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. 2023, CVS Health spentUSD911 Mil on purchasing property, plant, equipment.
It gainedUSD0 Mil from selling property, plant, and equipment.
It spentUSD120 Mil on purchasing business.
It gainedUSD0 Mil from selling business.
It spentUSD2,418 Mil on purchasing investments.
It gainedUSD2,182 Mil from selling investments.
It paidUSD0Mil for net Intangibles purchase and sale.
And it receivedUSD25 Mil from other investing activities.
In all, CVS Health
spentUSD1,242 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2023.
CVS Health Cash Flow from Investing Historical Data
The historical data trend for CVS Health'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.
CVS Health's Cash Flow from Investing for the fiscal year that ended in Dec. 2023 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was USD-20,889 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.
CVS Health (NYSE:CVS) Cash Flow from Investing Explanation
CVS Health's purchase of property, plant, equipment for the
three
months ended in Dec. 2023 was USD-911 Mil. It means CVS Health spent USD911 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)."
CVS Health's sale of property, plant, equipment for the
three
months ended in Dec. 2023 was USD0 Mil. It means CVS Health gained USD0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
CVS Health's purchase of business for the
three
months ended in Dec. 2023 was USD-120 Mil. It means CVS Health spent USD120 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
CVS Health's sale of business for the
three
months ended in Dec. 2023 was USD0 Mil. It means CVS Health gained USD0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
CVS Health's purchase of investment for the
three
months ended in Dec. 2023 was USD-2,418 Mil. It means CVS Health spent {stock_data.stock.currency_symbol}}2,418 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
CVS Health's sale of investment for the
three
months ended in Dec. 2023 was USD2,182 Mil. It means CVS Health gained USD2,182 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.
CVS Health's net Intangibles purchase and sale for the
three
months ended in Dec. 2023 was USD0 Mil.
It means CVS Health paid USD0 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.
CVS Health's cash from discontinued investing activities for the
three
months ended in Dec. 2023 was 0 Mil.
It means CVS Health paid USD0 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.
CVS Health's cash from other investing activities for the
three
months ended in Dec. 2023 was USD25 Mil.
It means CVS Health received USD25 Mil from other investing activities.
CVS Health Cash Flow from Investing Related Terms
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CVS Health offers a diverse set of healthcare services. Its roots are in its retail pharmacy operations, where it operates over 9,000 stores primarily in the U.S. CVS is also the largest pharmacy benefit manager (acquired through Caremark), processing over 2 billion adjusted claims annually. It also operates a top-tier health insurer (acquired through Aetna) where it serves about 26 million medical members. The company's recent acquisition of Oak Street adds primary care services to the mix, which could have significant synergies with all its existing business lines.
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