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, Newportspent$4.2 Mil on purchasing property, plant, equipment.
It gained$0.0 Mil from selling property, plant, and equipment.
It spent$0.0 Mil on purchasing business.
It gained$0.0 Mil from selling business.
It spent$0.3 Mil on purchasing investments.
It gained$0.8 Mil from selling investments.
It paid$0.0Mil for net Intangibles purchase and sale.
And it received$0.2 Mil from other investing activities.
In all, Newportspent$3.5 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2015.
Newport Cash Flow from Investing Historical Data
The historical data trend for Newport'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.
Newport'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 $-29.3 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.
Newport (NAS:NEWP) Cash Flow from Investing Explanation
Newport's purchase of property, plant, equipment for the
three
months ended in Dec. 2015 was $-4.2 Mil. It means Newport spent $4.2 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)."
Newport's sale of property, plant, equipment for the
three
months ended in Dec. 2015 was $0.0 Mil. It means Newport gained $0.0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Newport's purchase of business for the
three
months ended in Dec. 2015 was $0.0 Mil. It means Newport spent $0.0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Newport's sale of business for the
three
months ended in Dec. 2015 was $0.0 Mil. It means Newport gained $0.0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Newport's purchase of investment for the
three
months ended in Dec. 2015 was $-0.3 Mil. It means Newport spent {stock_data.stock.currency_symbol}}0.3 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Newport's sale of investment for the
three
months ended in Dec. 2015 was $0.8 Mil. It means Newport gained $0.8 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.
Newport's net Intangibles purchase and sale for the
three
months ended in Dec. 2015 was $0.0 Mil.
It means Newport paid $0.0 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.
Newport's cash from discontinued investing activities for the
three
months ended in Dec. 2015 was 0.0 Mil.
It means Newport paid $0.0 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.
Newport's cash from other investing activities for the
three
months ended in Dec. 2015 was $0.2 Mil.
It means Newport received $0.2 Mil from other investing activities.
Newport Cash Flow from Investing Related Terms
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Newport Corp was established in 1969 as Newport Research Corporation. In 1978, Newport Research Corporation merged into James Dole Corporation, an entity which was incorporated in Nevada in 1938, and the company was renamed Newport Corporation following the merger. The Company is a supplier of advanced technology products and systems to a wide range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. It also provides a broad portfolio of products to customers in these end markets, allowing it to offer them an end-to-end resource for photonics solutions. In January 2013, Company reorganized its operations to create three new operating groups: Photonics Group, Lasers Group and Optics Group. Its Lasers Group is substantially the same as former Lasers Division. Photonics Group is comprised of the photonics products and technologies of former PPT Division and Ophir Division. Optics Group is comprised of the optical components and integrated solutions products and technologies of former PPT Division and Ophir Division. Photonics Group's products and systems are sold to end users in all of target end markets. The products sold by this group include photonics instruments and systems, precision positioning systems and subsystems, vibration isolation systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment. Lasers Group offers a broad portfolio of laser technology products and services to OEM and end-user customers in all of target end markets. Its lasers and laser-based systems include ultrafast lasers and amplifiers, diode-pumped solid-state lasers, high-energy pulsed lasers, tunable lasers, fiber lasers and gas lasers. Optics Group offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors and ruled and holographic diffraction gratings to OEM and end-user customers in target end markets. This business was sold in January 2014. Its competitors include: Coherent, Inc., Sciencetech, Inc., Optometrics Corporation, Corning, Inc., among others. The Company's lasers and laser-based systems are subject to the laser radiation safety regulations of the Radiation Control for Health and Safety Act administered by the Center for Devices and Radiological Health of the United States Food and Drug Administration.
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