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Nike Inc (NYSE:NKE)
Cash Flow from Operations
$2,973 Mil (TTM As of Aug. 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 Aug. 2014, Nike Inc's Net Income From Continuing Operations was $962 Mil. Its DDA was $113 Mil. Its Change In Working Capital was $-565 Mil. Its cash flow from deferred tax was $35 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $43 Mil. In all, Nike Inc's Cash Flow from Operations for the three months ended in Aug. 2014 was $588 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.

Nike Inc's Cash Flow from Operations for the fiscal year that ended in May. 2014 is calculated as:

Nike Inc's Cash Flow from Operations for the quarter that ended in Aug. 2014 is

Nike Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2014 was 311 (Nov. 2013 ) + 754 (Feb. 2014 ) + 1320 (May. 2014 ) + 588 (Aug. 2014 ) = $2,973 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.

Nike Inc's net income from continuing operations for the three months ended in Aug. 2014 was $962 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

Nike Inc's depreciation, depletion and amortization for the three months ended in Aug. 2014 was $113 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.

Nike Inc's change in working capital for the three months ended in Aug. 2014 was $-565 Mil. It means Nike Inc's working capital declined by $565 Mil from May. 2014 to Aug. 2014 .

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

Nike Inc's cash flow from deferred tax for the three months ended in Aug. 2014 was $35 Mil.

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

Nike Inc's cash flow from discontinued operations for the three months ended in Aug. 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).

Nike Inc's cash flow from others for the three months ended in Aug. 2014 was $43 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.

Nike Inc Annual Data

May05May06May07May08May09May10May11May12May13May14
NetIncomeFromContinuingOperations 1,2121,3921,4921,8831,4871,9072,1332,2232,4722,693
CF_DDA 288291270322383396358405504632
ChangeInWorkingCapital -13-43-65-48-412694-708-799-78-488
CF_DeferredTax 21-2634-301-2948-76-6020-11
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 63541488057215910513050177
Cash Flow from Operations 1,5711,6681,8791,9361,7363,1641,8121,8992,9683,003

Nike Inc Quarterly Data

May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14
NetIncomeFromContinuingOperations 549567384866655779538685691962
CF_DDA 8513712993145152148180152113
ChangeInWorkingCapital 358-18976-319354-379-420-75386-565
CF_DeferredTax -53-17-32-77624-1-794535
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 3537153-186464246434643
Cash Flow from Operations 9745357104471,2766183117541,320588
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