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 Jun. 2015, Lafargespent€0 Mil on purchasing property, plant, equipment.
It gained€205 Mil from selling property, plant, and equipment.
It spent€7 Mil on purchasing business.
It gained€0 Mil from selling business.
It spent€0 Mil on purchasing investments.
It gained€0 Mil from selling investments.
It paid€0Mil for net Intangibles purchase and sale.
And it paid€268 Mil for other investing activities.
In all, Lafargespent€70 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Jun. 2015.
Lafarge Cash Flow from Investing Historical Data
The historical data trend for Lafarge'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.
Lafarge's Cash Flow from Investing for the fiscal year that ended in Dec. 2014 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was €-91 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.
Lafarge (XPAR:LGNV) Cash Flow from Investing Explanation
Lafarge's purchase of property, plant, equipment for the
three
months ended in Jun. 2015 was €0 Mil. It means Lafarge 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)."
Lafarge's sale of property, plant, equipment for the
three
months ended in Jun. 2015 was €205 Mil. It means Lafarge gained €205 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Lafarge's purchase of business for the
three
months ended in Jun. 2015 was €-7 Mil. It means Lafarge spent €7 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Lafarge's sale of business for the
three
months ended in Jun. 2015 was €0 Mil. It means Lafarge gained €0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Lafarge's purchase of investment for the
three
months ended in Jun. 2015 was €0 Mil. It means Lafarge spent {stock_data.stock.currency_symbol}}0 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Lafarge's sale of investment for the
three
months ended in Jun. 2015 was €0 Mil. It means Lafarge gained €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.
Lafarge's net Intangibles purchase and sale for the
three
months ended in Jun. 2015 was €0 Mil.
It means Lafarge 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.
Lafarge's cash from discontinued investing activities for the
three
months ended in Jun. 2015 was 0 Mil.
It means Lafarge 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.
Lafarge's cash from other investing activities for the
three
months ended in Jun. 2015 was €-268 Mil.
It means Lafarge paid €268 Mil for other investing activities.
Lafarge Cash Flow from Investing Related Terms
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Lafarge SA is a French limited liability company governed by French law and was founded in France in 1833 and was incorporated in 1884 under the name "J. et A. Pavin de Lafarge". The Company provides building materials. It is engaged in producing & selling cement, aggregates and ready-mix concrete, mostly under the "Lafarge" brand name. Its building products and solutions are used to construct and renovate homes, buildings and infrastructures. At year-end 2013, Company cement production operated, in 56 countries, 113 cement plants and 42 grinding plants, with an annual production capacity of 221 million tons. It also manages cement trading activities. The Company aggregates and concrete are used as raw materials for concrete, masonry, asphalt, and other industrial processes, and as base materials for roads, landï¬lls, and building. As of December 31, 2013, Company had approximately 437 production facilities for aggregates in 23 countries. The Company's Ready-mix concrete had 1,026 concrete plants in 33 countries as of December 31, 2014. The Company also produces asphalt in North America and the United Kingdom, and sells either as a stand-alone product, or in conjunction with contracted paving. The Company operates in Western Europe, North America, Central & Eastern Europe, Middle East & Africa, and Asia.
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