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 Sep. 2016, NetSuitespent$13.8 Mil on purchasing property, plant, equipment.
It gained$0.0 Mil from selling property, plant, and equipment.
It spent$0.2 Mil on purchasing business.
It gained$0.0 Mil from selling business.
It spent$33.6 Mil on purchasing investments.
It gained$33.0 Mil from selling investments.
It paid$0.0Mil for net Intangibles purchase and sale.
And it paid$0.9 Mil for other investing activities.
In all, NetSuitespent$15.6 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Sep. 2016.
NetSuite Cash Flow from Investing Historical Data
The historical data trend for NetSuite'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.
NetSuite's Cash Flow from Investing for the fiscal year that ended in Dec. 2015 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $-80.1 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.
NetSuite (NYSE:N) Cash Flow from Investing Explanation
NetSuite's purchase of property, plant, equipment for the
three
months ended in Sep. 2016 was $-13.8 Mil. It means NetSuite spent $13.8 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)."
NetSuite's sale of property, plant, equipment for the
three
months ended in Sep. 2016 was $0.0 Mil. It means NetSuite gained $0.0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
NetSuite's purchase of business for the
three
months ended in Sep. 2016 was $-0.2 Mil. It means NetSuite spent $0.2 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
NetSuite's sale of business for the
three
months ended in Sep. 2016 was $0.0 Mil. It means NetSuite gained $0.0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
NetSuite's purchase of investment for the
three
months ended in Sep. 2016 was $-33.6 Mil. It means NetSuite spent {stock_data.stock.currency_symbol}}33.6 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
NetSuite's sale of investment for the
three
months ended in Sep. 2016 was $33.0 Mil. It means NetSuite gained $33.0 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.
NetSuite's net Intangibles purchase and sale for the
three
months ended in Sep. 2016 was $0.0 Mil.
It means NetSuite 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.
NetSuite's cash from discontinued investing activities for the
three
months ended in Sep. 2016 was 0.0 Mil.
It means NetSuite 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.
NetSuite's cash from other investing activities for the
three
months ended in Sep. 2016 was $-0.9 Mil.
It means NetSuite paid $0.9 Mil for other investing activities.
NetSuite Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of NetSuite's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
NetSuite Inc was incorporated in California in September 1998 and reincorporated in Delaware in November 2007. The Company is engaged in providing cloud-based financials / Enterprise Resource Planning and omnichannel commerce software suites. It also offers suite of applications, including financial management, Customer Relationship Management, Ecommerce and retail management, Professional Services Automation and Human Capital Management that enable companies to manage its business operations. The Company's offerings include NetSuite, designed to provide business management capabilities; NetSuite, OneWorld and NetSuite CRM+ are designed for use by types of businesses; and NetSuite OpenAir is designed for use by professional services businesses. The Company's NetSuite applications are served to medium-sized businesses and divisions of companies provides a single platform for financials/ERP, CRM, PSA and Ecommerce capabilities. Its NetSuite OneWorld software is offered to companies operating in multinational and multi-subsidiary environment. NetSuite OneWorld allows users to utilize its single platform for financials/ERP, CRM, PSA and Ecommerce capabilities in multi-currency environments across multiple subsidiaries and legal entities. Its NetSuite CRM+ is offered to medium-sized business customers. This application provides traditional sales force automation, marketing automation, and customer support and service management functionality. NetSuite OpenAir PSA solution is used by professional services organizations. SuiteCommerce solution is built for retail and B2B businesses. SuiteCommerce enables businesses to move from standalone transactional channels such as online, in-store or telephone to an integrated commerce solution that puts the customer at the center of every experience. NetSuite POS is a point-of-sale solution that is used by retail businesses to deliver customer experience at the point of sale and turn today's shopper into tomorrow's loyal customer. TribeHR is a full suite of HCM functionality necessary to recruit, manage and reward employees. Add-On Modules offers integrated suite. SuiteCloud is a technology platform that allows customers, partners and developers to tailor and extend suite to meet specific company, vertical and industry requirements for personalization, business processes and practices. The Company's software allows businesses to automate operations, streamline processes and access real-time business information. It also offer customer support and professional services related to implementing and supporting its applications. It delivers its suite over the Internet as a subscription service using the software-as-a-service model. It also offers industry-specific configurations for use by wholesale/distribution, manufacturing, retail, nonprofit, services and software companies. The Company conducts its business in Canada, Europe, Asia, Australia and Uruguay. The Company competes with financials/ERP, C
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