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National Grid PLC  (NYSE:NGG) Cash Flow from Investing: $-5,326 Mil (TTM As of Sep. 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 six months ended in Sep. 2017, National Grid PLC spent $2,357 Mil on purchasing property, plant, equipment. It gained $3 Mil from selling property, plant, and equipment. It spent $103 Mil on purchasing business. It gained $0 Mil from selling business. It spent $1 Mil on purchasing investments. It gained $0 Mil from selling investments. It paid $97Mil for net Intangibles purchase and sale. And it received $8,208 Mil from other investing activities. In all, National Grid PLC gained $5,652 Mil on investment activities in financial market and operating subsidiaries for the six months ended in Sep. 2017.


Historical Data

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

* Premium members only.

National Grid PLC Annual Data

Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Cash Flow from Investing Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9,245.85 -2,209.30 -2,991.03 -5,749.29 -5,325.93

National Grid PLC Semi-Annual Data

Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17
Cash Flow from Investing Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2,072.09 -3,824.79 -2,706.96 -2,782.72 5,652.00

Calculation

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.

National Grid PLC's Cash Flow from Investing for the fiscal year that ended in Mar. 2017 is calculated as:

National Grid PLC's Cash Flow from Investing for the quarter that ended in Sep. 2017 is calculated as:


For stock reported semi-annually, GuruFocus uses latest annual data as the TTM data. Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2017 was $-5,326 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.

National Grid PLC's purchase of property, plant, equipment for the six months ended in Sep. 2017 was $-2,357 Mil. It means National Grid PLC spent $2,357 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.

National Grid PLC's sale of property, plant, equipment for the six months ended in Sep. 2017 was $3 Mil. It means National Grid PLC gained $3 Mil from selling property, plant, and equipment.

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

National Grid PLC's purchase of business for the six months ended in Sep. 2017 was $-103 Mil. It means National Grid PLC spent $103 Mil on purchasing business.

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

National Grid PLC's sale of business for the six months ended in Sep. 2017 was $0 Mil. It means National Grid PLC gained $0 Mil from selling business.

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

National Grid PLC's purchase of investment for the six months ended in Sep. 2017 was $-1 Mil. It means National Grid PLC spent {stock_data.stock.currency_symbol}}1 Mil on purchasing investments.

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

National Grid PLC's sale of investment for the six months ended in Sep. 2017 was $0 Mil. It means National Grid PLC 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.

National Grid PLC's net Intangibles purchase and sale for the six months ended in Sep. 2017 was $-97 Mil. It means National Grid PLC paid $97 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.

National Grid PLC's cash from discontinued investing activities for the six months ended in Sep. 2017 was 0 Mil. It means National Grid PLC 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.

National Grid PLC's cash from other investing activities for the six months ended in Sep. 2017 was $8,208 Mil. It means National Grid PLC received $8,208 Mil from other investing activities.


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