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GuruFocus has detected 4 Warning Signs with Time Warner Inc $TWX.
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Time Warner Inc (NYSE:TWX)
Cash Flow from Financing
$-3,922 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, Time Warner Inc paid $203 Mil more to buy back shares than it received from issuing new shares. It spent $112 Mil paying down its debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $315 Mil paying cash dividends to shareholders. It spent $910 Mil on other financial activities. In all, Time Warner Inc spent $1,540 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.

Time Warner Inc'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
=-2322+526+0+-1269+-857
=-3,922

Time Warner Inc'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
=-203+-112+0+-315+-910
=-1,540

Time Warner Inc Cash Flow from Financing for the trailing twelve months (TTM) ended in Dec. 2016 was -1213 (Mar. 2016 ) + -198 (Jun. 2016 ) + -971 (Sep. 2016 ) + -1540 (Dec. 2016 ) = $-3,922 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.

Time Warner Inc's net issuance of stock for the three months ended in Dec. 2016 was $-203 Mil. Time Warner Inc paid $203 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.

Time Warner Inc's net issuance of debt for the three months ended in Dec. 2016 was $-112 Mil. Time Warner Inc spent $112 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.

Time Warner Inc's net issuance of preferred for the three months ended in Dec. 2016 was $0 Mil. Time Warner 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.

Time Warner Inc's cash flow for dividends for the three months ended in Dec. 2016 was $-315 Mil. Time Warner Inc spent $315 Mil paying cash dividends to shareholders.

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

Time Warner Inc's other financing for the three months ended in Dec. 2016 was $-910 Mil. Time Warner Inc spent $910 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.

Time Warner Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Net Issuance of Stock -6,231-332-1,158-2,016-4,611-3,272-3,708-5,504-3,632-2,322
Net Issuance of Debt 2,167-1,564-6,4853192,9573532662,3371,424526
Net Issuance of Preferred 0000000000
Dividends -871-901-897-971-997-1,011-1,074-1,109-1,150-1,269
Other Financing 4464,116-5,255-2561181,09973333345-857
Cash from Financing -4,4891,319-13,795-2,924-2,533-2,831-3,783-3,943-3,313-3,922

Time Warner Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Net Issuance of Stock -1,605-1,023-890-914-1,226-602-711-696-712-203
Net Issuance of Debt -1-48-51,307-766888-1507880-112
Net Issuance of Preferred 0000000000
Dividends -273-268-294-290-285-281-322-318-314-315
Other Financing 11274-423422-302855-910
Cash from Financing -1,767-1,265-1,193126-2,27327-1,213-198-971-1,540
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