What is East West Bancorp Cash Flow from Investing?
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 Dec. 2023, East West Bancorpspent$0 Mil on purchasing property, plant, equipment.
It gained$0 Mil from selling property, plant, and equipment.
It spent$0 Mil on purchasing business.
It gained$0 Mil from selling business.
It spent$539 Mil on purchasing investments.
It gained$609 Mil from selling investments.
It paid$0Mil for net Intangibles purchase and sale.
And it paid$1,420 Mil for other investing activities.
In all, East West Bancorpspent$1,350 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2023.
East West Bancorp Cash Flow from Investing Historical Data
The historical data trend for East West Bancorp'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.
East West Bancorp 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.
East West Bancorp's Cash Flow from Investing for the fiscal year that ended in Dec. 2023 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-4,247 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.
East West Bancorp (NAS:EWBC) Cash Flow from Investing Explanation
East West Bancorp's purchase of property, plant, equipment for the
three
months ended in Dec. 2023 was $0 Mil. It means East West Bancorp spent $0 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)."
East West Bancorp's sale of property, plant, equipment for the
three
months ended in Dec. 2023 was $0 Mil. It means East West Bancorp gained $0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
East West Bancorp's purchase of business for the
three
months ended in Dec. 2023 was $0 Mil. It means East West Bancorp spent $0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
East West Bancorp's sale of business for the
three
months ended in Dec. 2023 was $0 Mil. It means East West Bancorp gained $0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
East West Bancorp's purchase of investment for the
three
months ended in Dec. 2023 was $-539 Mil. It means East West Bancorp spent {stock_data.stock.currency_symbol}}539 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
East West Bancorp's sale of investment for the
three
months ended in Dec. 2023 was $609 Mil. It means East West Bancorp gained $609 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.
East West Bancorp's net Intangibles purchase and sale for the
three
months ended in Dec. 2023 was $0 Mil.
It means East West Bancorp paid $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.
East West Bancorp's cash from discontinued investing activities for the
three
months ended in Dec. 2023 was 0 Mil.
It means East West Bancorp paid $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.
East West Bancorp's cash from other investing activities for the
three
months ended in Dec. 2023 was $-1,420 Mil.
It means East West Bancorp paid $1,420 Mil for other investing activities.
East West Bancorp Cash Flow from Investing Related Terms
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East West Bancorp (East West Bancorp) Business Description
East West Bancorp Inc is the holding company for East West Bank, a full-service commercial bank with cross-border operations concentrated in the United States and China. East-West Bank is one of a few U.S. based banks with a full banking license in China. The bank's cost strategy has increasingly focused on expanding its deposit base away from time deposits to commercial deposits. The bank has also taken part in entertainment partnerships between participants in China and Hollywood. Most of these efforts include financing the production and distribution of film and television projects. The bank leverages its cultural and regulatory knowledge in the U.S. and China to assist its customers in entering new markets. Most of its earning assets are in loans held for investment.
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