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Lowe's Companies Inc (NYSE:LOW)
Cash Flow from Operations
$4,929 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, Lowe's Companies Inc's Net Income From Continuing Operations was $450 Mil. Its DDA was $387 Mil. Its Change In Working Capital was $-715 Mil. Its cash flow from deferred tax was $77 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $35 Mil. And its Cash Flow from Others was $11 Mil. In all, Lowe's Companies Inc's Cash Flow from Operations for the three months ended in Jan. 2015 was $245 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.

Lowe's Companies Inc's Cash Flow from Operations for the fiscal year that ended in Jan. 2015 is calculated as:

Lowe's Companies Inc's Cash Flow from Operations for the quarter that ended in Jan. 2015 is

Lowe's Companies Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2015 was 1994 (Apr. 2014 ) + 1929 (Jul. 2014 ) + 761 (Oct. 2014 ) + 245 (Jan. 2015 ) = $4,929 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.

Lowe's Companies Inc's net income from continuing operations for the three months ended in Jan. 2015 was $450 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

Lowe's Companies Inc's depreciation, depletion and amortization for the three months ended in Jan. 2015 was $387 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.

Lowe's Companies Inc's change in working capital for the three months ended in Jan. 2015 was $-715 Mil. It means Lowe's Companies Inc's working capital declined by $715 Mil from Oct. 2014 to Jan. 2015 .

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

Lowe's Companies Inc's cash flow from deferred tax for the three months ended in Jan. 2015 was $77 Mil.

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

Lowe's Companies 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.

Lowe's Companies Inc's stock based compensation for the three months ended in Jan. 2015 was $35 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).

Lowe's Companies Inc's cash flow from others for the three months ended in Jan. 2015 was $11 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.

Lowe's Companies Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
NetIncomeFromContinuingOperations 2,7653,1052,8092,1951,7832,0101,8391,9592,2862,698
CF_DDA 1,0511,2371,4641,6671,7331,6841,5791,6231,5621,586
ChangeInWorkingCapital -4481-78-13666930289209568
CF_DeferredTax -37-6269-123-13354-140-162-124
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00095102115107100100119
Cash Flow from Others 107851509719310746813111682
Cash Flow from Operations 3,8424,5024,3474,1224,0543,8524,3493,7624,1114,929

Lowe's Companies Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
NetIncomeFromContinuingOperations 3952895409424983066241,039585450
CF_DDA 396438376391400395398400401387
ChangeInWorkingCapital -88-4951,06416-384-487970516-203-715
CF_DeferredTax -54-27-26-30-61-45-67-70-6477
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 21251826263028253135
Cash Flow from Others 42242019245341191111
Cash Flow from Operations 7122541,9921,3645032521,9941,929761245
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