What is The First Marblehead Cash Flow from Investing?
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
three
months ended in Mar. 2016, The First Marbleheadspent$0.61 Mil on purchasing property, plant, equipment.
It gained$0.00 Mil from selling property, plant, and equipment.
It spent$0.00 Mil on purchasing business.
It gained$0.00 Mil from selling business.
It spent$4.69 Mil on purchasing investments.
It gained$9.02 Mil from selling investments.
It paid$0.00Mil for net Intangibles purchase and sale.
And it received$0.22 Mil from other investing activities.
In all, The First Marbleheadgained$3.94 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Mar. 2016.
The First Marblehead Cash Flow from Investing Historical Data
The historical data trend for The First Marblehead'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.
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The First Marblehead Cash Flow from Investing Chart
The First Marblehead 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.
The First Marblehead's Cash Flow from Investing for the fiscal year that ended in Jun. 2015 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 adds up the quarterly data reported by the company within the most recent 12 months, which was $16.91 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.
The First Marblehead (NYSE:FMD) Cash Flow from Investing Explanation
The First Marblehead's purchase of property, plant, equipment for the
three
months ended in Mar. 2016 was $-0.61 Mil. It means The First Marblehead spent $0.61 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)."
The First Marblehead's sale of property, plant, equipment for the
three
months ended in Mar. 2016 was $0.00 Mil. It means The First Marblehead gained $0.00 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
The First Marblehead's purchase of business for the
three
months ended in Mar. 2016 was $0.00 Mil. It means The First Marblehead spent $0.00 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
The First Marblehead's sale of business for the
three
months ended in Mar. 2016 was $0.00 Mil. It means The First Marblehead gained $0.00 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
The First Marblehead's purchase of investment for the
three
months ended in Mar. 2016 was $-4.69 Mil. It means The First Marblehead spent {stock_data.stock.currency_symbol}}4.69 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
The First Marblehead's sale of investment for the
three
months ended in Mar. 2016 was $9.02 Mil. It means The First Marblehead gained $9.02 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.
The First Marblehead's net Intangibles purchase and sale for the
three
months ended in Mar. 2016 was $0.00 Mil.
It means The First Marblehead paid $0.00 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.
The First Marblehead's cash from discontinued investing activities for the
three
months ended in Mar. 2016 was 0.00 Mil.
It means The First Marblehead paid $0.00 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.
The First Marblehead's cash from other investing activities for the
three
months ended in Mar. 2016 was $0.22 Mil.
It means The First Marblehead received $0.22 Mil from other investing activities.
The First Marblehead Cash Flow from Investing Related Terms
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The First Marblehead (The First Marblehead) Business Description
The First Marblehead Corp was formed as a limited partnership in 1991 and was incorporated in Delaware in August 1994. It is a specialty finance company focused on the education financing marketplace in the United States. It provides loan programs on behalf of its lender clients for K-12, undergraduate and graduate students and for college graduates seeking to refinance private education loan obligations, as well as tuition planning, tuition billing, refund management and payment technology services. It provides a fully integrated suite of services through its Monogram loan product service platform, which it refer to as its Monogram platform, as well as certain services on a stand-alone, fee-for-service basis. These loan programs are designed to be marketed to prospective student borrowers and their families directly or through educational institutions and to generate portfolios which might be held by the originating lender or financed in the capital markets. It offers a fully integrated suite of services, including its new Monogram loan product, as well as certain services on a standalone, fee-for-service basis. In addition, it provides administrative and other services to securitization trusts that it has facilitated and asset servicing to the third-party owner of certain securitization trusts. The Company's bank subsidiary, Union Federal Savings Bank is a federally chartered thrift that offers residential and commercial mortgage loans, and certain other banking products. Through its Monogram product offering, it enables lenders to offer borrowers private education loans with competitive terms and clear pricing alternatives, but which are also structured to align product options made available to qualified applicants with their credit risk. The Monogram product integrates all of its service offerings, including program design, marketing support, loan origination and portfolio management. The product enables its lender clients to customize their loan programs to meet their risk control and return objectives without a third-party guaranty. Specifically, the client could customize the range of loan terms offered to their qualified applicants, such as repayment options, loan limits and borrower pricing. The Monogram product is based on its proprietary origination risk score model, which was independently reviewed by a credit bureau. It helps clients design their private education loan programs. The Company's design approach begins with a standard set of pricing options, legal agreements and third-party relationships that it could then customize for its clients in order to satisfy their particular needs. The Company's systems have been designed to provide applicants with consumer protection disclosures required by law and regulation, as well as information helpful for making informed decisions about private education loans. It operates in a competitive environment.FIRSTMARBLEHEAD, the checkered logo, MONOGRAM, MONTICELLO STUDENT LOA
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