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DTE Energy Co (NYSE:DTE)
Cash Flow from Investing
$-3,388 Mil (TTM As of Dec. 2016)

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. 2016, DTE Energy Co spent $703 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 $0 Mil from selling business. It spent $363 Mil on purchasing investments. It gained $322 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 $1,141 Mil for other investing activities. In all, DTE Energy Co spent $1,885 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Dec. 2016.


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.

DTE Energy Co's Cash Flow from Investing for the fiscal year that ended in Dec. 2016 is calculated as:

DTE Energy Co's Cash Flow from Investing for the quarter that ended in Dec. 2016 is calculated as:

DTE Energy Co Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2016 was -437 (Mar. 2016 ) + -501 (Jun. 2016 ) + -565 (Sep. 2016 ) + -1885 (Dec. 2016 ) = $-3,388 Mil.

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

DTE Energy Co's purchase of property, plant, equipment for the three months ended in Dec. 2016 was $-703 Mil. It means DTE Energy Co spent $703 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.

DTE Energy Co's sale of property, plant, equipment for the three months ended in Dec. 2016 was $0 Mil. It means DTE Energy Co gained $0 Mil from selling property, plant, and equipment.

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

DTE Energy Co's purchase of business for the three months ended in Dec. 2016 was $0 Mil. It means DTE Energy Co spent $0 Mil on purchasing business.

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

DTE Energy Co's sale of business for the three months ended in Dec. 2016 was $0 Mil. It means DTE Energy Co gained $0 Mil from selling business.

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

DTE Energy Co's purchase of investment for the three months ended in Dec. 2016 was $-363 Mil. It means DTE Energy Co spent $363 Mil on purchasing investments.

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

DTE Energy Co's sale of investment for the three months ended in Dec. 2016 was $322 Mil. It means DTE Energy Co gained $322 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.

DTE Energy Co's net Intangibles purchase and sale for the three months ended in Dec. 2016 was $0 Mil. It means DTE Energy Co 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.

DTE Energy Co's cash from discontinued investing activities for the three months ended in Dec. 2016 was $0 Mil. It means DTE Energy Co 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.

DTE Energy Co's cash from other investing activities for the three months ended in Dec. 2016 was $-1,141 Mil. It means DTE Energy Co paid $1,141 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 local exchange's currency.

DTE Energy Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
PurchaseOfPPE -1,299-1,373-1,035-1,099-1,484-1,820-1,876-2,049-2,020-2,045
SaleOfPPE 2862328356000000
PurchaseOfBusiness 0-387000-19800-241-1,147
SaleOfBusiness 033701902550000
PurchaseOfInvestment 0-411-330-459-850-764-1,155-1,198-996-1,702
SaleOfInvestment 02322953778337591,1181,1468851,457
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 1,343-153-77-120-59-174116849
Cash Flow from Investing 330-1,523-1,064-1,226-1,560-1,769-1,906-2,060-2,204-3,388

DTE Energy Co Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
PurchaseOfPPE -422-547-405-490-506-619-424-437-481-703
SaleOfPPE 0000000000
PurchaseOfBusiness 00-240-1000000
SaleOfBusiness 0000000000
PurchaseOfInvestment -182-533-272-206-218-300-288-577-474-363
SaleOfInvestment 177494246194187258260481394322
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 37-17115231291532-4-1,141
Cash Flow from Investing -390-603-556-480-536-632-437-501-565-1,885
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