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, SciQuestspent$0.4 Mil on purchasing property, plant, equipment.
It gained$0.0 Mil from selling property, plant, and equipment.
It spent$0.0 Mil on purchasing business.
It gained$0.0 Mil from selling business.
It spent$73.9 Mil on purchasing investments.
It gained$67.0 Mil from selling investments.
It paid$0.0Mil for net Intangibles purchase and sale.
And it paid$1.4 Mil for other investing activities.
In all, SciQuestspent$8.8 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Mar. 2016.
SciQuest Cash Flow from Investing Historical Data
The historical data trend for SciQuest'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.
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.
SciQuest's Cash Flow from Investing for the fiscal year that ended in Dec. 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 $-18.6 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.
SciQuest (NAS:SQI) Cash Flow from Investing Explanation
SciQuest's purchase of property, plant, equipment for the
three
months ended in Mar. 2016 was $-0.4 Mil. It means SciQuest spent $0.4 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)."
SciQuest's sale of property, plant, equipment for the
three
months ended in Mar. 2016 was $0.0 Mil. It means SciQuest gained $0.0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
SciQuest's purchase of business for the
three
months ended in Mar. 2016 was $0.0 Mil. It means SciQuest spent $0.0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
SciQuest's sale of business for the
three
months ended in Mar. 2016 was $0.0 Mil. It means SciQuest gained $0.0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
SciQuest's purchase of investment for the
three
months ended in Mar. 2016 was $-73.9 Mil. It means SciQuest spent {stock_data.stock.currency_symbol}}73.9 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
SciQuest's sale of investment for the
three
months ended in Mar. 2016 was $67.0 Mil. It means SciQuest gained $67.0 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.
SciQuest's net Intangibles purchase and sale for the
three
months ended in Mar. 2016 was $0.0 Mil.
It means SciQuest paid $0.0 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.
SciQuest's cash from discontinued investing activities for the
three
months ended in Mar. 2016 was 0.0 Mil.
It means SciQuest paid $0.0 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.
SciQuest's cash from other investing activities for the
three
months ended in Mar. 2016 was $-1.4 Mil.
It means SciQuest paid $1.4 Mil for other investing activities.
SciQuest Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of SciQuest's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
SciQuest Inc was incorporated in November, 1995. The Company provides cloud-based business automation solutions for spend management. Its solutions include spend analytics solutions that cleanse and classify spend data from a wide variety of sources and formats putting data and analytics to work to drive and measure cost savings; sourcing solutions that create events, manage bids and award contracts automatically to simplify and optimize the bidding process; supplier management solutions that facilitate on-boarding, maintaining and managing supplier relationships and give visibility into which suppliers are able to support goals; contract lifecycle management solutions that automate the contract lifecycle from contract authoring, automated workflow approvals to a fully searchable archive of executed contracts; procurement solutions that automate the purchasing process and drive contract compliance; inventory management solutions that facilitate finding, sourcing and tracking chemicals and research supplies; accounts payable solutions that automate the invoice processing and vendor payment processes; and a supplier network that provides a single platform for all supplier interactions. Its spend management solutions provide a return on investment for its customers by facilitating the reduction of spending on goods and services, enhancing visibility and control over spending decisions and practices as well as optimizing the efficiency of key business processes. The procurement, supplier management and accounts payable solutions leverage its managed Company Supplier Network, which facilitates its customers doing business with many thousands of suppliers and spending billions of dollars annually. The Company delivers cloud-based solutions using a Software-as-a-Service, or SaaS, model. The Company offers its customers various services including Client Partners, Supplier Enablement Services, Implementation Services, Customer Support, and Business Process Optimization Services. The Company competes with relatively small specialty software vendors, large ERP vendors and internally developed and maintained solutions. Specialty vendors or niche providers that compete with one or more or the Company's solutions, including Aravo, Basware, BravoSolution, Coupa, Determine, ESM Solutions, GXS, Hubwoo, OB10, Perfect Commerce, Periscope, Verian and Zycus; and Enterprise software application vendors, including SAP AG, Oracle, IBM, Infor and Workday.
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