Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
For the
three
months ended in Oct. 2015, Books-A-Millionspent$2.8 Mil on purchasing property, plant, equipment.
It gained$0.0 Mil from selling property, plant, and equipment.
It spent$0.0 Mil on purchasing business.
It gained$0.0 Mil from selling business.
It spent$0.0 Mil on purchasing investments.
It gained$0.0 Mil from selling investments.
It paid$0.0Mil for net Intangibles purchase and sale.
And it paid$0.0 Mil for other investing activities.
In all, Books-A-Millionspent$2.8 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Oct. 2015.
Books-A-Million Cash Flow from Investing Historical Data
The historical data trend for Books-A-Million's Cash Flow from Investing 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.
Books-A-Million Cash Flow from Investing Calculation
Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).
Likewise, if a company buys another company for cash, this will reduce their cash position.
Books-A-Million's Cash Flow from Investing for the fiscal year that ended in Jan. 2015 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-12.2 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.
Books-A-Million (NAS:BAMM) Cash Flow from Investing Explanation
Books-A-Million's purchase of property, plant, equipment for the
three
months ended in Oct. 2015 was $-2.8 Mil. It means Books-A-Million spent $2.8 Mil on purchasing property, plant, equipment.
In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.
In Warren Buffett's definition of Owner's Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
Books-A-Million's sale of property, plant, equipment for the
three
months ended in Oct. 2015 was $0.0 Mil. It means Books-A-Million gained $0.0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Books-A-Million's purchase of business for the
three
months ended in Oct. 2015 was $0.0 Mil. It means Books-A-Million spent $0.0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Books-A-Million's sale of business for the
three
months ended in Oct. 2015 was $0.0 Mil. It means Books-A-Million gained $0.0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Books-A-Million's purchase of investment for the
three
months ended in Oct. 2015 was $0.0 Mil. It means Books-A-Million spent {stock_data.stock.currency_symbol}}0.0 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Books-A-Million's sale of investment for the
three
months ended in Oct. 2015 was $0.0 Mil. It means Books-A-Million gained $0.0 Mil from selling investments.
7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.
Books-A-Million's net Intangibles purchase and sale for the
three
months ended in Oct. 2015 was $0.0 Mil.
It means Books-A-Million paid $0.0 Mil for net Intangibles purchase and sale.
8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.
Books-A-Million's cash from discontinued investing activities for the
three
months ended in Oct. 2015 was 0.0 Mil.
It means Books-A-Million paid $0.0 Mil for discontinued investing activities.
9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.
Books-A-Million's cash from other investing activities for the
three
months ended in Oct. 2015 was $0.0 Mil.
It means Books-A-Million paid $0.0 Mil for other investing activities.
Books-A-Million Cash Flow from Investing Related Terms
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Books-A-Million (Books-A-Million) Business Description
Books-A-Million Inc was founded in 1917, originally incorporated under the laws of the State of Alabama in 1964 and reincorporated in Delaware in September 1992. The Company is a book retailer located in the eastern United States and operates both superstores and traditional bookstores. The Company operates both superstores and traditional bookstores. The first Superstore was opened in 1987 and operates under the names Books-A-Million and Books and Co. and 2nd & Charles. Traditional bookstores are smaller stores operated under the names Bookland, Books-A-Million and BAM. All store formats generally offer a selection of sellers and other hardcover and paperback books, magazines, toys, games, electronics and gifts. In addition to these retail store formats, it offers its products over the internet at Booksamillion.com. Its retail operations also include the operation of Yogurt Mountain Holding, LLC, a retailer and franchisor of self-serve frozen yogurt stores. It also develops and manages commercial real estate investments through its subsidiary, Preferred Growth Properties, LLC. The Company operates in three reportable operating segments: Retail trade; Electronic commerce trade; and Real estate development and management. In the retail trade segment, it is engaged in the retail sale of books, magazines and general merchandise, including gifts, cards, games, toys, collectibles, music, DVDs, electronic devices and accessories in its retail stores. In the electronic commerce trade segment, it is engaged in the retail sale of books and general merchandise over the internet. The real estate development and management segment is managed separately from the retail trade and electronic commerce trade segments, with a focus on deriving revenues through developing and leasing commercial retail real estate for purposes of earning rental income. The Company promotes its bookstores through the use of traditional direct mail, e-mail and online advertising, as well as point-of-sale materials posted and distributed in its stores. The retail book business is competitive. The Company faces direct competition from other superstores, such as Barnes & Noble, and it also faces competition from mass merchandisers, such as Wal-Mart and Costco, and online retailers, such as Amazon.com, Barnes & Noble and Wal-Mart. Its bookstores also compete with specialty retail stores that offer books in particular subject areas, independent single store operators, variety discounters, drugstores, warehouse clubs, mail order clubs and other retailers offering books. In addition, its bookstores face additional competition from the market for electronic books and may face competition from other categories of retailers entering the retail book market. The Company is subject to general business regulations and laws, as well as regulations and laws specifically governing the Internet and e-commerce.
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