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GuruFocus has detected 7 Warning Signs with Royal Dutch Shell PLC $RDS.A.
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Royal Dutch Shell PLC (NYSE:RDS.A)
Cash Flow from Financing
$-771 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, Royal Dutch Shell PLC paid $0 Mil more to buy back shares than it received from issuing new shares. It spent $3,115 Mil paying down its debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $2,323 Mil paying cash dividends to shareholders. It spent $1,029 Mil on other financial activities. In all, Royal Dutch Shell PLC spent $6,467 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.

Royal Dutch Shell PLC'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
=0+11074+0+-9677+-2168
=-771

Royal Dutch Shell PLC'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
=0+-3115+0+-2323+-1029
=-6,467

Royal Dutch Shell PLC Cash Flow from Financing for the trailing twelve months (TTM) ended in Dec. 2016 was -3241 (Mar. 2016 ) + 7578 (Jun. 2016 ) + 1359 (Sep. 2016 ) + -6467 (Dec. 2016 ) = $-771 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.

Royal Dutch Shell PLC's net issuance of stock for the three months ended in Dec. 2016 was $0 Mil. Royal Dutch Shell PLC paid $0 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.

Royal Dutch Shell PLC's net issuance of debt for the three months ended in Dec. 2016 was $-3,115 Mil. Royal Dutch Shell PLC spent $3,115 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.

Royal Dutch Shell PLC's net issuance of preferred for the three months ended in Dec. 2016 was $0 Mil. Royal Dutch Shell PLC 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.

Royal Dutch Shell PLC's cash flow for dividends for the three months ended in Dec. 2016 was $-2,323 Mil. Royal Dutch Shell PLC spent $2,323 Mil paying cash dividends to shareholders.

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

Royal Dutch Shell PLC's other financing for the three months ended in Dec. 2016 was $-1,029 Mil. Royal Dutch Shell PLC spent $1,029 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.

Royal Dutch Shell PLC Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Net Issuance of Stock -3,511-3,048270-1,106-1,492-5,000-3,328-4090
Net Issuance of Debt 1,3144,82610,7019,256-7,124-175,39535714,89111,074
Net Issuance of Preferred 0000000000
Dividends -9,001-9,516-10,717-9,584-6,877-7,390-7,198-9,444-9,370-9,677
Other Financing -8,195-1,656-840-1,139-3,024-1,731-2,175-375-1,300-2,168
Cash from Financing -19,393-9,394-829-1,467-18,131-10,630-8,978-12,7903,812-771

Royal Dutch Shell PLC Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Net Issuance of Stock -770-971-4090000000
Net Issuance of Debt -3573,257-1338,9292,7093,386-83210,3704,651-3,115
Net Issuance of Preferred 0000000000
Dividends -2,994-2,987-2,932-2,294-2,362-1,782-2,258-2,436-2,660-2,323
Other Financing -360624-47275-558-345-151-356-632-1,029
Cash from Financing -4,481-77-3,9466,710-2111,259-3,2417,5781,359-6,467
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