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AutoZone Inc (NYSE:AZO)
Cash Flow from Operations
$1,579 Mil (TTM As of Feb. 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 Feb. 2016, AutoZone Inc's Net Income From Continuing Operations was $229 Mil. Its DDA was $69 Mil. Its Change In Working Capital was $-102 Mil. Its cash flow from deferred tax was $9 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $10 Mil. And its Cash Flow from Others was $-7 Mil. In all, AutoZone Inc's Cash Flow from Operations for the three months ended in Feb. 2016 was $207 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. 2015 is calculated as:

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

AutoZone Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2016 was 522.574 (May. 2015 ) + 526.011 (Aug. 2015 ) + 323.502 (Nov. 2015 ) + 207.051 (Feb. 2016 ) = $1,579 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.

AutoZone Inc's net income from continuing operations for the three months ended in Feb. 2016 was $229 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 Feb. 2016 was $69 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 Feb. 2016 was $-102 Mil. It means AutoZone Inc's working capital declined by $102 Mil from Nov. 2015 to Feb. 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 Feb. 2016 was $9 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 Feb. 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 Feb. 2016 was $10 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 Feb. 2016 was $-7 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.

AutoZone Inc Annual Data

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
NetIncomeFromContinuingOperations 5695966426577388499301,0161,0701,160
CF_DDA 141161170180192205212227251270
ChangeInWorkingCapital 69643226272201781731260
CF_DeferredTax 36256746-9452620-1536
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 001819192733373941
Cash Flow from Others 70-8-5-16-35-55-59-17-42
Cash Flow from Operations 8238459219241,1961,2921,2241,4151,3411,525

AutoZone Inc Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
NetIncomeFromContinuingOperations 218193285374238212309401258229
CF_DDA 56585879616062876669
ChangeInWorkingCapital 77-86117-9676-156153-1311-102
CF_DeferredTax 2-23-07-1-844119
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 911810911911910
Cash Flow from Others -5-3-6-4-8-17-15-1-22-7
Cash Flow from Operations 357151463370375101523526324207
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