Higher interest expenses have contributed to increased expenses, but this is due to the increased use of long term debt. Earnings per share have increased over the past five years as well. Centex Corp. is using long term debt to expand, thereby increasing sales from new building ventures. Annual Cash Flows Centex Corp. has no real consistency in its cash flows. Increases and decreases in financing activities have fluctuated over the past five years.
Similar fluctuations occur with the investing activities as well.
Cash from Financing activities has dropped significantly, 494.8 million to -638.8 million, in this past year. This is due to retirement of common stock and retirement of short term debt. Overall, the net change in cash for Centex Corp. has increased, despite differences in cash from financing and investing activities. In the past five years, Centex Corp. has always had a positive net change in cash. Centex's main sources of funds have been through increases in accounts payable, increases in retained earnings, decreases in accounts receivable, and significant increases in long term debt.