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Southwest Airlines Co (NYSE:LUV)
Cash from Financing
$-940 Mil (TTM As of Mar. 2014)

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 Mar. 2014, Southwest Airlines Co paid $315 Mil more to buy back shares than it received from issuing new shares. It spent $46 Mil paying down its debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $56 Mil paying cash dividends to shareholders. It received $42 Mil on other financial activities. In all, Southwest Airlines Co spent $375 Mil on financial activities for the three months ended in Mar. 2014.


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.

Southwest Airlines Co's Cash from Financing for the fiscal year that ended in Dec. 2013 is calculated as:

Cash from Financing(A: Dec. 2013 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-540+-313+0+-71+73
=-851

Southwest Airlines Co's Cash from Financing for the quarter that ended in Mar. 2014 is

Cash from Financing(Q: Mar. 2014 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-315+-46+0+-56+42
=-375

Southwest Airlines Co Cash Flow from Financing for the trailing twelve months (TTM) ended in Mar. 2014 was -327 (Jun. 2013 ) + -225 (Sep. 2013 ) + -13 (Dec. 2013 ) + -375 (Mar. 2014 ) = $-940 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.

Southwest Airlines Co's net issuance of stock for the three months ended in Mar. 2014 was $-315 Mil. Southwest Airlines Co paid $315 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.

Southwest Airlines Co's net issuance of debt for the three months ended in Mar. 2014 was $-46 Mil. Southwest Airlines Co spent $46 Mil paying down its 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.

Southwest Airlines Co's net issuance of preferred for the three months ended in Mar. 2014 was $0 Mil. Southwest Airlines Co 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.

Southwest Airlines Co's cash flow for dividends for the three months ended in Mar. 2014 was $-56 Mil. Southwest Airlines Co spent $56 Mil paying cash dividends to shareholders.

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

Southwest Airlines Co's other financing for the three months ended in Mar. 2014 was $42 Mil. Southwest Airlines Co received $42 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 own currency.

Southwest Airlines Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Net Issuance of Stock -15877-540-1,001-5400-225-400-540
Net Issuance of Debt 0003781,436-45-199-621-578-313
Net Issuance of Preferred 0000000000
Dividends -14-14-14-14-13-13-13-14-22-71
Other Financing 305197-24714428538863945373
Cash from Financing 133260-801-4931,654330-149-766-947-851

Southwest Airlines Co Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
Net Issuance of Stock -50-50-225-50-75-100-251-150-39-315
Net Issuance of Debt -430-431-38-48-61-164-52-51-46-46
Net Issuance of Preferred 0000000000
Dividends 0-7-8-70-15-28-280-56
Other Financing -1346339-7447242
Cash from Financing -493-484-265-102-97-286-327-225-13-375
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