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GuruFocus has detected 5 Warning Signs with HP Inc $HPQ.
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HP Inc (NYSE:HPQ)
Cash Flow from Financing
$-1,529 Mil (TTM As of Jan. 2017)

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 Jan. 2017, HP Inc paid $386 Mil more to buy back shares than it received from issuing new shares. It received $13 Mil from issuing more debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $227 Mil paying cash dividends to shareholders. It spent $38 Mil on other financial activities. In all, HP Inc spent $638 Mil on financial activities for the three months ended in Jan. 2017.


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.

HP Inc's Cash from Financing for the fiscal year that ended in Oct. 2016 is calculated as:

Cash from Financing(A: Oct. 2016 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-1113+-2087+0+-858+-10365
=-14,423

HP Inc's Cash from Financing for the quarter that ended in Jan. 2017 is

Cash from Financing(Q: Jan. 2017 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-386+13+0+-227+-38
=-638

HP Inc Cash Flow from Financing for the trailing twelve months (TTM) ended in Jan. 2017 was -477 (Apr. 2016 ) + -204 (Jul. 2016 ) + -210 (Oct. 2016 ) + -638 (Jan. 2017 ) = $-1,529 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.

HP Inc's net issuance of stock for the three months ended in Jan. 2017 was $-386 Mil. HP Inc paid $386 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.

HP Inc's net issuance of debt for the three months ended in Jan. 2017 was $13 Mil. HP Inc received $13 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.

HP Inc's net issuance of preferred for the three months ended in Jan. 2017 was $0 Mil. HP 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.

HP Inc's cash flow for dividends for the three months ended in Jan. 2017 was $-227 Mil. HP Inc spent $227 Mil paying cash dividends to shareholders.

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

HP Inc's other financing for the three months ended in Jan. 2017 was $-38 Mil. HP Inc spent $38 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.

HP Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
Net Issuance of Stock -7,784-7,810-3,303-8,425-9,221-903-1,244-2,431-2,512-1,113
Net Issuance of Debt 2,5506,293-2,7665,9898,336-1,954-5,596-3,0144,965-2,087
Net Issuance of Preferred 0000000000
Dividends -846-796-766-771-844-1,015-1,105-1,184-1,250-858
Other Financing 48129316229416312258141-10,365
Cash from Financing -5,599-2,020-6,673-2,913-1,566-3,860-7,943-6,5711,344-14,423

HP Inc Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
Net Issuance of Stock -696-1,390-617-272-233-797-296-255-386
Net Issuance of Debt -252-5352,0854,434-1,019-2,1251033-513
Net Issuance of Preferred 0000000000
Dividends -309-304-291-318-337-221-213-212-212-227
Other Financing 91099-2649-10,3892202-38
Cash from Financing -1,248-2,1201,1863,818-1,540-13,532-477-204-210-638
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