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Brown-Forman Corp (NYSE:BF.B)
Cash Flow from Operations
$643 Mil (TTM As of Jul. 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 Jul. 2015, Brown-Forman Corp's Net Income From Continuing Operations was $156 Mil. Its DDA was $13 Mil. Its Change In Working Capital was $-27 Mil. Its cash flow from deferred tax was $2 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $3 Mil. And its Cash Flow from Others was $0 Mil. In all, Brown-Forman Corp's Cash Flow from Operations for the three months ended in Jul. 2015 was $147 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.

Brown-Forman Corp's Cash Flow from Operations for the fiscal year that ended in Apr. 2015 is calculated as:

Brown-Forman Corp's Cash Flow from Operations for the quarter that ended in Jul. 2015 is

Brown-Forman Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Jul. 2015 was -42 (Oct. 2014 ) + 305 (Jan. 2015 ) + 233 (Apr. 2015 ) + 147 (Jul. 2015 ) = $643 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.

Brown-Forman Corp's net income from continuing operations for the three months ended in Jul. 2015 was $156 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

Brown-Forman Corp's depreciation, depletion and amortization for the three months ended in Jul. 2015 was $13 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.

Brown-Forman Corp's change in working capital for the three months ended in Jul. 2015 was $-27 Mil. It means Brown-Forman Corp's working capital declined by $27 Mil from Apr. 2015 to Jul. 2015 .

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

Brown-Forman Corp's cash flow from deferred tax for the three months ended in Jul. 2015 was $2 Mil.

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

Brown-Forman Corp's cash flow from discontinued operations for the three months ended in Jul. 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.

Brown-Forman Corp's stock based compensation for the three months ended in Jul. 2015 was $3 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).

Brown-Forman Corp's cash flow from others for the three months ended in Jul. 2015 was $0 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.

Brown-Forman Corp Annual Data

Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13Apr14Apr15
NetIncomeFromContinuingOperations 320389440435449572513591659684
CF_DDA 42445255595649515051
ChangeInWorkingCapital -50-8530-207-102-109-144-69-157
CF_DeferredTax -33-751211325326-56
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00107899111315
Cash Flow from Others 6414-3211-401219
Cash Flow from Operations 343355534491545527516537649608

Brown-Forman Corp Quarterly Data

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
NetIncomeFromContinuingOperations 113143206177133150208185141156
CF_DDA 15121212141312131313
ChangeInWorkingCapital 39-77-951390-55-2469450-27
CF_DeferredTax -312-18-16171-1910142
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 4333433363
Cash Flow from Others 2000100090
Cash Flow from Operations 17093108189259112-42305233147
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