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GuruFocus has detected 1 Warning Sign with CarMax Inc $KMX.
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CarMax Inc (NYSE:KMX)
Cash Flow from Financing
$935 Mil (TTM As of Feb. 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 Feb. 2017, CarMax Inc paid $75 Mil more to buy back shares than it received from issuing new shares. It received $343 Mil from issuing more debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It received $0 Mil from paying cash dividends to shareholders. It spent $1 Mil on other financial activities. In all, CarMax Inc earned $267 Mil on financial activities for the three months ended in Feb. 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.

CarMax Inc's Cash from Financing for the fiscal year that ended in Feb. 2017 is calculated as:

Cash from Financing(A: Feb. 2017 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-504.468+1454.309+0+0+-15.108
=935

CarMax Inc's Cash from Financing for the quarter that ended in Feb. 2017 is

Cash from Financing(Q: Feb. 2017 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-74.67+342.959+0+0+-1.213
=267

CarMax Inc Cash Flow from Financing for the trailing twelve months (TTM) ended in Feb. 2017 was 53.067 (May. 2016 ) + 527.568 (Aug. 2016 ) + 87.022 (Nov. 2016 ) + 267.076 (Feb. 2017 ) = $935 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.

CarMax Inc's net issuance of stock for the three months ended in Feb. 2017 was $-75 Mil. CarMax Inc paid $75 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.

CarMax Inc's net issuance of debt for the three months ended in Feb. 2017 was $343 Mil. CarMax Inc received $343 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.

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

CarMax Inc's cash flow for dividends for the three months ended in Feb. 2017 was $0 Mil. CarMax Inc received $0 Mil from paying cash dividends to shareholders.

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

CarMax Inc's other financing for the three months ended in Feb. 2017 was $-1 Mil. CarMax Inc spent $1 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.

CarMax Inc Annual Data

Feb08Feb09Feb10Feb11Feb12Feb13Feb14Feb15Feb16Feb17
Net Issuance of Stock 1510313816-140-268-835-937-504
Net Issuance of Debt 1498-186666701,1701,3941,5321,4621,454
Net Issuance of Preferred 0000000000
Dividends 0000000000
Other Financing 704-2-31033113-15
Cash from Financing 17118-1511026831,0401,128729537935

CarMax Inc Quarterly Data

Nov14Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17
Net Issuance of Stock -305-193-100-232-439-166-134-99-197-75
Net Issuance of Debt 57229838129274543192629290343
Net Issuance of Preferred 0000000000
Dividends 0000000000
Other Financing -11122-7-1-2-5-3-6-1
Cash from Financing 26611630453305-1245352887267
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