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JC Penney Co Inc (NYSE:JCP)
Cash Flow from Operations
$1,203 Mil (TTM As of Jan. 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 Jan. 2015, JC Penney Co Inc's Net Income From Continuing Operations was $-59 Mil. Its DDA was $157 Mil. Its Change In Working Capital was $511 Mil. Its cash flow from deferred tax was $27 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $9 Mil. And its Cash Flow from Others was $48 Mil. In all, JC Penney Co Inc's Cash Flow from Operations for the three months ended in Jan. 2015 was $693 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.

JC Penney Co Inc's Cash Flow from Operations for the fiscal year that ended in Jan. 2014 is calculated as:

JC Penney Co Inc's Cash Flow from Operations for the quarter that ended in Jan. 2015 is

JC Penney Co Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2015 was 137 (Jul. 2014 ) + -320 (Oct. 2014 ) + 693 (Dec. 2014 ) + 693 (Jan. 2015 ) = $1,203 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.

JC Penney Co Inc's net income from continuing operations for the three months ended in Jan. 2015 was $-59 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

JC Penney Co Inc's depreciation, depletion and amortization for the three months ended in Jan. 2015 was $157 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.

JC Penney Co Inc's change in working capital for the three months ended in Jan. 2015 was $511 Mil. It means JC Penney Co Inc's working capital increased by $511 Mil from Dec. 2014 to Jan. 2015 .

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

JC Penney Co Inc's cash flow from deferred tax for the three months ended in Jan. 2015 was $27 Mil.

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

JC Penney Co Inc's cash flow from discontinued operations for the three months ended in Jan. 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.

JC Penney Co Inc's stock based compensation for the three months ended in Jan. 2015 was $9 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).

JC Penney Co Inc's cash flow from others for the three months ended in Jan. 2015 was $48 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.

JC Penney Co Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
NetIncomeFromContinuingOperations 1,0881,1531,111572251378-152-985-1,388-771
CF_DDA 372389426469495511518543601631
ChangeInWorkingCapital -4927-21681388-303141748-785379
CF_DeferredTax -10-63716776126-153-467-1643
Cash Flow from Disc. Op. 0001000000
Stock Based Compensation 00047435346502833
Cash Flow from Others 18-297-106-180320-173420101-106-36
Cash Flow from Operations 1,4191,2661,2521,1571,573592820-10-1,814239

JC Penney Co Inc Quarterly Data

Jul13Oct13Dec13Jan14Apr14Jul14Oct14Dec14Jan15Apr15
NetIncomeFromContinuingOperations -586-4893535-352-172-188-59-59-167
CF_DDA 143161161161158160156157157154
ChangeInWorkingCapital -356-444436436-61164-235511511-213
CF_DeferredTax -25-143939-5-14-52727-11
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 116667989910
Cash Flow from Others 10543-294-294-18-10-5648481
Cash Flow from Operations -708-737383383-271137-320693693-226
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