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Forest Laboratories, Inc. (NYSE:FRX)
Cash Flow from Operations
$376 Mil (TTM As of Dec. 2013)

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. 2013, Forest Laboratories, Inc.'s Net Income From Continuing Operations was $18 Mil. Its DDA was $50 Mil. Its Change In Working Capital was $118 Mil. Its cash flow from deferred tax was $-7 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $25 Mil. In all, Forest Laboratories, Inc.'s Cash Flow from Operations for the three months ended in Dec. 2013 was $203 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.

Forest Laboratories, Inc.'s Cash Flow from Operations for the fiscal year that ended in Mar. 2013 is calculated as:

Forest Laboratories, Inc.'s Cash Flow from Operations for the quarter that ended in Dec. 2013 is

Forest Laboratories, Inc. Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 44.813 (Mar. 2013 ) + -28.196 (Jun. 2013 ) + 156.134 (Sep. 2013 ) + 202.934 (Dec. 2013 ) = $376 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.

Forest Laboratories, Inc.'s net income from continuing operations for the three months ended in Dec. 2013 was $18 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

Forest Laboratories, Inc.'s depreciation, depletion and amortization for the three months ended in Dec. 2013 was $50 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.

Forest Laboratories, Inc.'s change in working capital for the three months ended in Dec. 2013 was $118 Mil. It means Forest Laboratories, Inc.'s working capital increased by $118 Mil from Sep. 2013 to Dec. 2013 .

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

Forest Laboratories, Inc.'s cash flow from deferred tax for the three months ended in Dec. 2013 was $-7 Mil.

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

Forest Laboratories, Inc.'s cash flow from discontinued operations for the three months ended in Dec. 2013 was $0 Mil.

6. 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).

Forest Laboratories, Inc.'s cash flow from others for the three months ended in Dec. 2013 was $25 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, 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.

Forest Laboratories, Inc. Annual Data

Mar04Mar05Mar06Mar07Mar08Mar09Mar10Mar11Mar12Mar13
NetIncomeFromContinuingOperations 7368397094549667666821,047979-32
CF_DDA 60579310192978773122147
ChangeInWorkingCapital -208-76-208377115190219-81317-18
CF_DeferredTax -1153-33-85-21-27-1644-39-27
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 51-1140424449656464
Cash Flow from Operations 6288715618871,1931,0701,0201,1481,442135

Forest Laboratories, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
NetIncomeFromContinuingOperations 2507861935521-15445237018
CF_DDA 32273535363739464750
ChangeInWorkingCapital 33-3209-18-40101-62-77-11118
CF_DeferredTax -10-13-85-9-3513-368-7
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 7-485131318249154225
Cash Flow from Operations 3113124419126-2645-28156203
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