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GuruFocus has detected 8 Warning Signs with Microsoft Corp $MSFT.
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Microsoft Corp (NAS:MSFT)
Cash Flow from Financing
$8,408 Mil (TTM As of Jun. 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 Jun. 2017, Microsoft Corp paid $1,544 Mil more to buy back shares than it received from issuing new shares. It received $1,867 Mil from issuing more debt. It paid $0 Mil more to buy back preferred shares than it received from issuing preferred shares. It spent $3,009 Mil paying cash dividends to shareholders. It spent $15 Mil on other financial activities. In all, Microsoft Corp spent $2,701 Mil on financial activities for the three months ended in Jun. 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.

Microsoft Corp's Cash from Financing for the fiscal year that ended in Jun. 2017 is calculated as:

Cash from Financing(A: Jun. 2017 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-11016+31459+0+-11845+-190
=8,408

Microsoft Corp's Cash from Financing for the quarter that ended in Jun. 2017 is

Cash from Financing(Q: Jun. 2017 )
=Net Issuance of Stock+Net Issuance of Debt+Net Issuance of Preferred+Dividends+Other Financing
=-1544+1867+0+-3009+-15
=-2,701

Microsoft Corp Cash Flow from Financing for the trailing twelve months (TTM) ended in Jun. 2017 was 14329 (Sep. 2016 ) + 3016 (Dec. 2016 ) + -6236 (Mar. 2017 ) + -2701 (Jun. 2017 ) = $8,408 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.

Microsoft Corp's net issuance of stock for the three months ended in Jun. 2017 was $-1,544 Mil. Microsoft Corp paid $1,544 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.

Microsoft Corp's net issuance of debt for the three months ended in Jun. 2017 was $1,867 Mil. Microsoft Corp received $1,867 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.

Microsoft Corp's net issuance of preferred for the three months ended in Jun. 2017 was $0 Mil. Microsoft Corp 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.

Microsoft Corp's cash flow for dividends for the three months ended in Jun. 2017 was $-3,009 Mil. Microsoft Corp spent $3,009 Mil paying cash dividends to shareholders.

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

Microsoft Corp's other financing for the three months ended in Jun. 2017 was $-15 Mil. Microsoft Corp spent $15 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.

Microsoft Corp Annual Data

Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16Jun17
Net Issuance of Stock -9,039-8,774-8,958-9,133-3,116-4,429-6,709-13,809-15,301-11,016
Net Issuance of Debt 05,7461905,96003,5376,96213,66118,28331,459
Net Issuance of Preferred 0000000000
Dividends -4,015-4,468-4,578-5,180-6,385-7,455-8,879-9,882-11,006-11,845
Other Financing 1203355-2393199-39362-369-190
Cash from Financing -12,934-7,463-13,291-8,376-9,408-8,148-8,665-9,668-8,3938,408

Microsoft Corp Quarterly Data

Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17Jun17
Net Issuance of Stock -4,985-4,128-4,538-3,561-3,698-3,504-4,121-3,468-1,883-1,544
Net Issuance of Debt 4,1053,2593,2615,9761,7477,29921,3629,196-9661,867
Net Issuance of Preferred 0000000000
Dividends -2,532-2,496-2,475-2,868-2,842-2,821-2,800-3,024-3,012-3,009
Other Financing 316-239-178-65-123-3-112312-375-15
Cash from Financing -3,096-3,604-3,930-518-4,91697114,3293,016-6,236-2,701
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