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Sears Holdings Corporation (NAS:SHLD)
Cash Flow from Operations
$-1,109 Mil (TTM As of Jan. 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 Jan. 2014, Sears Holdings Corporation's Net Income From Continuing Operations was $-150 Mil. Its DDA was $173 Mil. Its Change In Working Capital was $349 Mil. Its cash flow from deferred tax was $720 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $-529 Mil. In all, Sears Holdings Corporation's Cash Flow from Operations for the three months ended in Jan. 2014 was $563 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.

Sears Holdings Corporation's Cash Flow from Operations for the fiscal year that ended in Jan. 2014 is calculated as:

Sears Holdings Corporation's Cash Flow from Operations for the quarter that ended in Jan. 2014 is

Sears Holdings Corporation Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2014 was -713 (Apr. 2013 ) + -2 (Jul. 2013 ) + -957 (Oct. 2013 ) + 563 (Jan. 2014 ) = $-1,109 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.

Sears Holdings Corporation's net income from continuing operations for the three months ended in Jan. 2014 was $-150 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

Sears Holdings Corporation's depreciation, depletion and amortization for the three months ended in Jan. 2014 was $173 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.

Sears Holdings Corporation's change in working capital for the three months ended in Jan. 2014 was $349 Mil. It means Sears Holdings Corporation's working capital increased by $349 Mil from Oct. 2013 to Jan. 2014 .

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

Sears Holdings Corporation's cash flow from deferred tax for the three months ended in Jan. 2014 was $720 Mil.

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

Sears Holdings Corporation's cash flow from discontinued operations for the three months ended in Jan. 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).

Sears Holdings Corporation's cash flow from others for the three months ended in Jan. 2014 was $-529 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.

Sears Holdings Corporation Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
NetIncomeFromContinuingOperations 1,1068571,49282699297139-3,120-1,054-1,116
CF_DDA 699421,1431,049981926869853830732
ChangeInWorkingCapital 277280-1,296-203-47567-545-33-18-328
CF_DeferredTax 59752263-840001,798237720
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -98162-174-41-41-283-340227-298-1,117
Cash Flow from Operations 1,0682,1931,4281,5479921,507123-275-303-1,109

Sears Holdings Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
NetIncomeFromContinuingOperations -414-2,387194-133-498-617-292-127-547-150
CF_DDA 210212202212211205191187181173
ChangeInWorkingCapital -45082043-22-567528-517266-426349
CF_DeferredTax 01,798000237000720
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -192590-498-70-355625-95-328-165-529
Cash Flow from Operations -8461,033-59-13-1,209978-713-2-957563
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