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GuruFocus has detected 6 Warning Signs with BHP Billiton Ltd $BHP.
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BHP Billiton Ltd (NYSE:BHP)
Cash Flow from Financing
$284 Mil (TTM As of Dec. 2016)

Cash from financing is the cash generated/spent from financial activities such as share issuance (buy back), debt issuance (repayment), and dividends paid to preferred and common stockholders.

For the six months ended in Dec. 2016, BHP Billiton Ltd paid $76 Mil more to buy back shares than it received from issuing new shares. It spent $1,000 Mil paying down its debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $748 Mil paying cash dividends to shareholders. It spent $300 Mil on other financial activities. In all, BHP Billiton Ltd spent $2,124 Mil on financial activities for the six months ended in Dec. 2016.


Definition

This is the cash generated/spent from financial activities such as share issuance (buy back), debt issuance (repayment), and dividends paid to preferred and common stockholders. In the calculation of free cash flow, cash from financing is not calculated because it is not related to operating activities.

BHP Billiton Ltd's Cash from Financing for the fiscal year that ended in Jun. 2016 is calculated as:

Cash from Financing(A: Jun. 2016 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-106+4607+0+-4130+-87
=284

BHP Billiton Ltd's Cash from Financing for the quarter that ended in Dec. 2016 is

Cash from Financing(Q: Dec. 2016 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-76+-1000+0+-748+-300
=-2,124

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. BHP Billiton Ltd Cash Flow from Financing for the trailing twelve months (TTM) ended in Dec. 2016 was $284 Mil.

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


Explanation

Cash from financing contains five items:

1. Net Issuance of Stock:
A company may raise cash from issuing new shares. It can also use cash to buy back shares. If this number is positive, it means that the company has received more cash from issuing shares than it has paid to buy back shares. If this number is negative, it means that company has paid more cash to buy back shares than it has received for issuing shares.

BHP Billiton Ltd's net issuance of stock for the six months ended in Dec. 2016 was $-76 Mil. BHP Billiton Ltd paid $76 Mil more to buy back shares than it received from issuing new shares.

2. Net Issuance of Debt:
Net issuance of debt is the cash a company received or spent through debt related activities such as debt issuance or debt repayment. If a company pays down its debt during the period, this number will be negative. If a company issued more debt, it receives cash and this number is positive.

BHP Billiton Ltd's net issuance of debt for the six months ended in Dec. 2016 was $-1,000 Mil. BHP Billiton Ltd spent $1,000 Mil paying down its debt.

3. Net Issuance of Preferred:
A company may raise cash from issuing new preferred shares. It can also use cash to buy back preferred shares. If this number is positive, it means that the company has received more cash from issuing preferred shares than it has paid to buy back preferred shares. If this number is negative, it means that company has paid more cash to buy back preferred shares than it has received for issuing preferred shares.

BHP Billiton Ltd's net issuance of preferred for the six months ended in Dec. 2016 was $0 Mil. BHP Billiton Ltd paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares.

4. Dividends:
Cash flow for dividends refers to the payment of cash to shareholders as dividends when the company generates income.

BHP Billiton Ltd's cash flow for dividends for the six months ended in Dec. 2016 was $-748 Mil. BHP Billiton Ltd spent $748 Mil paying cash dividends to shareholders.

5. Other Financing:
Money spent or earned by company from other financial activities.

BHP Billiton Ltd's other financing for the six months ended in Dec. 2016 was $-300 Mil. BHP Billiton Ltd spent $300 Mil on other financial activities.


Related Terms

Cash Flow from Operations, Cash Flow from Investing, Net Issuance of Stock, Net Issuance of Debt, Dividends, Net Issuance of Preferred


Historical Data

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

BHP Billiton Ltd Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Net Issuance of Stock -5,884-3,341-140-262-9,828-62-433-354-346-106
Net Issuance of Debt 1,614-4083,929-588-7998,6447,255-1,048-6954,607
Net Issuance of Preferred 0000000000
Dividends -2,271-3,135-4,563-4,618-5,054-5,877-6,167-6,387-6,498-4,130
Other Financing -68-115-406161-337-666-8531,321-737-87
Cash from Financing -6,609-6,999-1,180-5,307-16,0182,039-198-6,468-8,276284

BHP Billiton Ltd Semi-Annual Data

Jun12Dec12Jun13Dec13Jun14Dec14Jun15Dec15Jun16Dec16
Net Issuance of Stock 3268-4419-363-335-11-67-39-76
Net Issuance of Debt 3,0456,6016544,061-5,109-2,6121,9176,142-1,535-1,000
Net Issuance of Preferred 0000000000
Dividends -2,934-3,065-3,102-3,227-3,160-3,209-3,289-3,266-864-748
Other Financing -676-518-335996325-603-134-71-16-300
Cash from Financing -2393,026-3,2241,839-8,307-6,759-1,5172,738-2,454-2,124
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