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Estee Lauder Cos Inc (NYSE:EL)
Cash Flow from Operations
$1,747 Mil (TTM As of Dec. 2014)

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 Dec. 2014, Estee Lauder Cos Inc's Net Income From Continuing Operations was $438 Mil. Its DDA was $98 Mil. Its Change In Working Capital was $302 Mil. Its cash flow from deferred tax was $-15 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $39 Mil. And its Cash Flow from Others was $4 Mil. In all, Estee Lauder Cos Inc's Cash Flow from Operations for the three months ended in Dec. 2014 was $866 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.

Estee Lauder Cos Inc's Cash Flow from Operations for the fiscal year that ended in Jun. 2014 is calculated as:

Estee Lauder Cos Inc's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Estee Lauder Cos Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 387 (Mar. 2014 ) + 365.8 (Jun. 2014 ) + 127.7 (Sep. 2014 ) + 866 (Dec. 2014 ) = $1,747 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.

Estee Lauder Cos Inc's net income from continuing operations for the three months ended in Dec. 2014 was $438 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

Estee Lauder Cos Inc's depreciation, depletion and amortization for the three months ended in Dec. 2014 was $98 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.

Estee Lauder Cos Inc's change in working capital for the three months ended in Dec. 2014 was $302 Mil. It means Estee Lauder Cos Inc's working capital increased by $302 Mil from Sep. 2014 to Dec. 2014 .

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

Estee Lauder Cos Inc's cash flow from deferred tax for the three months ended in Dec. 2014 was $-15 Mil.

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

Estee Lauder Cos Inc's cash flow from discontinued operations for the three months ended in Dec. 2014 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.

Estee Lauder Cos Inc's stock based compensation for the three months ended in Dec. 2014 was $39 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).

Estee Lauder Cos Inc's cash flow from others for the three months ended in Dec. 2014 was $4 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.

Estee Lauder Cos Inc Annual Data

Jun05Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14
NetIncomeFromContinuingOperations 4062444494742274827048611,0241,209
CF_DDA 197198207251254264294296337385
ChangeInWorkingCapital -248224-65-3205157-34-58-208-195
CF_DeferredTax 105-7410-116-108-25-25-22-76-56
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00047525795125146153
Cash Flow from Others 1811860376721-8-75441
Cash Flow from Operations 4787106626906969571,0271,1271,2261,535

Estee Lauder Cos Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 30044917996302435214258229438
CF_DDA 7879909089969610510198
ChangeInWorkingCapital -542244189-397179221-253302
CF_DeferredTax -19-4-21-33-235-15-23-18-15
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 55343027563930286239
Cash Flow from Others 4-230233-041-374
Cash Flow from Operations -12578027929230753387366128866
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