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CarMax Inc (NYSE:KMX)
Cash Flow from Operations
$-149 Mil (TTM As of Feb. 2016)

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 Feb. 2016, CarMax Inc's Net Income From Continuing Operations was $141 Mil. Its DDA was $37 Mil. Its Change In Working Capital was $-34 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $6 Mil. And its Cash Flow from Others was $83 Mil. In all, CarMax Inc's Cash Flow from Operations for the three months ended in Feb. 2016 was $233 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.

CarMax Inc's Cash Flow from Operations for the fiscal year that ended in Feb. 2016 is calculated as:

CarMax Inc's Cash Flow from Operations for the quarter that ended in Feb. 2016 is

CarMax Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2016 was 117.554 (May. 2015 ) + -202.298 (Aug. 2015 ) + -296.835 (Nov. 2015 ) + 232.686 (Feb. 2016 ) = $-149 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.

CarMax Inc's net income from continuing operations for the three months ended in Feb. 2016 was $141 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

CarMax Inc's depreciation, depletion and amortization for the three months ended in Feb. 2016 was $37 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.

CarMax Inc's change in working capital for the three months ended in Feb. 2016 was $-34 Mil. It means CarMax Inc's working capital declined by $34 Mil from Nov. 2015 to Feb. 2016 .

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

CarMax Inc's cash flow from deferred tax for the three months ended in Feb. 2016 was $0 Mil.

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

CarMax Inc's cash flow from discontinued operations for the three months ended in Feb. 2016 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.

CarMax Inc's stock based compensation for the three months ended in Feb. 2016 was $6 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).

CarMax Inc's cash flow from others for the three months ended in Feb. 2016 was $83 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.

CarMax Inc Annual Data

Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16
NetIncomeFromContinuingOperations 19918259282381414434493597623
CF_DDA 35475558598395102115137
ChangeInWorkingCapital -119-160146-360-549-645-1,432-1,409-1,915-1,169
CF_DeferredTax -14-24-423019-14-17-417
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0333538444862668251
Cash Flow from Others 371112293958152157191
Cash Flow from Operations 1378026550-17-62-778-613-968-149

CarMax Inc Quarterly Data

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
NetIncomeFromContinuingOperations 99170155130143182172128141175
CF_DDA 28272829303233353741
ChangeInWorkingCapital -312-460-464-561-431-164-456-515-34-215
CF_DeferredTax -13000000007
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 1215221925231012631
Cash Flow from Others 66383134504438438346
Cash Flow from Operations -120-209-228-348-184118-202-29723385
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