What is National Penn Bancshares 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. 2015, National Penn Bancsharesspent$-0.9 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$128.2 Mil on purchasing investments.
It gained$106.9 Mil from selling investments.
It paid$0.0Mil for net Intangibles purchase and sale.
And it paid$31.9 Mil for other investing activities.
In all, National Penn Bancsharesspent$52.3 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2015.
National Penn Bancshares Cash Flow from Investing Historical Data
The historical data trend for National Penn Bancshares'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.
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National Penn Bancshares Cash Flow from Investing Chart
National Penn Bancshares 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.
National Penn Bancshares'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 Dec. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-82.1 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.
National Penn Bancshares (NAS:NPBC) Cash Flow from Investing Explanation
National Penn Bancshares's purchase of property, plant, equipment for the
three
months ended in Dec. 2015 was $0.9 Mil. It means National Penn Bancshares spent $-0.9 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)."
National Penn Bancshares's sale of property, plant, equipment for the
three
months ended in Dec. 2015 was $0.0 Mil. It means National Penn Bancshares gained $0.0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
National Penn Bancshares's purchase of business for the
three
months ended in Dec. 2015 was $0.0 Mil. It means National Penn Bancshares spent $0.0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
National Penn Bancshares's sale of business for the
three
months ended in Dec. 2015 was $0.0 Mil. It means National Penn Bancshares gained $0.0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
National Penn Bancshares's purchase of investment for the
three
months ended in Dec. 2015 was $-128.2 Mil. It means National Penn Bancshares spent {stock_data.stock.currency_symbol}}128.2 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
National Penn Bancshares's sale of investment for the
three
months ended in Dec. 2015 was $106.9 Mil. It means National Penn Bancshares gained $106.9 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.
National Penn Bancshares's net Intangibles purchase and sale for the
three
months ended in Dec. 2015 was $0.0 Mil.
It means National Penn Bancshares 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.
National Penn Bancshares's cash from discontinued investing activities for the
three
months ended in Dec. 2015 was 0.0 Mil.
It means National Penn Bancshares 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.
National Penn Bancshares's cash from other investing activities for the
three
months ended in Dec. 2015 was $-31.9 Mil.
It means National Penn Bancshares paid $31.9 Mil for other investing activities.
National Penn Bancshares Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of National Penn Bancshares's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
National Penn Bancshares (National Penn Bancshares) Business Description
National Penn Bancshares Inc is a Pennsylvania business corporation incorporated in January 1982. The Company is a registered bank holding company. The Company provides financial services, through its subsidiary National Penn Bank. The Company through its subsidiaries is engaged in activities related to the business of banking. National Penn's financial services affiliates consist of National Penn Wealth Management, N.A., including its National Penn Investors Trust Company division; National Penn Capital Advisors, Inc.; Institutional Advisors, LLC; National Penn Insurance Services Group, Inc., including its Higgins Insurance and Caruso Benefits divisions. Commercial banking is its main business focus. Commercial banking services are provided to small and medium sized businesses with annual gross revenues generally between $1 million and $100 million located in its market areas. offer a wide range of products including short-term loans for seasonal and working capital purposes, term loans secured by real estate and other assets, loans for construction and expansion needs, revolving credit facilities, and a full array of cash management services, including remote deposit capture, disbursement, collection, investment and electronic banking services. Consumer banking offers deposit accounts, which include demand, NOW, money market, other checking and savings accounts, and certificates of deposit. It also offers consumer loan products such as installment loans, home equity loans, residential mortgage loans, education loans and credit cards. In addition, it offers automated teller services, safe deposit and night depository facilities and internet banking services, including on-line bill paying and mobile banking. In addition to generation of fee income through its commercial and consumer banking operations, including mortgage lending the Company has a number of specialized investment and insurance businesses to develop fee income and to serve specific markets. The Company also provides loans directly to consumers within its markets to finance personal residences, automobiles, college tuition, home improvements and other personal needs. The Company also makes indirect loans to customers for the purchase of both new and used vehicles. The majority of residential mortgages is conformed to FNMA and FHLMC underwriting criteria and is sold to secondary market investors. Other residential products such as jumbo mortgages are originated and typically held in its loan portfolio. The Company also provides home equity loans, home equity lines of credit and other consumer loans through its network of retail branch offices and its Private Banking division. The Company is subject to various federal and state statutes applicable to banks chartered in the United States, as well as regulations of the Office of the Comptroller of the Currency.
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