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. 2024, Ajinomoto Cospent円13,689 Mil on purchasing property, plant, equipment.
It gained円12,850 Mil from selling property, plant, and equipment.
It spent円0 Mil on purchasing business.
It gained円0 Mil from selling business.
It spent円9,688 Mil on purchasing investments.
It gained円6,507 Mil from selling investments.
It paid円0Mil for net Intangibles purchase and sale.
And it paid円3,494 Mil for other investing activities.
In all, Ajinomoto Cospent円7,514 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Mar. 2024.
Ajinomoto Co Cash Flow from Investing Historical Data
The historical data trend for Ajinomoto Co'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.
Ajinomoto Co's Cash Flow from Investing for the fiscal year that ended in Mar. 2024 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was 円-132,434 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.
Ajinomoto Co (TSE:2802) Cash Flow from Investing Explanation
Ajinomoto Co's purchase of property, plant, equipment for the
three
months ended in Mar. 2024 was 円-13,689 Mil. It means Ajinomoto Co spent 円13,689 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)."
Ajinomoto Co's sale of property, plant, equipment for the
three
months ended in Mar. 2024 was 円12,850 Mil. It means Ajinomoto Co gained 円12,850 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Ajinomoto Co's purchase of business for the
three
months ended in Mar. 2024 was 円0 Mil. It means Ajinomoto Co spent 円0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Ajinomoto Co's sale of business for the
three
months ended in Mar. 2024 was 円0 Mil. It means Ajinomoto Co gained 円0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Ajinomoto Co's purchase of investment for the
three
months ended in Mar. 2024 was 円-9,688 Mil. It means Ajinomoto Co spent {stock_data.stock.currency_symbol}}9,688 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Ajinomoto Co's sale of investment for the
three
months ended in Mar. 2024 was 円6,507 Mil. It means Ajinomoto Co gained 円6,507 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.
Ajinomoto Co's net Intangibles purchase and sale for the
three
months ended in Mar. 2024 was 円0 Mil.
It means Ajinomoto Co paid 円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.
Ajinomoto Co's cash from discontinued investing activities for the
three
months ended in Mar. 2024 was 0 Mil.
It means Ajinomoto Co paid 円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.
Ajinomoto Co's cash from other investing activities for the
three
months ended in Mar. 2024 was 円-3,494 Mil.
It means Ajinomoto Co paid 円3,494 Mil for other investing activities.
Ajinomoto Co Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of Ajinomoto Co's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
Ajinomoto is Japan's leading food company specializing in amino acids and seasonings derived from amino acid fermentation technologies. It also produces processed foods including dry soup mixes, frozen foods, and beverage products. Apart from the consumer business, it is a key supplier of MSG and nucleotides to global food manufacturers including Nestle. The food business represents nearly three fourths of group sales and 80%-plus of profits with nearly two thirds generated overseas. Healthcare and function materials (mainly Ajinomoto build-up film, or ABF), the key growth drivers through 2030, make up the balance of its business portfolio. The nonfood businesses are expected to contribute half of the group profits by 2030, boosted by ABF and CDMO growth.
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