Top China ADR Portal

China ADR stock research


Warning: strtotime(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 56

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 198

UPDATE: Cash Flow Analysis for BIDU

E-mail Print PDF

cash_4 September 13, 2012 (Chinavestor) All three cash flows (cash from operations, CFO, cash from investing activities, CFI, and cash from financing activities, CFF) increased significantly in magnitude for Baidu.com Inc. (NASDAQ:BIDU). The increase of CFO in both 2010 and 2011 are mainly due to the BIDU’s increase in net income.

 

BIDU_cash_ann_2012sept

In 2011, CFI has increased dramatically from negative $193 million to negative $2,264 million, which is more than 10 times in magnitude. The main reason behind this significant increase in CFI in 2011 is the large increase in purchase of short term investments and acquisition of businesses for Baidu.com Inc. (NASDAQ:BIDU) during this year.

The increase of CFI in 2011 is mainly due to two portions: 1) $1,743,398,000 purchase of short term investment, and 2) $309,167,000 of acquisition of business (mainly for the company Qunar, which is a traveling searching company focusing on flight and hotel price comparing and booking services).
So it seems that BIDU is buying a large amount of short term investment stuff, such as fixed rate investments, instead of holding as much cash as before. The other thing is that BIDU has acquired 62.01% of Qunar at a expense of $300.28 million on July 2011 (constituting the main part of acquisition of business in CFI outflow), which is an expansion of BIDU's general search business to the travel search industry.

Starting from year 2011, Baidu.com Inc. (NASDAQ:BIDU) began to raise capital through proceeds of short term debt, and it also increased much in its long term borrowings, which caused the CFF for Baidu.com Inc. (NASDAQ:BIDU) increased from $19.8 million in 2010 to $385.4 million.

BIDU_freecash_2012sept

The free cash flows of Baidu.com Inc. (NASDAQ:BIDU) are $285.4, $587.4, and 602.8 million in 2009, 2010, and 2011, respectively. It increased 106% and 3% in year 2010 and 2011. The slowed increase of free cash flow for BIDU in 2011 is accountable for, at first, its larger capital investment in the fixed assets, and, second, the large amount of capital paid for the acquisition of businesses and intangible assets at that year.



If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
Reddit! Del.icio.us! Mixx! Free and Open Source Software News Google! Live! Facebook! StumbleUpon! TwitThis Joomla Free PHP
 

!!! CHINAVESTOR.COM is for SALE !!!

BUY this domain with all its credentials. Chinavestor.com has been added to Google News and Finance since 2008! Huge web traffic upside potential! Website is optimized for Chinese stocks but can easily be tweaked. Contact Seller Here

sale1
G_news
Check out The Benefits of Getting into Google News!