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Rite Aid Corp (NYSE:RAD)
Cash Flow from Operations
$777 Mil (TTM As of May. 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 May. 2015, Rite Aid Corp's Net Income From Continuing Operations was $19 Mil. Its DDA was $110 Mil. Its Change In Working Capital was $214 Mil. Its cash flow from deferred tax was $10 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $7 Mil. And its Cash Flow from Others was $8 Mil. In all, Rite Aid Corp's Cash Flow from Operations for the three months ended in May. 2015 was $368 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. 2015 is calculated as:

Rite Aid Corp's Cash Flow from Operations for the quarter that ended in May. 2015 is

Rite Aid Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2015 was 122.483 (Aug. 2014 ) + 111.728 (Nov. 2014 ) + 175 (Feb. 2015 ) + 367.835 (May. 2015 ) = $777 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.

Rite Aid Corp's net income from continuing operations for the three months ended in May. 2015 was $19 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 May. 2015 was $110 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 May. 2015 was $214 Mil. It means Rite Aid Corp's working capital increased by $214 Mil from Feb. 2015 to May. 2015 .

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 May. 2015 was $10 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 May. 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.

Rite Aid Corp's stock based compensation for the three months ended in May. 2015 was $7 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 May. 2015 was $8 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.

Rite Aid Corp Annual Data

Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15
NetIncomeFromContinuingOperations 1,27327-1,079-2,915-507-555-3691182492,109
CF_DDA 250270472586534506441414404417
ChangeInWorkingCapital -45-97-28810-651151-135223-124-170
CF_DeferredTax -1,212-1380530800000-1,726
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 00031241716181623
Cash Flow from Others 1511231692,34027527831447156-4
Cash Flow from Operations 41730979360-325396267820702649

Rite Aid Corp Quarterly Data

Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15May15
NetIncomeFromContinuingOperations 12390337255411281051,83519
CF_DDA 10310199101102103101105107110
ChangeInWorkingCapital 3-28-15158-296-103-132-30214
CF_DeferredTax 00000000010
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 5444446767
Cash Flow from Others -141895935-5-1028-1,7448
Cash Flow from Operations 22018479244194240122112175368
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