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Rite Aid Corp (NYSE:RAD)
Cash Flow from Operations
$226 Mil (TTM As of Feb. 2017)

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 Feb. 2017, Rite Aid Corp's Net Income From Continuing Operations was $-21 Mil. Its DDA was $144 Mil. Its Change In Working Capital was $-63 Mil. Its cash flow from deferred tax was $29 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $-13 Mil. And its Cash Flow from Others was $-15 Mil. In all, Rite Aid Corp's Cash Flow from Operations for the three months ended in Feb. 2017 was $60 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. 2017 is calculated as:

Rite Aid Corp's Cash Flow from Operations for the quarter that ended in Feb. 2017 is

Rite Aid Corp Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2017 was 159.944 (May. 2016 ) + -147.078 (Aug. 2016 ) + 152.587 (Nov. 2016 ) + 60.41 (Feb. 2017 ) = $226 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.

Rite Aid Corp's net income from continuing operations for the three months ended in Feb. 2017 was $-21 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 Feb. 2017 was $144 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 Feb. 2017 was $-63 Mil. It means Rite Aid Corp's working capital declined by $63 Mil from Nov. 2016 to Feb. 2017 .

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 Feb. 2017 was $29 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 Feb. 2017 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 Feb. 2017 was $-13 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 Feb. 2017 was $-15 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.

Rite Aid Corp Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
NetIncomeFromContinuingOperations -1,079-2,915-507-555-3691182492,1091654
CF_DDA 472586534506441414404417509568
ChangeInWorkingCapital -28810-651151-135223-124-170132-449
CF_DeferredTax 80530800000-1,7267935
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0312417161816233823
Cash Flow from Others 1692,34027527831447156-47344
Cash Flow from Operations 79360-325396267820702649997226

Rite Aid Corp Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
NetIncomeFromContinuingOperations 1051,83519216066-51515-21
CF_DDA 105107110128136135139142143144
ChangeInWorkingCapital -132-30214-20757681-343-44-63
CF_DeferredTax 0010-84929-68429
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 76791011111313-13
Cash Flow from Others 28-1,7448311618201921-15
Cash Flow from Operations 112175368-26328328160-14715360
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