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GuruFocus has detected 2 Warning Signs with American Express Co $AXP.
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American Express Co (NYSE:AXP)
Cash Flow from Financing
$-1,403 Mil (TTM As of Mar. 2017)

Cash from financing is the cash generated/spent from financial activities such as share issuance (buy back), debt issuance (repayment), and dividends paid to preferred and common stockholders.

For the three months ended in Mar. 2017, American Express Co paid $895 Mil more to buy back shares than it received from issuing new shares. It received $2,678 Mil from issuing more debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $313 Mil paying cash dividends to shareholders. It received $735 Mil on other financial activities. In all, American Express Co earned $2,205 Mil on financial activities for the three months ended in Mar. 2017.


Definition

This is the cash generated/spent from financial activities such as share issuance (buy back), debt issuance (repayment), and dividends paid to preferred and common stockholders. In the calculation of free cash flow, cash from financing is not calculated because it is not related to operating activities.

American Express Co's Cash from Financing for the fiscal year that ended in Dec. 2016 is calculated as:

Cash from Financing(A: Dec. 2016 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-4254+-136+0+-1207+-1935
=-7,532

American Express Co's Cash from Financing for the quarter that ended in Mar. 2017 is

Cash from Financing(Q: Mar. 2017 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-895+2678+0+-313+735
=2,205

American Express Co Cash Flow from Financing for the trailing twelve months (TTM) ended in Mar. 2017 was -348 (Jun. 2016 ) + -6981 (Sep. 2016 ) + 3721 (Dec. 2016 ) + 2205 (Mar. 2017 ) = $-1,403 Mil.

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


Explanation

Cash from financing contains five items:

1. Net Issuance of Stock:
A company may raise cash from issuing new shares. It can also use cash to buy back shares. If this number is positive, it means that the company has received more cash from issuing shares than it has paid to buy back shares. If this number is negative, it means that company has paid more cash to buy back shares than it has received for issuing shares.

American Express Co's net issuance of stock for the three months ended in Mar. 2017 was $-895 Mil. American Express Co paid $895 Mil more to buy back shares than it received from issuing new shares.

2. Net Issuance of Debt:
Net issuance of debt is the cash a company received or spent through debt related activities such as debt issuance or debt repayment. If a company pays down its debt during the period, this number will be negative. If a company issued more debt, it receives cash and this number is positive.

American Express Co's net issuance of debt for the three months ended in Mar. 2017 was $2,678 Mil. American Express Co received $2,678 Mil from issuing more debt.

3. Net Issuance of Preferred:
A company may raise cash from issuing new preferred shares. It can also use cash to buy back preferred shares. If this number is positive, it means that the company has received more cash from issuing preferred shares than it has paid to buy back preferred shares. If this number is negative, it means that company has paid more cash to buy back preferred shares than it has received for issuing preferred shares.

American Express Co's net issuance of preferred for the three months ended in Mar. 2017 was $0 Mil. American Express Co paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares.

4. Dividends:
Cash flow for dividends refers to the payment of cash to shareholders as dividends when the company generates income.

American Express Co's cash flow for dividends for the three months ended in Mar. 2017 was $-313 Mil. American Express Co spent $313 Mil paying cash dividends to shareholders.

5. Other Financing:
Money spent or earned by company from other financial activities.

American Express Co's other financing for the three months ended in Mar. 2017 was $735 Mil. American Express Co received $735 Mil on other financial activities.


Related Terms

Cash Flow from Operations, Cash Flow from Investing, Net Issuance of Stock, Net Issuance of Debt, Dividends, Net Issuance of Preferred


Historical Data

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

American Express Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
Net Issuance of Stock -2,720-4261473-1,706-3,509-3,222-4,027-4,287-4,254
Net Issuance of Debt 14,301-3,267-15,074-10,490-6,342-1,157-9251,878-7,928-136
Net Issuance of Preferred 00000007428410
Dividends -712-836-924-867-861-902-939-1,041-1,172-1,207
Other Financing 4,597-6,29510,7373,4068,2322,3001,1952,45910,878-1,935
Cash from Financing 15,466-10,440-4,647-7,878-677-3,268-3,89111-1,668-7,532

American Express Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
Net Issuance of Stock -1,073-737-1,091-1,333-1,126-1,177-1,600-622-855-895
Net Issuance of Debt 2,803-4,162242-5,2881,280-3,2182,918-5,1635,3272,678
Net Issuance of Preferred 084100000000
Dividends -271-268-265-335-304-302-299-291-315-313
Other Financing 2,2847842,2332,1545,707773-1,367-905-436735
Cash from Financing 3,743-3,5421,119-4,8025,557-3,924-348-6,9813,7212,205
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