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W W Grainger Inc (NYSE:GWW)
Cash Flow from Operations
$909 Mil (TTM As of Sep. 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 Sep. 2014, W W Grainger Inc's Net Income From Continuing Operations was $233 Mil. Its DDA was $54 Mil. Its Change In Working Capital was $31 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 $10 Mil. In all, W W Grainger Inc's Cash Flow from Operations for the three months ended in Sep. 2014 was $334 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.

W W Grainger Inc's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

W W Grainger Inc's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

W W Grainger Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 246.07 (Dec. 2013 ) + 167.518 (Mar. 2014 ) + 160.948 (Jun. 2014 ) + 334.367 (Sep. 2014 ) = $909 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.

W W Grainger Inc's net income from continuing operations for the three months ended in Sep. 2014 was $233 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

W W Grainger Inc's depreciation, depletion and amortization for the three months ended in Sep. 2014 was $54 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.

W W Grainger Inc's change in working capital for the three months ended in Sep. 2014 was $31 Mil. It means W W Grainger Inc's working capital increased by $31 Mil from Jun. 2014 to Sep. 2014 .

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

W W Grainger Inc's cash flow from deferred tax for the three months ended in Sep. 2014 was $7 Mil.

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

W W Grainger Inc's cash flow from discontinued operations for the three months ended in Sep. 2014 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).

W W Grainger Inc's cash flow from others for the three months ended in Sep. 2014 was $10 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.

W W Grainger Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 287346383420475431514666699808
CF_DDA 98109119132140148150149159181
ChangeInWorkingCapital 8-57-100-106-143122-115-129-129-58
CF_DeferredTax -42410-19522-6212-9
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 17112542531153587565
Cash Flow from Operations 406433437469530732596746816986

W W Grainger Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 193158158215221213159219209233
CF_DDA 37404639424554464854
ChangeInWorkingCapital -116129-12-84-748912-108-12531
CF_DeferredTax -2-219-1-0-8-1-3-77
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 2014298221421133610
Cash Flow from Operations 132338240176210354246168161334
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