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Red Hat Inc (NYSE:RHT)
Cash from Financing
$151 Mil (TTM As of Nov. 2014)

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 Nov. 2014, Red Hat Inc paid $375 Mil more to buy back shares than it received from issuing new shares. It received $642 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 received $62 Mil on other financial activities. In all, Red Hat Inc earned $329 Mil on financial activities for the three months ended in Nov. 2014.


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.

Red Hat Inc's Cash from Financing for the fiscal year that ended in Feb. 2014 is calculated as:

Cash from Financing(A: Feb. 2014 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-239.363+-1.304+0+0+-22.443
=-263

Red Hat Inc's Cash from Financing for the quarter that ended in Nov. 2014 is

Cash from Financing(Q: Nov. 2014 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-375+641.952+0+0+61.975
=329

Red Hat Inc Cash Flow from Financing for the trailing twelve months (TTM) ended in Nov. 2014 was -0.028 (Feb. 2014 ) + -93.086 (May. 2014 ) + -84.427 (Aug. 2014 ) + 328.927 (Nov. 2014 ) = $151 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own 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.

Red Hat Inc's net issuance of stock for the three months ended in Nov. 2014 was $-375 Mil. Red Hat Inc paid $375 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.

Red Hat Inc's net issuance of debt for the three months ended in Nov. 2014 was $642 Mil. Red Hat Inc received $642 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.

Red Hat Inc's net issuance of preferred for the three months ended in Nov. 2014 was $0 Mil. Red Hat 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.

Red Hat Inc's cash flow for dividends for the three months ended in Nov. 2014 was $0 Mil. Red Hat Inc received $0 Mil from paying cash dividends to shareholders.

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

Red Hat Inc's other financing for the three months ended in Nov. 2014 was $62 Mil. Red Hat Inc received $62 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 own currency.

Red Hat Inc Annual Data

Feb05Feb06Feb07Feb08Feb09Feb10Feb11Feb12Feb13Feb14
Net Issuance of Stock -823224-67-40-236-116-170-171-239
Net Issuance of Debt -1-2602-566-13-1-1-1-1
Net Issuance of Preferred 0000000000
Dividends 0000000000
Other Financing -001677671391274746-22
Cash from Financing -8364012-539-11010-124-126-263

Red Hat Inc Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
Net Issuance of Stock -3-52-86-190-24-400-94-80-375
Net Issuance of Debt -0-0-0-0-0-0-0-0-2642
Net Issuance of Preferred 0000000000
Dividends 0000000000
Other Financing 8-115333-1501-362
Cash from Financing 5-63-33-187-21-55-0-93-84329
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