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GuruFocus has detected 9 Warning Signs with Microsoft Corp $MSFT.
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Microsoft Corp (NAS:MSFT)
Cash Flow from Financing
$13,400 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, Microsoft Corp paid $3,468 Mil more to buy back shares than it received from issuing new shares. It received $9,196 Mil from issuing more debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $3,024 Mil paying cash dividends to shareholders. It received $312 Mil on other financial activities. In all, Microsoft Corp earned $3,016 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.

Microsoft Corp's Cash from Financing for the fiscal year that ended in Jun. 2016 is calculated as:

Cash from Financing(A: Jun. 2016 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-15301+18283+0+-11006+-369
=-8,393

Microsoft Corp'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
=-3468+9196+0+-3024+312
=3,016

Microsoft Corp Cash Flow from Financing for the trailing twelve months (TTM) ended in Dec. 2016 was -4916 (Mar. 2016 ) + 971 (Jun. 2016 ) + 14329 (Sep. 2016 ) + 3016 (Dec. 2016 ) = $13,400 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.

Microsoft Corp's net issuance of stock for the three months ended in Dec. 2016 was $-3,468 Mil. Microsoft Corp paid $3,468 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.

Microsoft Corp's net issuance of debt for the three months ended in Dec. 2016 was $9,196 Mil. Microsoft Corp received $9,196 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.

Microsoft Corp's net issuance of preferred for the three months ended in Dec. 2016 was $0 Mil. Microsoft Corp 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.

Microsoft Corp's cash flow for dividends for the three months ended in Dec. 2016 was $-3,024 Mil. Microsoft Corp spent $3,024 Mil paying cash dividends to shareholders.

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

Microsoft Corp's other financing for the three months ended in Dec. 2016 was $312 Mil. Microsoft Corp received $312 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.

Microsoft Corp Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
Net Issuance of Stock -20,793-9,039-8,774-8,958-9,133-3,116-4,429-6,709-13,809-15,301
Net Issuance of Debt 005,7461905,96003,5376,96213,66118,283
Net Issuance of Preferred 0000000000
Dividends -3,805-4,015-4,468-4,578-5,180-6,385-7,455-8,879-9,882-11,006
Other Financing 541203355-2393199-39362-369
Cash from Financing -24,544-12,934-7,463-13,291-8,376-9,408-8,148-8,665-9,668-8,393

Microsoft Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Net Issuance of Stock -2,672-2,024-4,985-4,128-4,538-3,561-3,698-3,504-4,121-3,468
Net Issuance of Debt 1,4994,7984,1053,2593,2615,9761,7477,29921,3629,196
Net Issuance of Preferred 0000000000
Dividends -2,307-2,547-2,532-2,496-2,475-2,868-2,842-2,821-2,800-3,024
Other Financing 502307316-239-178-65-123-3-112312
Cash from Financing -2,978534-3,096-3,604-3,930-518-4,91697114,3293,016
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