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Nike, Inc. (NYSE:NKE)
Cash Flow from Operations
$3,018 Mil (TTM As of Feb. 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 Feb. 2014, Nike, Inc.'s Net Income From Continuing Operations was $685 Mil. Its DDA was $180 Mil. Its Change In Working Capital was $-75 Mil. Its cash flow from deferred tax was $-79 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 Feb. 2014 was $754 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. 2013 is calculated as:

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

Nike, Inc. Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2014 was 1335 (May. 2013 ) + 597 (Aug. 2013 ) + 332 (Nov. 2013 ) + 754 (Feb. 2014 ) = $3,018 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. 2014 was $685 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. 2014 was $180 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. 2014 was $-75 Mil. It means Nike, Inc.'s working capital declined by $75 Mil from Nov. 2013 to Feb. 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 Feb. 2014 was $-79 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. 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 Feb. 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

May04May05May06May07May08May09May10May11May12May13
NetIncomeFromContinuingOperations 9461,2121,3921,4921,8831,4871,9072,1332,2232,485
CF_DDA 314288291270322383396358405513
ChangeInWorkingCapital 193-13-43-65-48-412694-708-799-42
CF_DeferredTax 1921-2634-301-2948-76-6021
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 4763541488057215910513050
Cash Flow from Operations 1,5191,5711,6681,8791,9361,7363,1641,8121,8993,027

Nike, Inc. Quarterly Data

Nov11Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14
NetIncomeFromContinuingOperations 1,114560549567384866668780537685
CF_DDA 871228513712993154153147180
ChangeInWorkingCapital -77-382358-18976-319390-402-397-75
CF_DeferredTax -5-6-53-17-32-77724-1-79
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -609343537153-18646424643
Cash Flow from Operations 5103289745357104471,335597332754
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