Tiffany Cash Flow

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TIFFANY & COMPANY – CASH FLOW ANALYSIS Cash Flows from Operations -Fiscal 2005 (ending 1/31/06) to Fiscal 2006 (ending 1/31/07) In 2005, Tiffany & Company’s net cash reserves increased 205.93 million or 119.7% from the prior year. Tiffany’s reported net cash and cash equivalents of 393.6 million in fiscal 2005 from 187.7 million in fiscal 2004. In addition, net cash from operations in 2005 were 262.7 million, an increase of 100.76% from the prior year. Operating Gains and Decreased Inventories in 2005 Specifically, the components from operating cash flows that contributed to this increase were operating gains and decreases in inventories from the prior year. Regarding operating gains and losses, in 2005 Tiffany realized gains of 33.8 million versus 150.7 million in losses in 2004. However, more importantly, Tiffany & Co. decreased inventories in fiscal 2005 from 175.4 million to 43.6 million. This significant reduction in inventory expense within its cash flow operations aided in Tiffany’s substantial increase in cash reserves for fiscal 2005. Increased Inventories and Operating Losses in 2006 In comparison, Tiffany’s net cash reserves in 2006 decreased to 176.5 million from 393.6 in the prior year. The company’s net cash from operations also decreased from 262.69 million to 233.58 million in 2005, a difference of 29.1 million. This decrease in operational cash flow was largely attributed to a significant increase in inventories to 164.41 million from 43.63 million. In addition, Tiffany posted operational losses of 12.03 million and increased prepaid expenses of 16.34 million in 2006. However, the company effectively managed its accounts payables for the year at 17.79 million, a significant change from the prior year. In addition, Tiffany increased ‘other non-cash’ items within its operations to 67.01 million. Cash Flows
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