Switch to:
GuruFocus has detected 5 Warning Signs with HollyFrontier Corp $HFC.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
HollyFrontier Corp (NYSE:HFC)
Cash Flow from Investing
$-1,269 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, HollyFrontier Corp spent $60 Mil on purchasing property, plant, equipment. It gained $0 Mil from selling property, plant, and equipment. It spent $840 Mil on purchasing business. It gained $0 Mil from selling business. It spent $42 Mil on purchasing investments. It gained $466 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 $3 Mil from other investing activities. In all, HollyFrontier Corp spent $473 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.

HollyFrontier Corp's Cash Flow from Investing for the fiscal year that ended in Dec. 2016 is calculated as:

HollyFrontier Corp's Cash Flow from Investing for the quarter that ended in Mar. 2017 is calculated as:

HollyFrontier Corp Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2017 was -264.143 (Jun. 2016 ) + -127.818 (Sep. 2016 ) + -404.443 (Dec. 2016 ) + -473.016 (Mar. 2017 ) = $-1,269 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.

HollyFrontier Corp's purchase of property, plant, equipment for the three months ended in Mar. 2017 was $-60 Mil. It means HollyFrontier Corp spent $60 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.

HollyFrontier Corp's sale of property, plant, equipment for the three months ended in Mar. 2017 was $0 Mil. It means HollyFrontier Corp gained $0 Mil from selling property, plant, and equipment.

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

HollyFrontier Corp's purchase of business for the three months ended in Mar. 2017 was $-840 Mil. It means HollyFrontier Corp spent $840 Mil on purchasing business.

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

HollyFrontier Corp's sale of business for the three months ended in Mar. 2017 was $0 Mil. It means HollyFrontier Corp gained $0 Mil from selling business.

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

HollyFrontier Corp's purchase of investment for the three months ended in Mar. 2017 was $-42 Mil. It means HollyFrontier Corp spent $42 Mil on purchasing investments.

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

HollyFrontier Corp's sale of investment for the three months ended in Mar. 2017 was $466 Mil. It means HollyFrontier Corp gained $466 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.

HollyFrontier Corp's net Intangibles purchase and sale for the three months ended in Mar. 2017 was $0 Mil. It means HollyFrontier Corp 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.

HollyFrontier Corp's cash from discontinued investing activities for the three months ended in Mar. 2017 was $0 Mil. It means HollyFrontier Corp 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.

HollyFrontier Corp's cash from other investing activities for the three months ended in Mar. 2017 was $3 Mil. It means HollyFrontier Corp received $3 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.

HollyFrontier Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
PurchaseOfPPE -161-418-303-213-374-335-425-565-676-480
SaleOfPPE 0171000081700
PurchaseOfBusiness 00-293000-110-55-43
SaleOfBusiness 01332087300000
PurchaseOfInvestment -641-769-2010-571-672-936-1,026-509-547
SaleOfInvestment 50994523003012988461,276840267
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 00000-2-95191
Cash Flow from Investing -293-58-535-213228-711-527-292-382-802

HollyFrontier Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
PurchaseOfPPE -196-173-144-157-202-150-140-97-92-60
SaleOfPPE 0100000000
PurchaseOfBusiness 000000000-840
SaleOfBusiness 0000000000
PurchaseOfInvestment -263-119-127-157-106-4-125-26-392-42
SaleOfInvestment 41317914916334914813879466
NetIntangiblesPurchaseAndSale 0000000000
CashFromDiscontinuedInvestingActivities 0000000000
CashFromOtherInvestingActivities 201-41300-4203
Cash Flow from Investing -44-112-121-19244-5-264-128-404-473
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)

GF Chat

{{numOfNotice}}
FEEDBACK