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 Dec. 2023, Toyota Motorspent$7,944 Mil on purchasing property, plant, equipment.
It gained$3,627 Mil from selling property, plant, and equipment.
It spent$0 Mil on purchasing business.
It gained$0 Mil from selling business.
It spent$6,332 Mil on purchasing investments.
It gained$3,941 Mil from selling investments.
It paid$603Mil for net Intangibles purchase and sale.
And it paid$3,652 Mil for other investing activities.
In all, Toyota Motorspent$10,963 Mil on investment activities in financial market and operating subsidiaries for the
three
months ended in Dec. 2023.
Toyota Motor Cash Flow from Investing Historical Data
The historical data trend for Toyota Motor'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.
Toyota Motor's Cash Flow from Investing for the fiscal year that ended in Mar. 2023 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-29,883 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.
Toyota Motor (NYSE:TM) Cash Flow from Investing Explanation
Toyota Motor's purchase of property, plant, equipment for the
three
months ended in Dec. 2023 was $-7,944 Mil. It means Toyota Motor spent $7,944 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)."
Toyota Motor's sale of property, plant, equipment for the
three
months ended in Dec. 2023 was $3,627 Mil. It means Toyota Motor gained $3,627 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Toyota Motor's purchase of business for the
three
months ended in Dec. 2023 was $0 Mil. It means Toyota Motor spent $0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Toyota Motor's sale of business for the
three
months ended in Dec. 2023 was $0 Mil. It means Toyota Motor gained $0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Toyota Motor's purchase of investment for the
three
months ended in Dec. 2023 was $-6,332 Mil. It means Toyota Motor spent {stock_data.stock.currency_symbol}}6,332 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Toyota Motor's sale of investment for the
three
months ended in Dec. 2023 was $3,941 Mil. It means Toyota Motor gained $3,941 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.
Toyota Motor's net Intangibles purchase and sale for the
three
months ended in Dec. 2023 was $-603 Mil.
It means Toyota Motor paid $603 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.
Toyota Motor's cash from discontinued investing activities for the
three
months ended in Dec. 2023 was 0 Mil.
It means Toyota Motor 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.
Toyota Motor's cash from other investing activities for the
three
months ended in Dec. 2023 was $-3,652 Mil.
It means Toyota Motor paid $3,652 Mil for other investing activities.
Toyota Motor Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of Toyota Motor's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 1937, Toyota is one of the world's largest automakers with 10.56 million units sold at retail in fiscal 2023 across its light vehicle brands. Brands include Toyota, Lexus, Daihatsu, and truck maker Hino; market share in Japan is about 51% excluding mini-vehicles, while U.S. share is around 15%. The firm also owns 3.3% of Denso, a parts supplier, about 20% of Subaru, and holds investments in many other firms, including shares of Uber Technologies, Joby Aviation, Aurora Innovation, Isuzu Motors, and about 5% in each of Mazda and Suzuki. Fiscal 2023 sales excluding financial services were JPY 34.4 trillion. Toyota also has a financing arm and manufactures homes and boats.
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