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Cintas Corp (NAS:CTAS)
Cash Flow from Operations
$500 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, Cintas Corp's Net Income From Continuing Operations was $117 Mil. Its DDA was $42 Mil. Its Change In Working Capital was $-168 Mil. Its cash flow from deferred tax was $24 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $17 Mil. And its Cash Flow from Others was $-0 Mil. In all, Cintas Corp's Cash Flow from Operations for the three months ended in Feb. 2016 was $32 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.

Cintas Corp's Cash Flow from Operations for the fiscal year that ended in May. 2015 is calculated as:

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

Cintas Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2016 was 202.63 (May. 2015 ) + 143.083 (Aug. 2015 ) + 121.954 (Nov. 2015 ) + 32.117 (Feb. 2016 ) = $500 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.

Cintas Corp's net income from continuing operations for the three months ended in Feb. 2016 was $117 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

Cintas Corp's depreciation, depletion and amortization for the three months ended in Feb. 2016 was $42 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.

Cintas Corp's change in working capital for the three months ended in Feb. 2016 was $-168 Mil. It means Cintas Corp's working capital declined by $168 Mil from Nov. 2015 to Feb. 2016 .

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

Cintas Corp's cash flow from deferred tax for the three months ended in Feb. 2016 was $24 Mil.

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

Cintas Corp'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.

Cintas Corp's stock based compensation for the three months ended in Feb. 2016 was $17 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).

Cintas Corp's cash flow from others for the three months ended in Feb. 2016 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.

Cintas Corp Annual Data

May06May07May08May09May10May11May12May13May14May15
NetIncomeFromContinuingOperations 327335335226216247298315374431
CF_DDA 161176192200152151156166168141
ChangeInWorkingCapital -26-65837124-163-99-2330-17
CF_DeferredTax 0-02-1134857484721
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00712151520233047
Cash Flow from Others 05-04941433824-42-42
Cash Flow from Operations 462449545524562341470553608580

Cintas Corp Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
NetIncomeFromContinuingOperations 858512711012095105100345117
CF_DDA 37602340383825404142
ChangeInWorkingCapital -3236812-1-7446-36199-168
CF_DeferredTax 2-13828556-10424
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 88812131111241617
Cash Flow from Others 12-12-44-28-34101010-375-0
Cash Flow from Operations 1401632201481448520314312232
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