What is Forest Laboratories Cash Flow from Investing?
Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
For the
three
months ended in Mar. 2014, Forest Laboratoriesspent€30 Mil on purchasing property, plant, equipment.
It gained€0 Mil from selling property, plant, and equipment.
It spent€0 Mil on purchasing business.
It gained€0 Mil from selling business.
It spent€277 Mil on purchasing investments.
It gained€726 Mil from selling investments.
It paid€167Mil for net Intangibles purchase and sale.
And it paid€2,099 Mil for other investing activities.
In all, Forest Laboratoriesspent€1,848 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Mar. 2014.
Forest Laboratories Cash Flow from Investing Historical Data
The historical data trend for Forest Laboratories's Cash Flow from Investing can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Forest Laboratories Cash Flow from Investing Chart
Forest Laboratories Cash Flow from Investing Calculation
Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).
Likewise, if a company buys another company for cash, this will reduce their cash position.
Forest Laboratories's Cash Flow from Investing for the fiscal year that ended in Mar. 2014 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2014 adds up the quarterly data reported by the company within the most recent 12 months, which was €-2,010 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Forest Laboratories (FRA:FQX) Cash Flow from Investing Explanation
Forest Laboratories's purchase of property, plant, equipment for the
three
months ended in Mar. 2014 was €-30 Mil. It means Forest Laboratories spent €30 Mil on purchasing property, plant, equipment.
In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.
In Warren Buffett's definition of Owner's Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
Forest Laboratories's sale of property, plant, equipment for the
three
months ended in Mar. 2014 was €0 Mil. It means Forest Laboratories gained €0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Forest Laboratories's purchase of business for the
three
months ended in Mar. 2014 was €0 Mil. It means Forest Laboratories spent €0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Forest Laboratories's sale of business for the
three
months ended in Mar. 2014 was €0 Mil. It means Forest Laboratories gained €0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Forest Laboratories's purchase of investment for the
three
months ended in Mar. 2014 was €-277 Mil. It means Forest Laboratories spent {stock_data.stock.currency_symbol}}277 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Forest Laboratories's sale of investment for the
three
months ended in Mar. 2014 was €726 Mil. It means Forest Laboratories gained €726 Mil from selling investments.
7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.
Forest Laboratories's net Intangibles purchase and sale for the
three
months ended in Mar. 2014 was €-167 Mil.
It means Forest Laboratories paid €167 Mil for net Intangibles purchase and sale.
8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.
Forest Laboratories's cash from discontinued investing activities for the
three
months ended in Mar. 2014 was 0 Mil.
It means Forest Laboratories paid €0 Mil for discontinued investing activities.
9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.
Forest Laboratories's cash from other investing activities for the
three
months ended in Mar. 2014 was €-2,099 Mil.
It means Forest Laboratories paid €2,099 Mil for other investing activities.
Forest Laboratories Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of Forest Laboratories's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
Forest Laboratories (FRA:FQX) Business Description
Forest Laboratories, Inc. is a Delaware corporation organized in 1956. The Company develops, manufactures and sells branded forms of ethical drug products most of which require a physician's prescription. The Company's most important United States products are marketed directly, or 'detailed,' to physicians by its salesforces. It emphasizes detailing to physicians of those branded ethical drugs which have the most potential for growth and benefit to patients. The Company also develops and introduces new products, including products developed in collaboration with licensing partners. The Company's products include those developed by it and those acquired from other pharmaceutical companies and integrated into its marketing and distribution systems. It actively promotes in the United States those branded products which have the most potential for growth and patient benefit, and which enable its salesforces to concentrate on groups of physicians who are high prescribers of its products. Such products include: Lexapro, its SSRI for the treatment of major depression in adults and adolescents and GAD in adults; Namenda, its NMDA antagonist for the treatment of moderate and severe Alzheimer's disease; Bystolic, its beta-blocker for the treatment of hypertension; and Savella, its newest product, an SNRI for the management of fibromyalgia. The Company's United Kingdom and Ireland subsidiaries sell both ethical products and over-the-counter preparations. Their most important products include Sudocrem, a topical preparation for the treatment of diaper rash; Colomycin, an antibiotic used in the treatment of cystic fibrosis; Infacol, used to treat infant colic; and Exorex, used in the treatment of eczema and psoriasis. The pharmaceutical industry is subject to comprehensive government regulation which substantially increases the difficulty and cost incurred in obtaining the approval to market newly proposed drug products and maintaining the approval to market existing drugs.
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