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Cummins Inc (NYSE:CMI)
Cash from Financing
$-1,416 Mil (TTM As of Jun. 2015)

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 three months ended in Jun. 2015, Cummins Inc paid $377 Mil more to buy back shares than it received from issuing new shares. It spent $13 Mil paying down its debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $153 Mil paying cash dividends to shareholders. It received $10 Mil on other financial activities. In all, Cummins Inc spent $533 Mil on financial activities for the three months ended in Jun. 2015.


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.

Cummins Inc's Cash from Financing for the fiscal year that ended in Dec. 2014 is calculated as:

Cash from Financing(A: Dec. 2014 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-670+-39+0+-595+-39
=-1,343

Cummins Inc's Cash from Financing for the quarter that ended in Jun. 2015 is

Cash from Financing(Q: Jun. 2015 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-377+-13+0+-153+10
=-533

Cummins Inc Cash Flow from Financing for the trailing twelve months (TTM) ended in Jun. 2015 was -343 (Sep. 2014 ) + -244 (Dec. 2014 ) + -296 (Mar. 2015 ) + -533 (Jun. 2015 ) = $-1,416 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.

Cummins Inc's net issuance of stock for the three months ended in Jun. 2015 was $-377 Mil. Cummins Inc paid $377 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.

Cummins Inc's net issuance of debt for the three months ended in Jun. 2015 was $-13 Mil. Cummins Inc spent $13 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.

Cummins Inc's net issuance of preferred for the three months ended in Jun. 2015 was $0 Mil. Cummins Inc 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.

Cummins Inc's cash flow for dividends for the three months ended in Jun. 2015 was $-153 Mil. Cummins Inc spent $153 Mil paying cash dividends to shareholders.

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

Cummins Inc's other financing for the three months ended in Jun. 2015 was $10 Mil. Cummins Inc received $10 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 own currency.

Cummins Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
Net Issuance of Stock -8-112-331-6552-183-629-256-381-670
Net Issuance of Debt -294-309-141-43-2380-104-70914-39
Net Issuance of Preferred 0000000000
Dividends -56-66-89-146-175-200-311-340-495-595
Other Financing -14-21-151753619-2814-39
Cash from Financing -372-508-576-237-141-267-1,025-69452-1,343

Cummins Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
Net Issuance of Stock 0-28900-419-11-175-65-137-377
Net Issuance of Debt -1219952-45-18-52-435-16-13
Net Issuance of Preferred 0000000000
Dividends -114-103-141-137-128-133-161-173-141-153
Other Financing 2336-110-3742-3-41-210
Cash from Financing -103-370817-292-602-154-343-244-296-533
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