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Tiffany & Co (NYSE:TIF)
Cash Flow from Operations
$615 Mil (TTM As of Jan. 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 Jan. 2015, Tiffany & Co's Net Income From Continuing Operations was $196 Mil. Its DDA was $49 Mil. Its Change In Working Capital was $146 Mil. Its cash flow from deferred tax was $21 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $5 Mil. And its Cash Flow from Others was $20 Mil. In all, Tiffany & Co's Cash Flow from Operations for the three months ended in Jan. 2015 was $437 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.

Tiffany & Co's Cash Flow from Operations for the fiscal year that ended in Jan. 2015 is calculated as:

Tiffany & Co's Cash Flow from Operations for the quarter that ended in Jan. 2015 is

Tiffany & Co Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2015 was 76.616 (Apr. 2014 ) + 76.18 (Jul. 2014 ) + 24.983 (Oct. 2014 ) + 437.338 (Jan. 2015 ) = $615 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.

Tiffany & Co's net income from continuing operations for the three months ended in Jan. 2015 was $196 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

Tiffany & Co's depreciation, depletion and amortization for the three months ended in Jan. 2015 was $49 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.

Tiffany & Co's change in working capital for the three months ended in Jan. 2015 was $146 Mil. It means Tiffany & Co's working capital increased by $146 Mil from Oct. 2014 to Jan. 2015 .

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

Tiffany & Co's cash flow from deferred tax for the three months ended in Jan. 2015 was $21 Mil.

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

Tiffany & Co's cash flow from discontinued operations for the three months ended in Jan. 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.

Tiffany & Co's stock based compensation for the three months ended in Jan. 2015 was $5 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).

Tiffany & Co's cash flow from others for the three months ended in Jan. 2015 was $20 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.

Tiffany & Co Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
NetIncomeFromContinuingOperations 255273323232266368439416181484
CF_DDA 109115128136139148146164181194
ChangeInWorkingCapital -77-231-45-406229-216-419-315-268-177
CF_DeferredTax -5813-7615-15-60-51-19-2838
Cash Flow from Disc. Op. 0000-600000
Stock Based Compensation 00022242530273226
Cash Flow from Others 346355134453365565650
Cash Flow from Operations 263234385133681299211328155615

Tiffany & Co Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
NetIncomeFromContinuingOperations 631808410795-10412612438196
CF_DDA 41434443464950474749
ChangeInWorkingCapital -5063-141-49-74-4-127-117-79146
CF_DeferredTax -25-6-2-7-12137-321
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 7478897785
Cash Flow from Others 201215111812981320
Cash Flow from Operations 79307211885-50777625437
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