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Cheung Kong Holdings Ltd (OTCPK:CHEUY)
Cash Flow from Investing
$9,363 Mil (TTM As of Dec. 2015)

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 Dec. 2015, Cheung Kong Holdings Ltd spent $1,911 Mil on purchasing property, plant, equipment. It gained $55 Mil from selling property, plant, and equipment. It spent $914 Mil on purchasing business. It gained $357 Mil from selling business. It spent $0 Mil on purchasing investments. It gained $70 Mil from selling investments. It paid $378 Mil for net Intangibles purchase and sale. It paid $0 Mil for discontinued investing activities. And it paid $12 Mil for other investing activities. In all, Cheung Kong Holdings Ltd spent $2,734 Mil on investment activities in financial market and operating subsidiaries for the six months ended in Dec. 2015.


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.

Cheung Kong Holdings Ltd's Cash Flow from Investing for the fiscal year that ended in Dec. 2015 is calculated as:

Cash Flow from Investing(A: Dec. 2015 )
=Purchase of PPE+Sale of PPE+Purchase of Business
=-2902.18947966+60.7687047622+11428.3871134
+Sale of Business+Purchase of Investment+Sale of Investment
+784.445275911+-8.77340111216+402.673306927
+Net Intangibles Purchase And Sale+Cash From Discontinued Investing+Cash From Other Investing
+-385.513566517+0+-17.030719806
=9,363

Cheung Kong Holdings Ltd's Cash Flow from Investing for the quarter that ended in Dec. 2015 is calculated as:

Cash Flow from Investing(Q: Dec. 2015 )
=Purchase of PPE+Sale of PPE+Purchase of Business
=-1911.3112364+54.833756951+-914.240004129
+Sale of Business+Purchase of Investment+Sale of Investment
+356.612951088+0+70.4452501064
+Net Intangibles Purchase And Sale+Cash From Discontinued Investing+Cash From Other Investing
+-378.159392055+0+-12.1279368315
=-2,734

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Cheung Kong Holdings Ltd Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was $9,363 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.

Cheung Kong Holdings Ltd's purchase of property, plant, equipment for the six months ended in Dec. 2015 was $-1,911 Mil. It means Cheung Kong Holdings Ltd spent $1,911 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.

Cheung Kong Holdings Ltd's sale of property, plant, equipment for the six months ended in Dec. 2015 was $55 Mil. It means Cheung Kong Holdings Ltd gained $55 Mil from selling property, plant, and equipment.

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

Cheung Kong Holdings Ltd's purchase of business for the six months ended in Dec. 2015 was $-914 Mil. It means Cheung Kong Holdings Ltd spent $914 Mil on purchasing business.

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

Cheung Kong Holdings Ltd's sale of business for the six months ended in Dec. 2015 was $357 Mil. It means Cheung Kong Holdings Ltd gained $357 Mil from selling business.

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

Cheung Kong Holdings Ltd's purchase of investment for the six months ended in Dec. 2015 was $0 Mil. It means Cheung Kong Holdings Ltd spent $0 Mil on purchasing investments.

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

Cheung Kong Holdings Ltd's sale of investment for the six months ended in Dec. 2015 was $70 Mil. It means Cheung Kong Holdings Ltd gained $70 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.

Cheung Kong Holdings Ltd's net Intangibles purchase and sale for the six months ended in Dec. 2015 was $-378 Mil. It means Cheung Kong Holdings Ltd paid $378 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.

Cheung Kong Holdings Ltd's cash from discontinued investing activities for the six months ended in Dec. 2015 was $0 Mil. It means Cheung Kong Holdings 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.

Cheung Kong Holdings Ltd's cash from other investing activities for the six months ended in Dec. 2015 was $-12 Mil. It means Cheung Kong Holdings Ltd paid $12 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.

Cheung Kong Holdings Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
PurchaseOfPPE -74-65-116-92-19-162-14-21-1,015-2,902
SaleOfPPE 00000000061
PurchaseOfBusiness -270-222-83-71-61000-1,09011,428
SaleOfBusiness 0386063030265201646784
PurchaseOfInvestment -449-146-567-108-173-431-16-24-26-9
SaleOfInvestment 324570436421772631191,08077403
NetIntangiblesPurchaseAndSale 000000000-386
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 4269182571-1,517212-3472-17
Cash Flow from Investing -465792-312216396-1,544366889-1,4069,363

Cheung Kong Holdings Ltd Semi-Annual Data

Jun11Dec11Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15
PurchaseOfPPE 000000-20-995-991-1,911
SaleOfPPE 00000000655
PurchaseOfBusiness 000000-138-95212,339-914
SaleOfBusiness 00000047599428357
PurchaseOfInvestment 0000000000
SaleOfInvestment 00000074233270
NetIntangiblesPurchaseAndSale 00000000-7-378
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 0000000-23-14-12
Cash Flow from Investing -97-1,447162204144745-37-1,36912,093-2,734
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