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GuruFocus has detected 5 Warning Signs with Applied Materials Inc $AMAT.
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Applied Materials Inc (NAS:AMAT)
Cash from Financing
$-3,432 Mil (TTM As of Oct. 2016)

Cash from financing is the cash generated/spent from financial activities such as share issuance (buy back), debt issuance (repayment), and dividends paid to preferred and common stockholders.

For the three months ended in Oct. 2016, Applied Materials Inc paid $127 Mil more to buy back shares than it received from issuing new shares. It received $0 Mil from issuing more debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $108 Mil paying cash dividends to shareholders. It received $5 Mil on other financial activities. In all, Applied Materials Inc spent $230 Mil on financial activities for the three months ended in Oct. 2016.


Definition

This is the cash generated/spent from financial activities such as share issuance (buy back), debt issuance (repayment), and dividends paid to preferred and common stockholders. In the calculation of free cash flow, cash from financing is not calculated because it is not related to operating activities.

Applied Materials Inc's Cash from Financing for the fiscal year that ended in Oct. 2016 is calculated as:

Cash from Financing(A: Oct. 2016 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-1804+-1207+0+-444+23
=-3,432

Applied Materials Inc's Cash from Financing for the quarter that ended in Oct. 2016 is

Applied Materials Inc Cash Flow from Financing for the trailing twelve months (TTM) ended in Oct. 2016 was -1933 (Jan. 2016 ) + -968 (Apr. 2016 ) + -301 (Jul. 2016 ) + -230 (Oct. 2016 ) = $-3,432 Mil.

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


Explanation

Cash from financing contains five items:

1. Net Issuance of Stock:
A company may raise cash from issuing new shares. It can also use cash to buy back shares. If this number is positive, it means that the company has received more cash from issuing shares than it has paid to buy back shares. If this number is negative, it means that company has paid more cash to buy back shares than it has received for issuing shares.

Applied Materials Inc's net issuance of stock for the three months ended in Oct. 2016 was $-127 Mil. Applied Materials Inc paid $127 Mil more to buy back shares than it received from issuing new shares.

2. Net Issuance of Debt:
Net issuance of debt is the cash a company received or spent through debt related activities such as debt issuance or debt repayment. If a company pays down its debt during the period, this number will be negative. If a company issued more debt, it receives cash and this number is positive.

Applied Materials Inc's net issuance of debt for the three months ended in Oct. 2016 was $0 Mil. Applied Materials Inc received $0 Mil from issuing more debt.

3. Net Issuance of Preferred:
A company may raise cash from issuing new preferred shares. It can also use cash to buy back preferred shares. If this number is positive, it means that the company has received more cash from issuing preferred shares than it has paid to buy back preferred shares. If this number is negative, it means that company has paid more cash to buy back preferred shares than it has received for issuing preferred shares.

Applied Materials Inc's net issuance of preferred for the three months ended in Oct. 2016 was $0 Mil. Applied Materials Inc paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares.

4. Dividends:
Cash flow for dividends refers to the payment of cash to shareholders as dividends when the company generates income.

Applied Materials Inc's cash flow for dividends for the three months ended in Oct. 2016 was $-108 Mil. Applied Materials Inc spent $108 Mil paying cash dividends to shareholders.

5. Other Financing:
Money spent or earned by company from other financial activities.

Applied Materials Inc's other financing for the three months ended in Oct. 2016 was $5 Mil. Applied Materials Inc received $5 Mil on other financial activities.


Related Terms

Cash Flow from Operations, Cash Flow from Investing, Net Issuance of Stock, Net Issuance of Debt, Dividends, Net Issuance of Preferred


Historical Data

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

Applied Materials Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
Net Issuance of Stock -434-1,10639-221-373-1,320-86107-1,237-1,804
Net Issuance of Debt -202-2-1-61,730-1002,581-1,207
Net Issuance of Preferred 0000000000
Dividends -306-325-320-349-397-434-456-485-487-444
Other Financing 507000123305623
Cash from Financing -892-1,426-281-576960-1,754-519-348913-3,432

Applied Materials Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
Net Issuance of Stock 400000-623-858-196-127-130
Net Issuance of Debt 00000-1,2050-200
Net Issuance of Preferred 0000000000
Dividends -122-122-123-123-119-115-113-108-108-108
Other Financing 43954-6211,9281035544
Cash from Financing -78-83-69-7441,809-1,933-968-301-230-194
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