Switch to:
Discover Financial Services (NYSE:DFS)
Cash from Financing
$3,332 Mil (TTM As of Sep. 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 three months ended in Sep. 2016, Discover Financial Services paid $581 Mil more to buy back shares than it received from issuing new shares. It received $2,143 Mil from issuing more debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $132 Mil paying cash dividends to shareholders. It received $719 Mil on other financial activities. In all, Discover Financial Services earned $2,149 Mil on financial activities for the three months ended in Sep. 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.

Discover Financial Services's Cash from Financing for the fiscal year that ended in Dec. 2015 is calculated as:

Cash from Financing(A: Dec. 2015 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-1710+2017+0+-515+1510
=1,302

Discover Financial Services's Cash from Financing for the quarter that ended in Sep. 2016 is

Cash from Financing(Q: Sep. 2016 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-581+2143+0+-132+719
=2,149

Discover Financial Services Cash Flow from Financing for the trailing twelve months (TTM) ended in Sep. 2016 was 1358 (Dec. 2015 ) + 423 (Mar. 2016 ) + -598 (Jun. 2016 ) + 2149 (Sep. 2016 ) = $3,332 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.

Discover Financial Services's net issuance of stock for the three months ended in Sep. 2016 was $-581 Mil. Discover Financial Services paid $581 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.

Discover Financial Services's net issuance of debt for the three months ended in Sep. 2016 was $2,143 Mil. Discover Financial Services received $2,143 Mil from issuing more 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.

Discover Financial Services's net issuance of preferred for the three months ended in Sep. 2016 was $0 Mil. Discover Financial Services 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.

Discover Financial Services's cash flow for dividends for the three months ended in Sep. 2016 was $-132 Mil. Discover Financial Services spent $132 Mil paying cash dividends to shareholders.

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

Discover Financial Services's other financing for the three months ended in Sep. 2016 was $719 Mil. Discover Financial Services received $719 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.

Discover Financial Services Annual Data

Nov06Nov07Nov08Nov09Nov10Nov11Nov12Dec13Dec14Dec15
Net Issuance of Stock 0-1-7522-7-413-1,190-1,283-1,559-1,710
Net Issuance of Debt 3,852-3,279-657194-7,144-2,3562,3192,5251,9902,017
Net Issuance of Preferred 0001,225-1,2250560000
Dividends -500-879-117-101-845-110-209-399-467-515
Other Financing -2,73111,6183,8163,5732,1495,1422,2482,7731,1371,510
Cash from Financing 6217,4593,0355,412-7,0722,2633,7283,6161,1011,302

Discover Financial Services Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
Net Issuance of Stock -177-620-398-419-423-435-433-422-422-581
Net Issuance of Debt -1448681,5854191,140-46692449-1092,143
Net Issuance of Preferred 0000000000
Dividends -122-120-119-119-135-131-130-129-125-132
Other Financing -542947706333-10728799792558719
Cash from Financing -9851,0751,774214475-7451,358423-5982,149
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