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 Dec. 2016, Air Methodsspent$22 Mil on purchasing property, plant, equipment.
It gained$4 Mil from selling property, plant, and equipment.
It spent$0 Mil on purchasing business.
It gained$0 Mil from selling business.
It spent$0 Mil on purchasing investments.
It gained$0 Mil from selling investments.
It paid$0Mil for net Intangibles purchase and sale.
And it paid$0 Mil for other investing activities.
In all, Air Methodsspent$18 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2016.
Air Methods Cash Flow from Investing Historical Data
The historical data trend for Air Methods'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.
Air Methods's Cash Flow from Investing for the fiscal year that ended in Dec. 2016 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $-328 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.
Air Methods (NAS:AIRM) Cash Flow from Investing Explanation
Air Methods's purchase of property, plant, equipment for the
three
months ended in Dec. 2016 was $-22 Mil. It means Air Methods spent $22 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)."
Air Methods's sale of property, plant, equipment for the
three
months ended in Dec. 2016 was $4 Mil. It means Air Methods gained $4 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Air Methods's purchase of business for the
three
months ended in Dec. 2016 was $-0 Mil. It means Air Methods spent $0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Air Methods's sale of business for the
three
months ended in Dec. 2016 was $0 Mil. It means Air Methods gained $0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Air Methods's purchase of investment for the
three
months ended in Dec. 2016 was $0 Mil. It means Air Methods spent {stock_data.stock.currency_symbol}}0 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Air Methods's sale of investment for the
three
months ended in Dec. 2016 was $0 Mil. It means Air Methods gained $0 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.
Air Methods's net Intangibles purchase and sale for the
three
months ended in Dec. 2016 was $0 Mil.
It means Air Methods 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.
Air Methods's cash from discontinued investing activities for the
three
months ended in Dec. 2016 was 0 Mil.
It means Air Methods 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.
Air Methods's cash from other investing activities for the
three
months ended in Dec. 2016 was $-0 Mil.
It means Air Methods paid $0 Mil for other investing activities.
Air Methods Cash Flow from Investing Related Terms
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Air Methods Corp is a Delaware corporation, was established in Colorado in 1982. The Company provides air medical emergency transport services and systems throughout the United States of America. It designs, manufactures, and installs medical aircraft interiors and other aerospace and medical transport products. The Company also provides tourism operations in and around the Grand Canyon and Hawaiian Islands. The Company's operating segments include Air Medical Services, Tourism Division and United Rotorcraft. Air Medical Services provides air medical transportation services to the general population as an independent service and to hospitals or other institutions under exclusive operating agreements. The division operates 380 helicopters and 26 fixed wing aircraft under both Instrument Flight Rules and Visual Flight Rules. Tourism Division provides helicopter tours and charter flights, mainly focusing on Grand Canyon and Hawaiian Island tours. The division operates 48 helicopters under two Part 135 Air Carrier Certificates. United Rotorcraft Division designs, manufactures, and installs aircraft medical interiors and other aerospace and medical transport products for domestic and international customers. The Company maintains patents covering several products, including the Litter Lift System used in the U.S. Army's HH-60M helicopter and Medical Evacuation Vehicle, and the Articulating Patient Loading System and Modular Equipment Frame developed as part of the modular interior concept. The Company competes with several national and regional air medical transportation providers for contracts with hospitals and other healthcare institutions. It also competes with larger aerial tourism operators in the Grand Canyon market and a number of smaller operators in both the Grand Canyon and Hawaiian Island markets. The Company is subject to the Federal Aviation Act of 1958. All of its flight and maintenance operations-including equipment, ground facilities, dispatch, communications, flight training personnel and other matters affecting air safety are regulated and actively supervised by the U.S. Department of Transportation through the FAA. It is also subject to laws, regulations, and standards relating to corporate governance and public disclosure, including the Sarbanes-Oxley Act of 2002, Dodd-Frank Wall Street Reform and Consumer Protection Act, Securities and Exchange Commission (SEC) regulations, NASDAQ Stock Market rules, and other federal and state securities laws.
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