Principles of Finance: Unit 3, Cash Flow From Investing Activities

What are cash flows from investing activities? And we're talking about investing in your own company here. Not putting $2 on Runs With a Limp to Place.

CoursesFinance Concepts
Principles of Finance
FinanceFinancial Responsibility
Personal Finance
Finance and EconomicsPrinciples of Finance
LanguageEnglish Language
Life SkillsPersonal Finance
SubjectsFinance and Economics

Transcript

00:22

on for doll making companies Yeah It's pretty obvious that

00:26

while they need these things and that they should own

00:29

them since this is pretty much their core business Well

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the company burned sixty nine million dollars buying them in

00:34

this period and they will likely not last forever So

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you'd look for the company to depreciate their value over

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some logical period of time All right Well the next

00:44

lines forty two million dollars for other property plant equipment

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Well wonder what that could be Plastic hair A barbie

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mobile testing facility Maybe barbie blue to write Maybe not

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Well whatever the case they burned forty two million bucks

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buying other peopie any in this reporting period So then

01:00

we see thirty three million dollars has payments for acquisitions

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Well that's Interesting Wonder what company they bought and note

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that this is listed in investing category not the financing

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Category Why Well because they're buying things directly for the

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operations of the company It was an acquisition of an

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operating thing not an acquisition of something solely for the

01:23

financial management of the company like the acquisition of the

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company's own stock because while they thought their stock was

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cheap all right well the next lines a gain of

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sixteen million dollars from foreign currency Edging the dollar was

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relatively strong against the brexit ing europe and an imploding

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latin america and a dying middle east under cheap oil

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panes well earned So they made a cash game of

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sixty million dollars from whoever bet along the u s

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dollar in january of two thousand sixteen was their gains

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on foreign currency trades That's not normally the domain of

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a plastic doll making company but they have to note

01:57

it when they get lucky And yeah good job Give

02:00

that gala freak All right ignore other again and you

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get to net cash flows used for investing activities as

02:08

another big fat loss of one hundred twenty four million

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bucks Ouch When will the bleeding stop and it's worth

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noting here that they burned two hundred forty million dollars

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From operations and just burned another one hundred twenty four

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million from investing All right well in total thus far

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in the first six months here of two thousand sixteen

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mattel has burned three hundred sixty four million dollars The

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titanic appears to be sinking We can hear a celine 00:02:33.358 --> [endTime] dion right now