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Procter & Gamble Co  (NYSE:PG) Cash Flow from Investing: $-6,102 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 three months ended in Sep. 2017, Procter & Gamble Co spent $1,132 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 $1,942 Mil on purchasing investments. It gained $388 Mil from selling investments. It paid $0Mil for net Intangibles purchase and sale. And it received $152 Mil from other investing activities. In all, Procter & Gamble Co spent $2,534 Mil on investment activities in financial market and operating subsidiaries for the three 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.

Procter & Gamble Co Annual Data

Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17
Cash Flow from Investing Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6,295.00 -4,100.00 -2,890.00 -5,575.00 -5,689.00

Procter & Gamble Co Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 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 -2,121.00 100.00 -1,802.00 -1,866.00 -2,534.00

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.

Procter & Gamble Co's Cash Flow from Investing for the fiscal year that ended in Jun. 2017 is calculated as:

Procter & Gamble Co's Cash Flow from Investing for the quarter that ended in Sep. 2017 is calculated as:


Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2017 was 100 (Dec. 2016 ) + -1802 (Mar. 2017 ) + -1866 (Jun. 2017 ) + -2534 (Sep. 2017 ) = $-6,102 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.

Procter & Gamble Co's purchase of property, plant, equipment for the three months ended in Sep. 2017 was $-1,132 Mil. It means Procter & Gamble Co spent $1,132 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.

Procter & Gamble Co's sale of property, plant, equipment for the three months ended in Sep. 2017 was $0 Mil. It means Procter & Gamble Co gained $0 Mil from selling property, plant, and equipment.

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

Procter & Gamble Co's purchase of business for the three months ended in Sep. 2017 was $0 Mil. It means Procter & Gamble Co spent $0 Mil on purchasing business.

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

Procter & Gamble Co's sale of business for the three months ended in Sep. 2017 was $0 Mil. It means Procter & Gamble Co gained $0 Mil from selling business.

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

Procter & Gamble Co's purchase of investment for the three months ended in Sep. 2017 was $-1,942 Mil. It means Procter & Gamble Co spent {stock_data.stock.currency_symbol}}1,942 Mil on purchasing investments.

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

Procter & Gamble Co's sale of investment for the three months ended in Sep. 2017 was $388 Mil. It means Procter & Gamble Co gained $388 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.

Procter & Gamble Co's net Intangibles purchase and sale for the three months ended in Sep. 2017 was $0 Mil. It means Procter & Gamble Co 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.

Procter & Gamble Co's cash from discontinued investing activities for the three months ended in Sep. 2017 was 0 Mil. It means Procter & Gamble Co 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.

Procter & Gamble Co's cash from other investing activities for the three months ended in Sep. 2017 was $152 Mil. It means Procter & Gamble Co received $152 Mil from other investing activities.


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