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 Sep. 2016, LinkedInspent€268 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€607 Mil on purchasing investments.
It gained€534 Mil from selling investments.
It paid€14Mil for net Intangibles purchase and sale.
And it paid€0 Mil for other investing activities.
In all, LinkedInspent€355 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Sep. 2016.
LinkedIn Cash Flow from Investing Historical Data
The historical data trend for LinkedIn'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.
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.
LinkedIn's Cash Flow from Investing for the fiscal year that ended in Dec. 2015 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was €-1,037 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.
LinkedIn (FRA:LKI) Cash Flow from Investing Explanation
LinkedIn's purchase of property, plant, equipment for the
three
months ended in Sep. 2016 was €-268 Mil. It means LinkedIn spent €268 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)."
LinkedIn's sale of property, plant, equipment for the
three
months ended in Sep. 2016 was €0 Mil. It means LinkedIn gained €0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
LinkedIn's purchase of business for the
three
months ended in Sep. 2016 was €0 Mil. It means LinkedIn spent €0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
LinkedIn's sale of business for the
three
months ended in Sep. 2016 was €0 Mil. It means LinkedIn gained €0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
LinkedIn's purchase of investment for the
three
months ended in Sep. 2016 was €-607 Mil. It means LinkedIn spent {stock_data.stock.currency_symbol}}607 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
LinkedIn's sale of investment for the
three
months ended in Sep. 2016 was €534 Mil. It means LinkedIn gained €534 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.
LinkedIn's net Intangibles purchase and sale for the
three
months ended in Sep. 2016 was €-14 Mil.
It means LinkedIn paid €14 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.
LinkedIn's cash from discontinued investing activities for the
three
months ended in Sep. 2016 was 0 Mil.
It means LinkedIn 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.
LinkedIn's cash from other investing activities for the
three
months ended in Sep. 2016 was €-0 Mil.
It means LinkedIn paid €0 Mil for other investing activities.
LinkedIn Cash Flow from Investing Related Terms
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LinkedIn Corp was incorporated in Delaware on March 6, 2003, under the name LinkedIn, Ltd. and changed its name to LinkedIn Corporation in January 2005. The Company operates an online professional network on the Internet through which the Company's members are able to create, manage and share their professional identities online, build and engage with their professional networks, access shared knowledge and insights, and find business opportunities, enabling them to be more productive and successful. The Company currently has approximately over 400 million members in over 200 countries and territories. The Company offers free solutions including Stay Connected & Informed, Advance My Career and Ubiquitous Access; and Monetized Solutions including Talent Solutions, Marketing Solutions, and Premium Subscriptions. Its comprehensive platform provides members with solutions, including applications and tools, to search, connect and communicate with business contacts, learn about attractive career opportunities, join industry groups, research organizations and share information. The Company provides the following key benefits to their members: ability to manage their professional identity, enhanced ability to build and engage with their professional network, access to knowledge, insights and opportunities, aid in matching talent with opportunity, an efficient marketing channel, targeted advertising, and an increase in employee productivity. In addition, its core value of putting members first may conflict with the short-term interests of its business, the number of its registered members is higher than the number of actual members, and a substantial majority of its page views are generated by a minority of its members. Finally, it expects to face increasing competition in the market for online professional networks. The Company is subject to a number of foreign and domestic laws and regulations that affect companies conducting business online, many of which are still evolving and could be interpreted in ways that could harm its business.
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