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 Mar. 2014, ArthroCarespent€4.2 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, ArthroCarespent€4.2 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Mar. 2014.
ArthroCare Cash Flow from Investing Historical Data
The historical data trend for ArthroCare'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.
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.
ArthroCare's Cash Flow from Investing for the fiscal year that ended in Dec. 2013 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €-59.9 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.
ArthroCare (FRA:BQK) Cash Flow from Investing Explanation
ArthroCare's purchase of property, plant, equipment for the
three
months ended in Mar. 2014 was €-4.2 Mil. It means ArthroCare spent €4.2 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)."
ArthroCare's sale of property, plant, equipment for the
three
months ended in Mar. 2014 was €0.0 Mil. It means ArthroCare gained €0.0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
ArthroCare's purchase of business for the
three
months ended in Mar. 2014 was €0.0 Mil. It means ArthroCare spent €0.0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
ArthroCare's sale of business for the
three
months ended in Mar. 2014 was €0.0 Mil. It means ArthroCare gained €0.0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
ArthroCare's purchase of investment for the
three
months ended in Mar. 2014 was €0.0 Mil. It means ArthroCare 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.
ArthroCare's sale of investment for the
three
months ended in Mar. 2014 was €0.0 Mil. It means ArthroCare 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.
ArthroCare's net Intangibles purchase and sale for the
three
months ended in Mar. 2014 was €0.0 Mil.
It means ArthroCare 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.
ArthroCare's cash from discontinued investing activities for the
three
months ended in Mar. 2014 was 0.0 Mil.
It means ArthroCare 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.
ArthroCare's cash from other investing activities for the
three
months ended in Mar. 2014 was €0.0 Mil.
It means ArthroCare paid €0.0 Mil for other investing activities.
ArthroCare Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of ArthroCare's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
ArthroCare was incorporated in California in 1993 and reincorporated in Delaware in 1995. The Company is a multi-business medical device Company that develops, manufactures and markets minimally invasive surgical products, many of which are based on its patented Coblation(r) technology. The Company has grown well beyond its roots in arthroscopy to capitalize on numerous market opportunities across several medical specialties, improving many existing soft-tissue surgical procedures and enabling new minimally invasive procedures. With its innovative technologies, the Company is improving the lives of individuals suffering from conditions as diverse as torn rotator cuffs and anterior cruciate ligaments to herniated discs and enlarged tonsils/tonsillitis. The Company currently markets minimally invasive surgical products across three core business units-ArthroCare Sports Medicine, which include shoulder and knee arthroscopic products; ArthroCare Spine, which include spinal and neurosurgery products; and ArthroCare Ear, Nose and Throat, which include ear, nose, throat and the Visage(r) cosmetic products; - but also has developed, manufactured and marketed Coblation-based and complementary products for application in neurology, cosmetic surgery, urology and gynecology, with research continuing in additional areas. In each of its core business units, the Company is focusing on driving the application of enabling technologies, primarily for plasma-based soft tissue removal, and increasing the number of minimally invasive procedures being performed. The Company is marketing and selling its arthroscopic/sports medicine, spinal surgery, ENT and cosmetic surgery products using a combination of distributors supported by regional sales mangers, a direct sales force and corporate partners to sell its products both domestically and internationally. The Company owns over 170 issued U.S. patents and over 195 issued international patents. The Company's products are considered medical devices and are subject to regulation in the United States, with the approval of FDA for each of its products. Its primary competitors include Medtronic, Inc., Smith & Nephew, Stryker Corporation, Johnson & Johnson, Olympus (through its subsidiary Gyrus) and Arthrex, Inc.
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