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Starbucks Corp (FRA:SRB)
Cash Flow from Operations
€2,659 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, Starbucks Corp's Net Income From Continuing Operations was €798 Mil. Its DDA was €175 Mil. Its Change In Working Capital was €412 Mil. Its cash flow from deferred tax was €81 Mil. Its Cash Flow from Discontinued Operations was €0 Mil. Its Stock Based Compensation was €42 Mil. And its Cash Flow from Others was €-353 Mil. In all, Starbucks Corp's Cash Flow from Operations for the three months ended in Dec. 2014 was €1,156 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.

Starbucks Corp's Cash Flow from Operations for the fiscal year that ended in Sep. 2014 is calculated as:

Cash Flow from Operations(A: Sep. 2014 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=1604.11171451+580.605120248+-1714.35221102+7.91311093871
+Cash Flow from Discontinued Operations+Stock Based Compensation+Cash Flow from Others
+0+142.125678821+-148.875096974
=472

Starbucks Corp's Cash Flow from Operations for the quarter that ended in Dec. 2014 is

Cash Flow from Operations(Q: Dec. 2014 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=798.459042985+175.425790754+411.759935118+81.103000811
+Cash Flow from Discontinued Operations+Stock Based Compensation+Cash Flow from Others
+0+42.0924574209+-352.96025953
=1,156

Starbucks Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2014 was 302.530730296 (Mar. 2014 ) + 625.5334805 (Jun. 2014 ) + 575.01939488 (Sep. 2014 ) + 1155.87996756 (Dec. 2014 ) = €2,659 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.

Starbucks Corp's net income from continuing operations for the three months ended in Dec. 2014 was €798 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

Starbucks Corp's depreciation, depletion and amortization for the three months ended in Dec. 2014 was €175 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.

Starbucks Corp's change in working capital for the three months ended in Dec. 2014 was €412 Mil. It means Starbucks Corp's working capital increased by €412 Mil from Sep. 2014 to Dec. 2014 .

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

Starbucks Corp's cash flow from deferred tax for the three months ended in Dec. 2014 was €81 Mil.

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

Starbucks Corp'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.

Starbucks Corp's stock based compensation for the three months ended in Dec. 2014 was €42 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).

Starbucks Corp's cash flow from others for the three months ended in Dec. 2014 was €-353 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.

Starbucks Corp Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
NetIncomeFromContinuingOperations 4054444842202697239071,07471,604
CF_DDA 309326354421386413400450491581
ChangeInWorkingCapital -231741155315883-256-313550-1,714
CF_DeferredTax -26-66-27-82-48-327747-7838
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 000525787106119107142
Cash Flow from Others 91123221313127-62-201,807-149
Cash Flow from Operations 7558909578779531,3001,1721,3582,179472

Starbucks Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
NetIncomeFromContinuingOperations 279330302317-923394309377456798
CF_DDA 119120125122132131133140151175
ChangeInWorkingCapital 34329-17346350-1,554-21870100412
CF_DeferredTax 2113-188-786260-3-1781
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 30292626273532383142
Cash Flow from Others 2-5-25-151,852-54474-146-353
Cash Flow from Operations 484813236504652-1,0223036265751,156
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