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F5 Networks Inc (NAS:FFIV)
Cash Flow from Investing
$151 Mil (TTM As of Sep. 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 three months ended in Sep. 2014, F5 Networks Inc spent $7 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 $129 Mil on purchasing investments. It gained $156 Mil from selling investments. It paid $0 Mil for net Intangibles purchase and sale. It paid $0 Mil for discontinued investing activities. And it received $0 Mil from other investing activities. In all, F5 Networks Inc gained $20 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Sep. 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.

F5 Networks Inc's Cash Flow from Investing for the fiscal year that ended in Sep. 2014 is calculated as:

F5 Networks Inc's Cash Flow from Investing for the quarter that ended in Sep. 2014 is calculated as:

F5 Networks Inc Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2014 was 70.166 (Dec. 2013 ) + 70.639 (Mar. 2014 ) + -10.48 (Jun. 2014 ) + 20.316 (Sep. 2014 ) = $151 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.

F5 Networks Inc's purchase of property, plant, equipment for the three months ended in Sep. 2014 was $-7 Mil. It means F5 Networks Inc spent $7 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.

F5 Networks Inc's sale of property, plant, equipment for the three months ended in Sep. 2014 was $0 Mil. It means F5 Networks Inc gained $0 Mil from selling property, plant, and equipment.

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

F5 Networks Inc's purchase of business for the three months ended in Sep. 2014 was $0 Mil. It means F5 Networks Inc spent $0 Mil on purchasing business.

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

F5 Networks Inc's sale of business for the three months ended in Sep. 2014 was $0 Mil. It means F5 Networks Inc gained $0 Mil from selling business.

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

F5 Networks Inc's purchase of investment for the three months ended in Sep. 2014 was $-129 Mil. It means F5 Networks Inc spent $129 Mil on purchasing investments.

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

F5 Networks Inc's sale of investment for the three months ended in Sep. 2014 was $156 Mil. It means F5 Networks Inc gained $156 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.

F5 Networks Inc's net Intangibles purchase and sale for the three months ended in Sep. 2014 was $0 Mil. It means F5 Networks Inc 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.

F5 Networks Inc's cash from discontinued investing activities for the three months ended in Sep. 2014 was $0 Mil. It means F5 Networks Inc 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.

F5 Networks Inc's cash from other investing activities for the three months ended in Sep. 2014 was $0 Mil. It means F5 Networks Inc received $0 Mil from 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.

F5 Networks Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
PurchaseOfPPE -9-21-16-28-12-13-30-30-27-23
SaleOfPPE 0000000000
PurchaseOfBusiness 0000000-128-213-49
SaleOfBusiness 0000000000
PurchaseOfInvestment -408-558-902-494-415-877-980-1,060-939-516
SaleOfInvestment 290418938535328649876866826738
NetIntangiblesPurchaseAndSale 0000-10-6-000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -0-43-2070030-0-10
Cash Flow from Investing -127-204-18814-99-238-140-352-352151

F5 Networks Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
PurchaseOfPPE -6-11-8-7-7-5-5-5-6-7
SaleOfPPE 0000000000
PurchaseOfBusiness 000-1250-8800-490
SaleOfBusiness 0000000000
PurchaseOfInvestment -298-279-313-134-298-194-148-142-98-129
SaleOfInvestment 208206188279180178223218142156
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -00-1-000-00-00
Cash Flow from Investing -95-85-13313-124-1087071-1020
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