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 Sep. 2024, Compass Groupspent$309 Mil on purchasing property, plant, equipment.
It gained$46 Mil from selling property, plant, and equipment.
It spent$422 Mil on purchasing business.
It gained$211 Mil from selling business.
It spent$1 Mil on purchasing investments.
It gained$329 Mil from selling investments.
It paid$178Mil for net Intangibles purchase and sale.
And it paid$239 Mil for other investing activities.
In all, Compass Groupspent$563 Mil on investment activities in financial market and operating subsidiaries for the
six
months ended in Sep. 2024.
Compass Group Cash Flow from Investing Historical Data
The historical data trend for Compass Group's Cash Flow from Investing can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Compass Group Cash Flow from Investing 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.
Compass Group's Cash Flow from Investing for the fiscal year that ended in Sep. 2024 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 adds up the semi-annually data reported by the company within the most recent 12 months, which was $-1,489 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Compass Group (OTCPK:CMPGY) Cash Flow from Investing Explanation
Compass Group's purchase of property, plant, equipment for the
six
months ended in Sep. 2024 was $-309 Mil. It means Compass Group spent $309 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)."
Compass Group's sale of property, plant, equipment for the
six
months ended in Sep. 2024 was $46 Mil. It means Compass Group gained $46 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Compass Group's purchase of business for the
six
months ended in Sep. 2024 was $-422 Mil. It means Compass Group spent $422 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Compass Group's sale of business for the
six
months ended in Sep. 2024 was $211 Mil. It means Compass Group gained $211 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Compass Group's purchase of investment for the
six
months ended in Sep. 2024 was $-1 Mil. It means Compass Group spent {stock_data.stock.currency_symbol}}1 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Compass Group's sale of investment for the
six
months ended in Sep. 2024 was $329 Mil. It means Compass Group gained $329 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.
Compass Group's net Intangibles purchase and sale for the
six
months ended in Sep. 2024 was $-178 Mil.
It means Compass Group paid $178 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.
Compass Group's cash from discontinued investing activities for the
six
months ended in Sep. 2024 was 0 Mil.
It means Compass Group 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.
Compass Group's cash from other investing activities for the
six
months ended in Sep. 2024 was $-239 Mil.
It means Compass Group paid $239 Mil for other investing activities.
Compass Group Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of Compass Group's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
Compass Group is the largest food-service company globally, operating in 33 countries with annual sales of more than $30 billion. Compass' model is to operate on-premises catering facilities, rather than centralized industrial kitchens. Food service is Compass' focus and contributes more than 85% of revenue. Compass also has its own group purchasing organization Foodbuy, responsible for over $30 billion in spending in the US per year. The company also provides premium support services to clients.
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