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Cash Flow from Operations
\$493 Mil (TTM As of Nov. 2016)

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 Nov. 2016, Rite Aid Corp's Net Income From Continuing Operations was \$15 Mil. Its DDA was \$143 Mil. Its Change In Working Capital was \$-44 Mil. Its cash flow from deferred tax was \$4 Mil. Its Cash Flow from Discontinued Operations was \$0 Mil. Its Stock Based Compensation was \$13 Mil. And its Cash Flow from Others was \$21 Mil. In all, Rite Aid Corp's Cash Flow from Operations for the three months ended in Nov. 2016 was \$153 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.

Rite Aid Corp's Cash Flow from Operations for the fiscal year that ended in Feb. 2016 is calculated as:

 Cash Flow from Operations (A: Feb. 2016 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 165.465 + 509.212 + 132.079 + 79.488 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 37.95 + 73.208 = 997

Rite Aid Corp's Cash Flow from Operations for the quarter that ended in Nov. 2016 is

 Cash Flow from Operations (Q: Nov. 2016 ) = Net Income From Continuing Operations + DDA + Change In Working Capital + Deferred Tax = 15.01 + 143.245 + -43.86 + 4.167 + Cash Flow from Discontinued Operations + Stock Based Compensation + Cash Flow from Others + 0 + 13.07 + 20.955 = 153

Rite Aid Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2016 was 327.865 (Feb. 2016 ) + 159.944 (May. 2016 ) + -147.078 (Aug. 2016 ) + 152.587 (Nov. 2016 ) = \$493 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.

Rite Aid Corp's net income from continuing operations for the three months ended in Nov. 2016 was \$15 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

Rite Aid Corp's depreciation, depletion and amortization for the three months ended in Nov. 2016 was \$143 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.

Rite Aid Corp's change in working capital for the three months ended in Nov. 2016 was \$-44 Mil. It means Rite Aid Corp's working capital declined by \$44 Mil from Aug. 2016 to Nov. 2016 .

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

Rite Aid Corp's cash flow from deferred tax for the three months ended in Nov. 2016 was \$4 Mil.

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

Rite Aid Corp's cash flow from discontinued operations for the three months ended in Nov. 2016 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.

Rite Aid Corp's stock based compensation for the three months ended in Nov. 2016 was \$13 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).

Rite Aid Corp's cash flow from others for the three months ended in Nov. 2016 was \$21 Mil.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Rite Aid Corp Annual Data

 Feb07 Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 NetIncomeFromContinuingOperations 27 -1,079 -2,915 -507 -555 -369 118 249 2,109 165 CF_DDA 270 472 586 534 506 441 414 404 417 509 ChangeInWorkingCapital -97 -288 10 -651 151 -135 223 -124 -170 132 CF_DeferredTax -13 805 308 0 0 0 0 0 -1,726 79 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 0 0 31 24 17 16 18 16 23 38 Cash Flow from Others 123 169 2,340 275 278 314 47 156 -4 73 Cash Flow from Operations 309 79 360 -325 396 267 820 702 649 997

Rite Aid Corp Quarterly Data

 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 NetIncomeFromContinuingOperations 128 105 1,835 19 21 60 66 -5 15 15 CF_DDA 101 105 107 110 128 136 135 139 142 143 ChangeInWorkingCapital -103 -132 -30 214 -207 57 68 1 -343 -44 CF_DeferredTax 0 0 0 10 -8 49 29 -6 8 4 Cash Flow from Disc. Op. 0 0 0 0 0 0 0 0 0 0 Stock Based Compensation 6 7 6 7 9 10 11 11 13 13 Cash Flow from Others -10 28 -1,744 8 31 16 18 20 19 21 Cash Flow from Operations 122 112 175 368 -26 328 328 160 -147 153
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