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, Gilead Sciences spent$215 Mil on purchasing property, plant, equipment.
It gained$0 Mil from selling property, plant, and equipment.
It spent$279 Mil on purchasing business.
It gained$0 Mil from selling business.
It spent$680 Mil on purchasing investments.
It gained$447 Mil from selling investments.
It paid$0Mil for net Intangibles purchase and sale.
And it paid$0 Mil for other investing activities.
In all, Gilead Sciences
spent$727 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2023.
Gilead Sciences Cash Flow from Investing Historical Data
The historical data trend for Gilead Sciences'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.
Gilead Sciences 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.
Gilead Sciences'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 $-2,265 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.
Gilead Sciences (NAS:GILD) Cash Flow from Investing Explanation
Gilead Sciences's purchase of property, plant, equipment for the
three
months ended in Dec. 2023 was $-215 Mil. It means Gilead Sciences spent $215 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)."
Gilead Sciences's sale of property, plant, equipment for the
three
months ended in Dec. 2023 was $0 Mil. It means Gilead Sciences gained $0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Gilead Sciences's purchase of business for the
three
months ended in Dec. 2023 was $-279 Mil. It means Gilead Sciences spent $279 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Gilead Sciences's sale of business for the
three
months ended in Dec. 2023 was $0 Mil. It means Gilead Sciences gained $0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Gilead Sciences's purchase of investment for the
three
months ended in Dec. 2023 was $-680 Mil. It means Gilead Sciences spent {stock_data.stock.currency_symbol}}680 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Gilead Sciences's sale of investment for the
three
months ended in Dec. 2023 was $447 Mil. It means Gilead Sciences gained $447 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.
Gilead Sciences's net Intangibles purchase and sale for the
three
months ended in Dec. 2023 was $0 Mil.
It means Gilead Sciences 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.
Gilead Sciences's cash from discontinued investing activities for the
three
months ended in Dec. 2023 was 0 Mil.
It means Gilead Sciences 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.
Gilead Sciences's cash from other investing activities for the
three
months ended in Dec. 2023 was $0 Mil.
It means Gilead Sciences paid $0 Mil for other investing activities.
Gilead Sciences Cash Flow from Investing Related Terms
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Gilead Sciences (Gilead Sciences) Business Description
Gilead Sciences develops and markets therapies to treat life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. The acquisitions of Corus Pharma, Myogen, CV Therapeutics, Arresto Biosciences, and Calistoga have broadened this focus to include pulmonary and cardiovascular diseases and cancer. Gilead's acquisition of Pharmasset brought rights to hepatitis C drug Sovaldi, which is also part of combination drug Harvoni, and the Kite, Forty Seven, and Immunomedics acquisitions boost Gilead's exposure to cell therapy and noncell therapy in oncology.
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