Switch to:
Australia and New Zealand Banking Group Ltd (OTCPK:ANZBY)
Cash Flow from Investing
$-7,245 Mil (TTM As of Mar. 2014)

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 six months ended in Mar. 2014, Australia and New Zealand Banking Group Ltd spent $126 Mil on purchasing property, plant, equipment. It gained $0 Mil from selling property, plant, and equipment. It spent $0 Mil on purchasing business. It gained $8 Mil from selling business. It spent $6,256 Mil on purchasing investments. It gained $7,406 Mil from selling investments. It paid $0 Mil for net Intangibles purchase and sale. It paid $0 Mil for discontinued investing activities. And it paid $798 Mil for other investing activities. In all, Australia and New Zealand Banking Group Ltd gained $235 Mil on investment activities in financial market and operating subsidiaries for the six months ended in Mar. 2014.


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.

Australia and New Zealand Banking Group Ltd's Cash Flow from Investing for the fiscal year that ended in Sep. 2013 is calculated as:

Australia and New Zealand Banking Group Ltd's Cash Flow from Investing for the quarter that ended in Mar. 2014 is calculated as:

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Australia and New Zealand Banking Group Ltd Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2014 was $-7,245 Mil.

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

Australia and New Zealand Banking Group Ltd's purchase of property, plant, equipment for the six months ended in Mar. 2014 was $-126 Mil. It means Australia and New Zealand Banking Group Ltd spent $126 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.

Australia and New Zealand Banking Group Ltd's sale of property, plant, equipment for the six months ended in Mar. 2014 was $0 Mil. It means Australia and New Zealand Banking Group Ltd gained $0 Mil from selling property, plant, and equipment.

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

Australia and New Zealand Banking Group Ltd's purchase of business for the six months ended in Mar. 2014 was $0 Mil. It means Australia and New Zealand Banking Group Ltd spent $0 Mil on purchasing business.

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

Australia and New Zealand Banking Group Ltd's sale of business for the six months ended in Mar. 2014 was $8 Mil. It means Australia and New Zealand Banking Group Ltd gained $8 Mil from selling business.

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

Australia and New Zealand Banking Group Ltd's purchase of investment for the six months ended in Mar. 2014 was $-6,256 Mil. It means Australia and New Zealand Banking Group Ltd spent $6,256 Mil on purchasing investments.

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

Australia and New Zealand Banking Group Ltd's sale of investment for the six months ended in Mar. 2014 was $7,406 Mil. It means Australia and New Zealand Banking Group Ltd gained $7,406 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.

Australia and New Zealand Banking Group Ltd's net Intangibles purchase and sale for the six months ended in Mar. 2014 was $0 Mil. It means Australia and New Zealand Banking Group Ltd 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.

Australia and New Zealand Banking Group Ltd's cash from discontinued investing activities for the six months ended in Mar. 2014 was $0 Mil. It means Australia and New Zealand Banking Group Ltd 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.

Australia and New Zealand Banking Group Ltd's cash from other investing activities for the six months ended in Mar. 2014 was $-798 Mil. It means Australia and New Zealand Banking Group Ltd paid $798 Mil for 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 own currency.

Australia and New Zealand Banking Group Ltd Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
PurchaseOfPPE -253-245-189-370-384-643-311-325-329-339
SaleOfPPE 396514716724246210
PurchaseOfBusiness -2,393-112-218-1,305-309-23849-309-1-2
SaleOfBusiness 022711400881415751977
PurchaseOfInvestment -22,315-34,949-11,674-11,895-20,761-28,087-28,794-41,360-31,350-15,543
SaleOfInvestment 3,94413,46612,2478,73218,48528,61224,79840,20132,1329,737
NetIntangiblesPurchaseAndSale 0-54900000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 1,068-1,2971,2801,429-756-45-1,403-864-723-1,175
Cash Flow from Investing -19,910-23,3941,471-2,938-3,570-364-5,623-2,575-232-7,245

Australia and New Zealand Banking Group Ltd Semi-Annual Data

Sep09Mar10Sep10Mar11Sep11Mar12Sep12Mar13Sep13Mar14
PurchaseOfPPE -299-166-136-179-153-135-195-155-197-126
SaleOfPPE 051915210000
PurchaseOfBusiness -186-1,6171,764-269-51-21-1-10
SaleOfBusiness 369443313526538
PurchaseOfInvestment -12,990-17,114-10,638-19,888-22,261-27,789-3,704-10,622-5,801-6,256
SaleOfInvestment 12,59115,9317,89622,01719,05826,2186,0487,8312,5557,406
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -16-778-578-505-378-444-281-571-651-798
Cash Flow from Investing -898-3,732-1,6631,221-3,748-2,1171,874-3,492-4,042235
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK