Switch to:
GuruFocus has detected 4 Warning Signs with Lowe's Companies Inc $LOW.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Lowe's Companies Inc (NYSE:LOW)
Cash Flow from Operations
$5,617 Mil (TTM As of Jan. 2017)

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. 2017, Lowe's Companies Inc's Net Income From Continuing Operations was $663 Mil. Its DDA was $400 Mil. Its Change In Working Capital was $-849 Mil. Its cash flow from deferred tax was $100 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $19 Mil. And its Cash Flow from Others was $15 Mil. In all, Lowe's Companies Inc's Cash Flow from Operations for the three months ended in Jan. 2017 was $348 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. 2017 is calculated as:

Lowe's Companies Inc's Cash Flow from Operations for the quarter that ended in Jan. 2017 is

Lowe's Companies Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2017 was 3220 (Apr. 2016 ) + 1408 (Jul. 2016 ) + 641 (Oct. 2016 ) + 348 (Jan. 2017 ) = $5,617 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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. 2017 was $663 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. 2017 was $400 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. 2017 was $-849 Mil. It means Lowe's Companies Inc's working capital declined by $849 Mil from Oct. 2016 to Jan. 2017 .

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. 2017 was $100 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. 2017 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. 2017 was $19 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. 2017 was $15 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 local exchange's currency.

Lowe's Companies Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
NetIncomeFromContinuingOperations 2,8092,1951,7832,0101,8391,9592,2862,6982,5463,093
CF_DDA 1,4641,6671,7331,6841,5791,6231,5621,5861,5871,590
ChangeInWorkingCapital -78-13666930289209568-22371
CF_DeferredTax 269-123-13354-140-162-124-6828
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 09510211510710010011911790
Cash Flow from Others 1509719310746813111682624445
Cash Flow from Operations 4,3474,1224,0543,8524,3493,7624,1114,9294,7845,617

Lowe's Companies Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
NetIncomeFromContinuingOperations 5854506731,126736118841,167379663
CF_DDA 401387391400401395383395412400
ChangeInWorkingCapital -203-7151,399172-761-8321,862-41-601-849
CF_DeferredTax -6477-38-64-387252-77-47100
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 31352928273325242219
Cash Flow from Others 111124241755914-6047615
Cash Flow from Operations 7612452,4781,6863822383,2201,408641348
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK