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Banco Santander SA (NYSE:SAN)
Cash Flow from Investing
$-15,242 Mil (TTM As of Dec. 2016)

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. 2016, Banco Santander SA spent $1,583 Mil on purchasing property, plant, equipment. It gained $581 Mil from selling property, plant, and equipment. It spent $16 Mil on purchasing business. It gained $0 Mil from selling business. It spent $2,234 Mil on purchasing investments. It gained $426 Mil from selling investments. It paid $674 Mil for net Intangibles purchase and sale. It paid $0 Mil for discontinued investing activities. And it received $464 Mil from other investing activities. In all, Banco Santander SA spent $3,036 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Dec. 2016.


Definition

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.

Banco Santander SA's Cash Flow from Investing for the fiscal year that ended in Dec. 2016 is calculated as:

Cash Flow from Investing(A: Dec. 2016 )
=Purchase of PPE+Sale of PPE+Purchase of Business
=-6932.48945148+2751.05485232+-500
+Sale of Business+Purchase of Investment+Sale of Investment
+99.1561181435+-9905.06329114+623.417721519
+Net Intangibles Purchase And Sale+Cash From Discontinued Investing+Cash From Other Investing
+-1864.97890295+0+1209.91561181
=-14,519

Banco Santander SA's Cash Flow from Investing for the quarter that ended in Dec. 2016 is calculated as:

Cash Flow from Investing(Q: Dec. 2016 )
=Purchase of PPE+Sale of PPE+Purchase of Business
=-1583.33333333+581.223628692+-15.8227848101
+Sale of Business+Purchase of Investment+Sale of Investment
+0+-2234.17721519+426.160337553
+Net Intangibles Purchase And Sale+Cash From Discontinued Investing+Cash From Other Investing
+-674.050632911+0+464.135021097
=-3,036

Banco Santander SA Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2016 was -1603.56347439 (Mar. 2016 ) + -1212.35955056 (Jun. 2016 ) + -9390.57239057 (Sep. 2016 ) + -3035.8649789 (Dec. 2016 ) = $-15,242 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Cash flow from investing contains nine items:

1. Purchase Of Property, Plant, Equipment:
Purchase of PPE indicates the amount used to purchase property, plant, and equipment.

Banco Santander SA's purchase of property, plant, equipment for the three months ended in Dec. 2016 was $-1,583 Mil. It means Banco Santander SA spent $1,583 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)."

2. Sale Of Property, Plant, Equipment:
Sale of PPE indicates the amount gained from selling property, plant, and equipment.

Banco Santander SA's sale of property, plant, equipment for the three months ended in Dec. 2016 was $581 Mil. It means Banco Santander SA gained $581 Mil from selling property, plant, and equipment.

3. Purchase Of Business:
Purchase of business indicates the amount used to purchase business.

Banco Santander SA's purchase of business for the three months ended in Dec. 2016 was $-16 Mil. It means Banco Santander SA spent $16 Mil on purchasing business.

4. Sale Of Business:
Sale of business indicates the amount gained from selling business.

Banco Santander SA's sale of business for the three months ended in Dec. 2016 was $0 Mil. It means Banco Santander SA gained $0 Mil from selling business.

5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.

Banco Santander SA's purchase of investment for the three months ended in Dec. 2016 was $-2,234 Mil. It means Banco Santander SA spent $2,234 Mil on purchasing investments.

6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.

Banco Santander SA's sale of investment for the three months ended in Dec. 2016 was $426 Mil. It means Banco Santander SA gained $426 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.

Banco Santander SA's net Intangibles purchase and sale for the three months ended in Dec. 2016 was $-674 Mil. It means Banco Santander SA paid $674 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.

Banco Santander SA's cash from discontinued investing activities for the three months ended in Dec. 2016 was $0 Mil. It means Banco Santander SA 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.

Banco Santander SA's cash from other investing activities for the three months ended in Dec. 2016 was $464 Mil. It means Banco Santander SA received $464 Mil from other investing activities.


Related Terms

Cash Flow from Operations, Cash Flow from Financing, Cash Flow for Capital Expenditures, Purchase of PPE, Sale of PPE, Purchase of Business, Sale of Business, Purchase of Investment, Sale of Investment, Net Intangibles Purchase And Sale, Cash From Discontinued Investing, Cash From Other Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Banco Santander SA Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
PurchaseOfPPE -1,697-3,700-2,740-4,808-2,445-2,836-2,571-8,255-8,349-6,932
SaleOfPPE 02,0401,7149216841,0706851,2162,5992,751
PurchaseOfBusiness 00-328-212-9,44200-1,621-1,474-500
SaleOfBusiness 01,1191,102441,3741,3012,1621,23861599
PurchaseOfInvestment -17,910-1,018-20-13-1-43-248-22-89-9,905
SaleOfInvestment 1,4276020138133404400610623
NetIntangiblesPurchaseAndSale 01,025-2,773-1,979-2,026-2,257-1,678-1,502-1,710-1,865
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -12,6451,7577,2282,4252,6222,9292,1741,1431,0241,210
Cash Flow from Investing -30,8261,2844,204-3,485-9,221165927-7,404-6,773-14,519

Banco Santander SA Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
PurchaseOfPPE -2,443-2,401-1,525-2,558-2,299-2,100-1,915-2,063-1,700-1,583
SaleOfPPE 72008131,208842-208607909789581
PurchaseOfBusiness -494-977-1,038558-629-361-40-43-432-16
SaleOfBusiness 00640000000
PurchaseOfInvestment -1720-31-16-15-28-3-2-8,156-2,234
SaleOfInvestment 494711479-1803088639-437426
NetIntangiblesPurchaseAndSale -418-45449-443-290-1,048-490-420-354-674
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 244773200-2741,277400231-233899464
Cash Flow from Investing -2,358-2,991-1,458-1,046-1,292-3,037-1,604-1,212-9,391-3,036
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