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The Valspar Corp (NYSE:VAL)
Cash Flow from Operations
$483 Mil (TTM As of Oct. 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 Oct. 2016, The Valspar Corp's Net Income From Continuing Operations was $104 Mil. Its DDA was $27 Mil. Its Change In Working Capital was $141 Mil. Its cash flow from deferred tax was $0 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $7 Mil. And its Cash Flow from Others was $-47 Mil. In all, The Valspar Corp's Cash Flow from Operations for the three months ended in Oct. 2016 was $232 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.

The Valspar Corp's Cash Flow from Operations for the fiscal year that ended in Oct. 2016 is calculated as:

The Valspar Corp's Cash Flow from Operations for the quarter that ended in Oct. 2016 is

The Valspar Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2016 was 20.489 (Jan. 2016 ) + 16.486 (Apr. 2016 ) + 213.428 (Jul. 2016 ) + 232.309 (Oct. 2016 ) = $483 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.

The Valspar Corp's net income from continuing operations for the three months ended in Oct. 2016 was $104 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

The Valspar Corp's depreciation, depletion and amortization for the three months ended in Oct. 2016 was $27 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.

The Valspar Corp's change in working capital for the three months ended in Oct. 2016 was $141 Mil. It means The Valspar Corp's working capital increased by $141 Mil from Jul. 2016 to Oct. 2016 .

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

The Valspar Corp's cash flow from deferred tax for the three months ended in Oct. 2016 was $0 Mil.

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

The Valspar Corp's cash flow from discontinued operations for the three months ended in Oct. 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.

The Valspar Corp's stock based compensation for the three months ended in Oct. 2016 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).

The Valspar Corp's cash flow from others for the three months ended in Oct. 2016 was $-47 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 local exchange's currency.

The Valspar Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
NetIncomeFromContinuingOperations 172151160222-139292289345400353
CF_DDA 728183819894881019398
ChangeInWorkingCapital -734846-30-55-496-127-6948
CF_DeferredTax 3-7183-3612-13-2-3-50
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0999102323281530
Cash Flow from Others 17-1720-20413-2452-523
Cash Flow from Operations 191264338266291349399347383483

The Valspar Corp Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
NetIncomeFromContinuingOperations 98108104901031025280117104
CF_DDA 22272422232523252327
ChangeInWorkingCapital 4238-102-1072137-56-10164141
CF_DeferredTax 0000000000
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 414342541267
Cash Flow from Others -38-53-401-303-47
Cash Flow from Operations 162196-2361302712016213232
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