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. 2023, Ally Financialspent$585 Mil on purchasing property, plant, equipment.
It gained$738 Mil from selling property, plant, and equipment.
It spent$0 Mil on purchasing business.
It gained$0 Mil from selling business.
It spent$167 Mil on purchasing investments.
It gained$561 Mil from selling investments.
It paid$0Mil for net Intangibles purchase and sale.
And it paid$3,620 Mil for other investing activities.
In all, Ally Financialspent$3,073 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2023.
Ally Financial Cash Flow from Investing Historical Data
The historical data trend for Ally Financial'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.
Ally Financial 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.
Ally Financial's Cash Flow from Investing for the fiscal year that ended in Dec. 2023 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-7,288 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.
Ally Financial (NYSE:ALLY) Cash Flow from Investing Explanation
Ally Financial's purchase of property, plant, equipment for the
three
months ended in Dec. 2023 was $-585 Mil. It means Ally Financial spent $585 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)."
Ally Financial's sale of property, plant, equipment for the
three
months ended in Dec. 2023 was $738 Mil. It means Ally Financial gained $738 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Ally Financial's purchase of business for the
three
months ended in Dec. 2023 was $0 Mil. It means Ally Financial spent $0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Ally Financial's sale of business for the
three
months ended in Dec. 2023 was $0 Mil. It means Ally Financial gained $0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Ally Financial's purchase of investment for the
three
months ended in Dec. 2023 was $-167 Mil. It means Ally Financial spent {stock_data.stock.currency_symbol}}167 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Ally Financial's sale of investment for the
three
months ended in Dec. 2023 was $561 Mil. It means Ally Financial gained $561 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.
Ally Financial's net Intangibles purchase and sale for the
three
months ended in Dec. 2023 was $0 Mil.
It means Ally Financial 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.
Ally Financial's cash from discontinued investing activities for the
three
months ended in Dec. 2023 was 0 Mil.
It means Ally Financial 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.
Ally Financial's cash from other investing activities for the
three
months ended in Dec. 2023 was $-3,620 Mil.
It means Ally Financial paid $3,620 Mil for other investing activities.
Ally Financial Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of Ally Financial's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
Ally Financial (Ally Financial) Business Description
Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, personal loans, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model, which includes brokerage services.
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