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GuruFocus has detected 7 Warning Signs with The Hershey Co \$HSY.
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The Hershey Co (NYSE:HSY)
Cash Flow from Financing
\$-434 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 three months ended in Dec. 2016, The Hershey Co paid \$140 Mil more to buy back shares than it received from issuing new shares. It spent \$225 Mil paying down its debt. It paid \$0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent \$128 Mil paying cash dividends to shareholders. It received \$8 Mil on other financial activities. In all, The Hershey Co spent \$484 Mil on financial activities for the three 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.

The Hershey Co's Cash from Financing for the fiscal year that ended in Dec. 2016 is calculated as:

 Cash from Financing (A: Dec. 2016 ) = Net Issuance of Stock + Net Issuance of Debt + Net Issuance of Preferred + Dividends + Other Financing = -592.55 + 568.56 + 0 + -499.475 + 89.022 = -434

The Hershey Co'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 = -139.97 + -224.936 + 0 + -127.769 + 8.47 = -484

The Hershey Co Cash Flow from Financing for the trailing twelve months (TTM) ended in Dec. 2016 was -271.235 (Mar. 2016 ) + 230.634 (Jun. 2016 ) + 90.363 (Sep. 2016 ) + -484.205 (Dec. 2016 ) = \$-434 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.

The Hershey Co's net issuance of stock for the three months ended in Dec. 2016 was \$-140 Mil. The Hershey Co paid \$140 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.

The Hershey Co's net issuance of debt for the three months ended in Dec. 2016 was \$-225 Mil. The Hershey Co spent \$225 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.

The Hershey Co's net issuance of preferred for the three months ended in Dec. 2016 was \$0 Mil. The Hershey Co 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.

The Hershey Co's cash flow for dividends for the three months ended in Dec. 2016 was \$-128 Mil. The Hershey Co spent \$128 Mil paying cash dividends to shareholders.

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

The Hershey Co's other financing for the three months ended in Dec. 2016 was \$8 Mil. The Hershey Co received \$8 Mil on other financial activities.

Related Terms

Historical Data

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

The Hershey Co Annual Data

 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Net Issuance of Stock -256 -60 -9 -169 -385 -511 -306 -577 -583 -593 Net Issuance of Debt 6 -129 -466 278 4 -18 54 119 254 569 Net Issuance of Preferred 0 0 0 0 0 0 0 0 0 0 Dividends -252 -263 -263 -283 -304 -341 -394 -440 -476 -499 Other Financing 60 38 40 104 246 283 199 179 49 89 Cash from Financing -442 -413 -699 -71 -439 -587 -447 -719 -755 -434

The Hershey Co Quarterly Data

 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Net Issuance of Stock -34 -307 -9 -252 -15 -304 -149 0 -140 0 Net Issuance of Debt -263 290 -35 330 -331 154 476 163 -225 0 Net Issuance of Preferred 0 0 0 0 0 0 0 0 0 0 Dividends -115 -114 -115 -124 -123 -122 -121 -129 -128 0 Other Financing 29 55 19 -26 1 1 24 56 8 0 Cash from Financing -383 -77 -139 -72 -468 -271 231 90 -484 0
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