Switch to:
GuruFocus has detected 2 Warning Signs with Nokia Oyj $NOK.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Nokia Oyj (NYSE:NOK)
Cash Flow from Investing
$9,256 Mil (TTM As of Sep. 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 Sep. 2016, Nokia Oyj spent $186 Mil on purchasing property, plant, equipment. It gained $11 Mil from selling property, plant, and equipment. It spent $136 Mil on purchasing business. It gained $31 Mil from selling business. It spent $1,611 Mil on purchasing investments. It gained $1,633 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 $52 Mil from other investing activities. In all, Nokia Oyj spent $205 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Sep. 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.

Nokia Oyj's Cash Flow from Investing for the fiscal year that ended in Dec. 2015 is calculated as:

Nokia Oyj's Cash Flow from Investing for the quarter that ended in Sep. 2016 is calculated as:

Nokia Oyj Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2016 was 2180.82788671 (Dec. 2015 ) + 6864.14253898 (Mar. 2016 ) + 416.853932584 (Jun. 2016 ) + -205.387205387 (Sep. 2016 ) = $9,256 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.

Nokia Oyj's purchase of property, plant, equipment for the three months ended in Sep. 2016 was $-186 Mil. It means Nokia Oyj spent $186 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.

Nokia Oyj's sale of property, plant, equipment for the three months ended in Sep. 2016 was $11 Mil. It means Nokia Oyj gained $11 Mil from selling property, plant, and equipment.

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

Nokia Oyj's purchase of business for the three months ended in Sep. 2016 was $-136 Mil. It means Nokia Oyj spent $136 Mil on purchasing business.

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

Nokia Oyj's sale of business for the three months ended in Sep. 2016 was $31 Mil. It means Nokia Oyj gained $31 Mil from selling business.

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

Nokia Oyj's purchase of investment for the three months ended in Sep. 2016 was $-1,611 Mil. It means Nokia Oyj spent $1,611 Mil on purchasing investments.

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

Nokia Oyj's sale of investment for the three months ended in Sep. 2016 was $1,633 Mil. It means Nokia Oyj gained $1,633 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.

Nokia Oyj's net Intangibles purchase and sale for the three months ended in Sep. 2016 was $0 Mil. It means Nokia Oyj 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.

Nokia Oyj's cash from discontinued investing activities for the three months ended in Sep. 2016 was $0 Mil. It means Nokia Oyj 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.

Nokia Oyj's cash from other investing activities for the three months ended in Sep. 2016 was $52 Mil. It means Nokia Oyj received $52 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 local exchange's currency.

Nokia Oyj Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
PurchaseOfPPE -1,026-1,271-1,381-813-898-786-605-558-383-342
SaleOfPPE 38105731462863366189540
PurchaseOfBusiness 0-36-32-44-44-317-11-216-107
SaleOfBusiness 095914719357000
PurchaseOfInvestment -4,388-7,167-1,068-5,233-12,358-5,782-2,314-1,471-3,761-3,847
SaleOfInvestment 6,7067,2496,3162,70010,0219,6093,2529792,2643,563
NetIntangiblesPurchaseAndSale 0-229-177-39000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -1307-7,7166-144-1,13614-753,1342,798
Cash Flow from Investing 1,329-1,033-3,926-3,131-3,2021,972738-9471,0922,065

Nokia Oyj Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
PurchaseOfPPE -105-80-113-76-99-73-101-92-117-186
SaleOfPPE 3117920-1-12111
PurchaseOfBusiness -1-205-4-510-5706,854-201-136
SaleOfBusiness 3,223-9005200-271331
PurchaseOfInvestment -2,307-813-840-1,036-1,226-540-1,090-1,020-1,138-1,611
SaleOfInvestment 3275729038481,3058925761,1461,8941,633
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 31-1020024-8-652,7971-3652
Cash Flow from Investing 1,200-528154-288251562,1816,864417-205
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)
FEEDBACK