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The Estee Lauder Companies Inc (NYSE:EL)
Cash Flow from Operations
$1,912 Mil (TTM As of Dec. 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 Dec. 2015, The Estee Lauder Companies Inc's Net Income From Continuing Operations was $448 Mil. Its DDA was $104 Mil. Its Change In Working Capital was $348 Mil. Its cash flow from deferred tax was $-11 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $43 Mil. And its Cash Flow from Others was $23 Mil. In all, The Estee Lauder Companies Inc's Cash Flow from Operations for the three months ended in Dec. 2015 was $954 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.

The Estee Lauder Companies Inc's Cash Flow from Operations for the fiscal year that ended in Jun. 2015 is calculated as:

The Estee Lauder Companies Inc's Cash Flow from Operations for the quarter that ended in Dec. 2015 is

The Estee Lauder Companies Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 391.3 (Mar. 2015 ) + 558.3 (Jun. 2015 ) + 8.2 (Sep. 2015 ) + 954.1 (Dec. 2015 ) = $1,912 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.

The Estee Lauder Companies Inc's net income from continuing operations for the three months ended in Dec. 2015 was $448 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

The Estee Lauder Companies Inc's depreciation, depletion and amortization for the three months ended in Dec. 2015 was $104 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.

The Estee Lauder Companies Inc's change in working capital for the three months ended in Dec. 2015 was $348 Mil. It means The Estee Lauder Companies Inc's working capital increased by $348 Mil from Sep. 2015 to Dec. 2015 .

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

The Estee Lauder Companies Inc's cash flow from deferred tax for the three months ended in Dec. 2015 was $-11 Mil.

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

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

The Estee Lauder Companies Inc's stock based compensation for the three months ended in Dec. 2015 was $43 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).

The Estee Lauder Companies Inc's cash flow from others for the three months ended in Dec. 2015 was $23 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.

The Estee Lauder Companies Inc Annual Data

Jun06Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15
NetIncomeFromContinuingOperations 2444494842274827048611,0241,2091,093
CF_DDA 198207251254264294296337385409
ChangeInWorkingCapital 224-65-3205157-34-58-208-195348
CF_DeferredTax -7410-116-108-25-25-22-76-56-53
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0047525795125146153165
Cash Flow from Others 11860276721-8-75441-20
Cash Flow from Operations 7106626906969571,0271,1271,2261,5351,943

The Estee Lauder Companies Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
NetIncomeFromContinuingOperations 302435214258229438273154311448
CF_DDA 8996961051019810011198104
ChangeInWorkingCapital -397179221-25330218281-463348
CF_DeferredTax -235-15-23-18-15-234-21-11
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 56393028623933316943
Cash Flow from Others 3-041-374-9-221423
Cash Flow from Operations 307533873661288663915588954
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