Switch to:
GuruFocus has detected 5 Warning Signs with E.I. du Pont de Nemours & Co $DD.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
E.I. du Pont de Nemours & Co (NYSE:DD)
Cash Flow from Investing
$-2,876 Mil (TTM As of Mar. 2017)

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. 2017, E.I. du Pont de Nemours & Co spent $330 Mil on purchasing property, plant, equipment. It gained $0 Mil from selling property, plant, and equipment. It spent $22 Mil on purchasing business. It gained $0 Mil from selling business. It spent $2,073 Mil on purchasing investments. It gained $868 Mil from selling investments. It paid $0 Mil for net Intangibles purchase and sale. It paid $0 Mil for discontinued investing activities. And it received $222 Mil from other investing activities. In all, E.I. du Pont de Nemours & Co spent $1,335 Mil on investment activities in financial market and operating subsidiaries for the three months ended in Mar. 2017.


Definition

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.

E.I. du Pont de Nemours & Co's Cash Flow from Investing for the fiscal year that ended in Dec. 2016 is calculated as:

E.I. du Pont de Nemours & Co's Cash Flow from Investing for the quarter that ended in Mar. 2017 is calculated as:

E.I. du Pont de Nemours & Co Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2017 was -445 (Jun. 2016 ) + -657 (Sep. 2016 ) + -439 (Dec. 2016 ) + -1335 (Mar. 2017 ) = $-2,876 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

Cash flow from investing contains nine items:

1. Purchase Of Property, Plant, Equipment:
Purchase of PPE indicates the amount used to purchase property, plant, and equipment.

E.I. du Pont de Nemours & Co's purchase of property, plant, equipment for the three months ended in Mar. 2017 was $-330 Mil. It means E.I. du Pont de Nemours & Co spent $330 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)."

2. Sale Of Property, Plant, Equipment:
Sale of PPE indicates the amount gained from selling property, plant, and equipment.

E.I. du Pont de Nemours & Co's sale of property, plant, equipment for the three months ended in Mar. 2017 was $0 Mil. It means E.I. du Pont de Nemours & Co gained $0 Mil from selling property, plant, and equipment.

3. Purchase Of Business:
Purchase of business indicates the amount used to purchase business.

E.I. du Pont de Nemours & Co's purchase of business for the three months ended in Mar. 2017 was $-22 Mil. It means E.I. du Pont de Nemours & Co spent $22 Mil on purchasing business.

4. Sale Of Business:
Sale of business indicates the amount gained from selling business.

E.I. du Pont de Nemours & Co's sale of business for the three months ended in Mar. 2017 was $0 Mil. It means E.I. du Pont de Nemours & Co gained $0 Mil from selling business.

5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.

E.I. du Pont de Nemours & Co's purchase of investment for the three months ended in Mar. 2017 was $-2,073 Mil. It means E.I. du Pont de Nemours & Co spent $2,073 Mil on purchasing investments.

6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.

E.I. du Pont de Nemours & Co's sale of investment for the three months ended in Mar. 2017 was $868 Mil. It means E.I. du Pont de Nemours & Co gained $868 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.

E.I. du Pont de Nemours & Co's net Intangibles purchase and sale for the three months ended in Mar. 2017 was $0 Mil. It means E.I. du Pont de Nemours & Co paid $0 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.

E.I. du Pont de Nemours & Co's cash from discontinued investing activities for the three months ended in Mar. 2017 was $0 Mil. It means E.I. du Pont de Nemours & Co 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.

E.I. du Pont de Nemours & Co's cash from other investing activities for the three months ended in Mar. 2017 was $222 Mil. It means E.I. du Pont de Nemours & Co received $222 Mil from other investing activities.


Related Terms

Cash Flow from Operations, Cash Flow from Financing, Cash Flow for Capital Expenditures, Purchase of PPE, Sale of PPE, Purchase of Business, Sale of Business, Purchase of Investment, Sale of Investment, Net Intangibles Purchase And Sale, Cash From Discontinued Investing, Cash From Other Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

E.I. du Pont de Nemours & Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
PurchaseOfPPE -1,585-1,978-1,308-1,508-1,843-1,793-1,882-2,020-1,629-1,019
SaleOfPPE 25150910000000
PurchaseOfBusiness 0-199-137-637-6,526-115-1330-1520
SaleOfBusiness 0000004,8411,092156316
PurchaseOfInvestment -152-55-3,067-100-67-650-555-978-1,973-2,652
SaleOfInvestment 040002,1499654529501,1212,181
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities -264532123-19449247222619649-340
Cash Flow from Investing -1,750-1,610-4,298-2,439-6,238-1,3462,945-337-1,828-1,514

E.I. du Pont de Nemours & Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
PurchaseOfPPE -709-565-373-353-338-357-150-252-260-330
SaleOfPPE 0000000000
PurchaseOfBusiness 00000-11-22-22
SaleOfBusiness 0000000000
PurchaseOfInvestment -88-170-469-289-1,045-95-416-951-1,190-2,073
SaleOfInvestment 51912542509445377306611887868
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 661470-4371155103-186-63122222
Cash Flow from Investing 383-140-843-62-78327-445-657-439-1,335
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK