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Tesco PLC  (OTCPK:TSCDY) Cash Flow from Investing: $349 Mil (TTM As of Aug. 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 Aug. 2017, Tesco PLC spent $931 Mil on purchasing property, plant, equipment. It gained $180 Mil from selling property, plant, and equipment. It spent $19 Mil on purchasing business. It gained $48 Mil from selling business. It spent $0 Mil on purchasing investments. It gained $753 Mil from selling investments. It paid $137Mil for net Intangibles purchase and sale. And it received $54 Mil from other investing activities. In all, Tesco PLC spent $53 Mil on investment activities in financial market and operating subsidiaries for the six months ended in Aug. 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.

Tesco PLC Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
Cash Flow from Investing Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -430.34 -4,725.17 -3,090.49 -878.57 348.75

Tesco PLC Semi-Annual Data

Feb08 Aug08 Feb09 Aug09 Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17
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 137.07 -1,004.29 -1,180.87 1,475.00 -53.11

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.

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

Tesco PLC's Cash Flow from Investing for the quarter that ended in Aug. 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 Aug. 2017 was $349 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.

Tesco PLC's purchase of property, plant, equipment for the six months ended in Aug. 2017 was $-931 Mil. It means Tesco PLC spent $931 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.

Tesco PLC's sale of property, plant, equipment for the six months ended in Aug. 2017 was $180 Mil. It means Tesco PLC gained $180 Mil from selling property, plant, and equipment.

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

Tesco PLC's purchase of business for the six months ended in Aug. 2017 was $-19 Mil. It means Tesco PLC spent $19 Mil on purchasing business.

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

Tesco PLC's sale of business for the six months ended in Aug. 2017 was $48 Mil. It means Tesco PLC gained $48 Mil from selling business.

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

Tesco PLC's purchase of investment for the six months ended in Aug. 2017 was $0 Mil. It means Tesco PLC spent {stock_data.stock.currency_symbol}}0 Mil on purchasing investments.

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

Tesco PLC's sale of investment for the six months ended in Aug. 2017 was $753 Mil. It means Tesco PLC gained $753 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.

Tesco PLC's net Intangibles purchase and sale for the six months ended in Aug. 2017 was $-137 Mil. It means Tesco PLC paid $137 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.

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

Tesco PLC's cash from other investing activities for the six months ended in Aug. 2017 was $54 Mil. It means Tesco PLC received $54 Mil from other investing activities.


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