385
CF_DDA 140160172187175195240213225193
ChangeInWorkingCapital -289-127-547-650-326-466-641-280-203-307
CF_DeferredTax -32-111-112-62-166-103-19728-129245
Cash Flow from Disc. Op. 00002674-112810
Stock Based Compensation 006255555837414339
Cash Flow from Others 229397487324399349692449520575
Cash Flow from Operations 896796590748782702656556536360

Avon Products Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
NetIncomeFromContinuingOperations -36-1285-6-68-1672092-330-146
CF_DDA 54566455504751474841
ChangeInWorkingCapital 97-305-48-159309-256-50-5958-289
CF_DeferredTax 130-3-25-22-79-10-40-3833228
Cash Flow from Disc. Op. 0-2182000000
Stock Based Compensation 612141071213411-0
Cash Flow from Others 86136956422526311187115167
Cash Flow from Operations 337-11718623443-113106133234-198
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