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AutoZone Inc (NYSE:AZO)
Cash Flow from Operations
$1,577 Mil (TTM As of Aug. 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 Aug. 2016, AutoZone Inc's Net Income From Continuing Operations was $427 Mil. Its DDA was $94 Mil. Its Change In Working Capital was $17 Mil. Its cash flow from deferred tax was $47 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $11 Mil. And its Cash Flow from Others was $-66 Mil. In all, AutoZone Inc's Cash Flow from Operations for the three months ended in Aug. 2016 was $530 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.

AutoZone Inc's Cash Flow from Operations for the fiscal year that ended in Aug. 2016 is calculated as:

AutoZone Inc's Cash Flow from Operations for the quarter that ended in Aug. 2016 is

AutoZone Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2016 was 323.502 (Nov. 2015 ) + 207.051 (Feb. 2016 ) + 516.347 (May. 2016 ) + 530.429 (Aug. 2016 ) = $1,577 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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.

AutoZone Inc's net income from continuing operations for the three months ended in Aug. 2016 was $427 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

AutoZone Inc's depreciation, depletion and amortization for the three months ended in Aug. 2016 was $94 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.

AutoZone Inc's change in working capital for the three months ended in Aug. 2016 was $17 Mil. It means AutoZone Inc's working capital increased by $17 Mil from May. 2016 to Aug. 2016 .

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

AutoZone Inc's cash flow from deferred tax for the three months ended in Aug. 2016 was $47 Mil.

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

AutoZone Inc's cash flow from discontinued operations for the three months ended in Aug. 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.

AutoZone Inc's stock based compensation for the three months ended in Aug. 2016 was $11 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).

AutoZone Inc's cash flow from others for the three months ended in Aug. 2016 was $-66 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 local exchange's currency.

AutoZone Inc Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
NetIncomeFromContinuingOperations 5966426577388499301,0161,0701,1601,241
CF_DDA 161170180199196212227251270297
ChangeInWorkingCapital 64322627220178173297763
CF_DeferredTax 256746-9452620-153645
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0181919273337394140
Cash Flow from Others 0-8-5-22-26-55-59-34-59-108
Cash Flow from Operations 8459219241,1961,2921,2241,4151,3411,5251,577

AutoZone Inc Quarterly Data

May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16Aug16
NetIncomeFromContinuingOperations 285374238212309401258229328427
CF_DDA 58796160628766696994
ChangeInWorkingCapital 117-7976-156153411-10213717
CF_DeferredTax -07-1-844119-1247
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 8109119119101011
Cash Flow from Others -6-20-8-17-15-18-22-7-15-66
Cash Flow from Operations 463370375101523526324207516530
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