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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.
Resources Connection (NAS:RGP) Cash Flow from Operations Explanation
For companies reported in indirect method, 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.
Resources Connection's net income from continuing operations for the
three
months ended in May. 2026 was $-16.1 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
Resources Connection's depreciation, depletion and amortization for the
three
months ended in May. 2026 was $2.3 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.
Resources Connection's change in working capital for the
three
months ended in May. 2026 was $9.3 Mil. It means Resources Connection's working capital
increased by $9.3 Mil
from Feb. 2026 to May. 2026 .
4. Deferred Tax:
It is the cash flow generated from deferred tax.
Resources Connection's cash flow from deferred tax for the
three
months ended in May. 2026 was $0.4 Mil.
Resources Connection's cash from discontinued operating Activities for the
three
months ended in May. 2026 was $0.0 Mil.
6. Asset Impairment Charge:
It is the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value.
Resources Connection's asset impairment charge for the
three
months ended in May. 2026 was $0.0 Mil.
7. 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.
Resources Connection's stock based compensation for the
three
months ended in May. 2026 was $3.5 Mil.
8. 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).
Resources Connection's cash flow from others for the
three
months ended in May. 2026 was $2.6 Mil.
Resources Connection Cash Flow from Operations Related Terms
Resources Connection Cash Flow from Operations Historical Data
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The historical data trend for Resources Connection's Cash Flow from Operations can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Resources Connection Cash Flow from Operations Chart
Resources Connection Cash Flow from Operations Calculation
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.
Resources Connection's Cash Flow from Operations for the fiscal year that ended in May. 2026 is calculated as:
Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.4 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Cash Flow from Operations of $1.4 Mil mean?
Resources Connection (RGP) has a Cash Flow from Operations of $1.4 Mil as of May. 2026. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for Resources Connection and its competitors.
Is Resources Connection's Cash Flow from Operations too high?
Resources Connection's current Cash Flow from Operations is $1.4 Mil. Overall, Resources Connection has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Resources Connection's Cash Flow from Operations compare to EGG and GLAI?
Resources Connection's Cash Flow from Operations of $1.4 Mil can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Flow from Operations for a Business Services company?
A good Cash Flow from Operations depends on the Business Services industry context. However, Cash Flow from Operations should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Flow from Operations mean?
A high Cash Flow from Operations can signal that a stock is expensive relative to its fundamentals. Cash Flow from Operations is the amount of cash earned or paid from standard business operations. View historical data for Resources Connection and its competitors. Resources Connection's current Cash Flow from Operations is $1.4 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resources Connection stock overvalued right now?
Based on GuruFocus' analysis, Resources Connection (RGP) is currently considered Possible Value Trap. The stock's GF Value™ is $6.07, compared to a current price of $4.30 — trading 29.2% below its estimated fair value. The current Cash Flow from Operations is $1.4 Mil. Resources Connection's overall GF Score™ is 65/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Flow from Operations calculated?
Cash Flow from Operations is calculated from a company's financial statements. For Resources Connection (RGP), the current Cash Flow from Operations is $1.4 Mil as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Resources Connection (RGP) Overvalued in 2026?
Based on GuruFocus' analysis, Resources Connection stock appears to be undervalued.
The current stock price of $4.30 is trading 29.2% below its estimated GF Value™ of $6.07.
GuruFocus considers Resources Connection to be Possible Value Trap.
Key valuation signals for RGP:
Cash Flow from Operations: $1.4 Mil
GF Value™: $6.07 vs. price of $4.30 (29.2% below fair value)
No single metric tells the full story. See the RGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Resources Connection Inc provides consulting and business initiative support services predominantly through its operative subsidiary, Resources Global Professionals. It has two segments RGP ( Resources Global Professionals.) and Sitrick. The RGP segment is focused on delivering consulting services catering to its client's operational needs and change initiatives utilizing a combination of bench and on-demand, talent. The Sitrick segment provides corporate, financial, transactional, and crisis communication and management services. The company generates a majority of its revenue from the RGP segment. Geographically, it derives its key revenue from North America and the rest from Europe and the Asia Pacific region.
65GF Score
Get the complete analysis for RGP
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