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Nike Inc (NYSE:NKE)
Cash Flow from Operations
$4,656 Mil (TTM As of Feb. 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 Feb. 2015, Nike Inc's Net Income From Continuing Operations was $791 Mil. Its DDA was $234 Mil. Its Change In Working Capital was $625 Mil. Its cash flow from deferred tax was $-6 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $48 Mil. And its Cash Flow from Others was $411 Mil. In all, Nike Inc's Cash Flow from Operations for the three months ended in Feb. 2015 was $2,103 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 Feb. 2015 is

Nike Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2015 was 1318 (May. 2014 ) + 588 (Aug. 2014 ) + 647 (Nov. 2014 ) + 2103 (Feb. 2015 ) = $4,656 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 Feb. 2015 was $791 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 Feb. 2015 was $234 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 Feb. 2015 was $625 Mil. It means Nike Inc's working capital increased by $625 Mil from Nov. 2014 to Feb. 2015 .

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 Feb. 2015 was $-6 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 Feb. 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.

Nike Inc's stock based compensation for the three months ended in Feb. 2015 was $48 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).

Nike Inc's cash flow from others for the three months ended in Feb. 2015 was $411 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.

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
Stock Based Compensation 000141171159105130174177
Cash Flow from Others 6354148-61401000-1240
Cash Flow from Operations 1,5711,6681,8791,9361,7363,1641,8121,8992,9683,003

Nike Inc Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
NetIncomeFromContinuingOperations 384866655779534682698962655791
CF_DDA 12993145152145134201113134234
ChangeInWorkingCapital 76-319354-379-395-101387-565-205625
CF_DeferredTax -32-776240-80453514-6
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 46454642464346434948
Cash Flow from Others 107-23100059-5900411
Cash Flow from Operations 7104471,2766183307371,3185886472,103
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