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. 2015, Health Netspent$15 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$114 Mil on purchasing investments.
It gained$96 Mil from selling investments.
It paid$0Mil for net Intangibles purchase and sale.
And it paid$1 Mil for other investing activities.
In all, Health Netspent$34 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2015.
Health Net Cash Flow from Investing Historical Data
The historical data trend for Health Net'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.
Health Net'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 Dec. 2015 adds up the quarterly data reported by the company within the most recent 12 months, which was $-547 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.
Health Net (NYSE:HNT) Cash Flow from Investing Explanation
Health Net's purchase of property, plant, equipment for the
three
months ended in Dec. 2015 was $-15 Mil. It means Health Net spent $15 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)."
Health Net's sale of property, plant, equipment for the
three
months ended in Dec. 2015 was $0 Mil. It means Health Net gained $0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Health Net's purchase of business for the
three
months ended in Dec. 2015 was $0 Mil. It means Health Net spent $0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Health Net's sale of business for the
three
months ended in Dec. 2015 was $0 Mil. It means Health Net gained $0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Health Net's purchase of investment for the
three
months ended in Dec. 2015 was $-114 Mil. It means Health Net spent {stock_data.stock.currency_symbol}}114 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Health Net's sale of investment for the
three
months ended in Dec. 2015 was $96 Mil. It means Health Net gained $96 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.
Health Net's net Intangibles purchase and sale for the
three
months ended in Dec. 2015 was $0 Mil.
It means Health Net 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.
Health Net's cash from discontinued investing activities for the
three
months ended in Dec. 2015 was 0 Mil.
It means Health Net 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.
Health Net's cash from other investing activities for the
three
months ended in Dec. 2015 was $-1 Mil.
It means Health Net paid $1 Mil for other investing activities.
Health Net Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of Health Net's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
Health Net Inc was incorporated in the state of Delaware on 1990. The Company is an integrated managed care organization that delivers managed health care services. The Company's health plans and government contracts subsidiaries provide health benefits through its health maintenance organizations (HMOs), insured preferred provider organizations (PPOs) and point of service (POS). Its subsidiaries also offer managed health care products related to behavioral health and prescription drugs. The Company also owns health and life insurance companies licensed to sell exclusive provider organization (EPO), PPO, POS and indemnity products as well as auxiliary non-health products such as life and accidental death and dismemberment, dental, vision, behavioral health and disability insurance. These products are offered by its health and life insurance subsidiaries, which are licensed to sell insurance in approximately 49 states and the District of Columbia. It operates within three reportable segments: West Operations, Northeast Operations and Government Contracts. The Company's West Operations segment includes the operations of its commercial, Medicare and Medicaid health plans, the operations of its health and life insurance companies and its behavioral health and pharmaceutical services subsidiaries in Arizona, California and Oregon. The Company offers a full spectrum of managed health care products and services. It offers a range of Medicare products, including Medicare Advantage plans with and without prescription drug coverage, Medicare Part D stand-alone prescription drug plans ('PDP'), and Medicare supplement products that supplement traditional fee-for-service Medicare coverage. Its portfolio of Medicare Advantage plans focuses on simplicity so that members can sign up and use benefits with minimal paperwork and receive coverage that starts immediately upon enrollment. The Company provides ASO products to large employer groups in California. Its Government Contracts segment includes its TRICARE contract for the North Region and other health care-related government contracts that it administers for the U.S. Department of Defense (the 'Department of Defense') and the U.S. Department of Veterans Affairs. Certain components of these contracts are subcontracted to unrelated third parties. Its wholly-owned subsidiary, Health Net Federal Services, LLC ('HNFS'), administers a large managed care federal contract with the Department of Defense under the TRICARE program in the North Region. The Company maintains a network of qualified physicians, hospitals and other health care providers in each of the states in which it offers network based managed care products and services. It markets its products and services to individuals and employer groups through inside sales staff, independent brokers, agents and consultants and through the Internet. The Company operates in a highly competitive environment in an industry. Its health plans face subst
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