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Staples Inc (NAS:SPLS)
Cash Flow from Operations
$1,141 Mil (TTM As of Oct. 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 Oct. 2014, Staples Inc's Net Income From Continuing Operations was $217 Mil. Its DDA was $117 Mil. Its Change In Working Capital was $244 Mil. Its cash flow from deferred tax was $-9 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $36 Mil. In all, Staples Inc's Cash Flow from Operations for the three months ended in Oct. 2014 was $605 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.

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

Staples Inc's Cash Flow from Operations for the quarter that ended in Oct. 2014 is

Staples Inc Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2014 was 233.147 (Jan. 2014 ) + 359.851 (Apr. 2014 ) + -56.273 (Jul. 2014 ) + 604.6 (Oct. 2014 ) = $1,141 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.

Staples Inc's net income from continuing operations for the three months ended in Oct. 2014 was $217 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

Staples Inc's depreciation, depletion and amortization for the three months ended in Oct. 2014 was $117 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.

Staples Inc's change in working capital for the three months ended in Oct. 2014 was $244 Mil. It means Staples Inc's working capital increased by $244 Mil from Jul. 2014 to Oct. 2014 .

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

Staples Inc's cash flow from deferred tax for the three months ended in Oct. 2014 was $-9 Mil.

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

Staples Inc's cash flow from discontinued operations for the three months ended in Oct. 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).

Staples Inc's cash flow from others for the three months ended in Oct. 2014 was $36 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.

Staples Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
NetIncomeFromContinuingOperations 665784974996814757889984-211620
CF_DDA 279304339389549552499482487458
ChangeInWorkingCapital 93120-215-174-61716-266-51-188-230
CF_DeferredTax 15-96-65-933-901737112105
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 86871321603501491521541,019155
Cash Flow from Operations 1,1381,1991,1651,3611,6862,0841,4461,5761,2191,108

Staples Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
NetIncomeFromContinuingOperations 120-596-2111701031352129682217
CF_DDA 115131125114115113116117112117
ChangeInWorkingCapital -149202-4131-244157-174118-275244
CF_DeferredTax -26043882763-7-4-9
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others 2684240825199616362936
Cash Flow from Operations 110639324348-0528233360-56605
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