Workday (NAS:WDAY) Cash Flow from Investing

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.

Workday's purchase of property, plant, equipment for the three months ended in Jan. 2023 was $-74 Mil. It means Workday spent $74 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.

Workday's sale of property, plant, equipment for the three months ended in Jan. 2023 was $0 Mil. It means Workday gained $0 Mil from selling property, plant, and equipment.

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

Workday's purchase of business for the three months ended in Jan. 2023 was $0 Mil. It means Workday spent $0 Mil on purchasing business.

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

Workday's sale of business for the three months ended in Jan. 2023 was $0 Mil. It means Workday gained $0 Mil from selling business.

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

Workday's purchase of investment for the three months ended in Jan. 2023 was $-1,535 Mil. It means Workday spent {stock_data.stock.currency_symbol}}1,535 Mil on purchasing investments.

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

Workday's sale of investment for the three months ended in Jan. 2023 was $1,232 Mil. It means Workday gained $1,232 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.

Workday's net Intangibles purchase and sale for the three months ended in Jan. 2023 was $0 Mil. It means Workday 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.

Workday's cash from discontinued investing activities for the three months ended in Jan. 2023 was 0 Mil. It means Workday 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.

Workday's cash from other investing activities for the three months ended in Jan. 2023 was $-4 Mil. It means Workday paid $4 Mil for other investing activities.

Workday Cash Flow from Investing Related Terms

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