Name: Abiomed Inc. (NASDAQ:ABMD) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Abiomed Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Net income	136,505)	225,525)	203,009)	259,016)	112,170)	52,116)
Depreciation and amortization	28,089)	24,097)	20,430)	14,121)	11,005)	6,202)
Acquired in-process research & development	115,986)	—)	—)	—)	—)	—)
Bad debt expense (recoveries)	46)	(126)	487)	720)	38)	159)
Stock-based compensation expense	52,729)	47,006)	39,781)	54,494)	40,353)	32,866)
Write-down of inventory and other	17,993)	8,518)	4,249)	4,252)	3,946)	3,085)
Accretion on marketable securities	3,655)	1,977)	(2,731)	(2,744)	—)	—)
Change in fair value of investments	(22,873)	(50,983)	5,184)	(30,161)	—)	—)
Excess tax benefit from stock-based awards	—)	—)	—)	—)	—)	(12,038)
Deferred tax provision	2,413)	29,380)	32,953)	(7,745)	42,624)	25,803)
Change in fair value of contingent consideration	(862)	2,406)	(575)	(915)	1,337)	1,590)
Gain on previously held interest in preCARDIA	(20,980)	—)	—)	—)	—)	—)
Other non-cash operating activities	2,885)	4,164)	4,108)	—)	—)	—)
Accounts receivable, net	5,335)	(12,059)	5,551)	(22,023)	(15,289)	(11,550)
Inventories, net	(29,323)	2,535)	(13,237)	(37,181)	(15,686)	(12,284)
Prepaid expenses and other assets	(8,406)	(1,032)	(5,333)	(2,527)	(4,466)	(2,366)
Accounts payable	641)	2,629)	2,581)	7,976)	4,412)	7,565)
Accrued expenses and other liabilities	(760)	(14,632)	15,676)	13,406)	7,722)	22,223)
Deferred revenue	2,317)	5,173)	2,787)	1,508)	4,380)	1,745)
Changes in assets and liabilities	(30,196)	(17,386)	8,025)	(38,841)	(18,927)	5,333)
Adjustments to reconcile net income to net cash provided by operating activities	148,885)	49,053)	111,911)	(6,819)	80,376)	63,000)
Net cash provided by operating activities	285,390)	274,578)	314,920)	252,197)	192,546)	115,116)
Purchases of marketable securities	(787,150)	(556,199)	(611,280)	(361,602)	(325,408)	(278,501)
Proceeds from the sale and maturity of marketable securities	543,513)	396,643)	550,788)	331,886)	206,909)	205,482)
Acquisition of preCARDIA, net of cash acquired	(82,821)	—)	—)	—)	—)	—)
Acquisition of Breethe, net of cash acquired	—)	(52,183)	—)	—)	—)	—)
Purchases of other investments and intangible assets	(18,769)	(26,104)	(20,957)	(42,735)	(6,400)	(2,899)
Proceeds from sale of Shockwave Medical securities	—)	67,882)	—)	—)	—)	—)
Purchases of property and equipment	(35,763)	(53,383)	(44,006)	(44,004)	(55,863)	(50,415)
Net cash used for investing activities	(380,990)	(223,344)	(125,455)	(116,455)	(180,762)	(126,333)
Proceeds from the exercise of stock options	9,424)	9,075)	3,748)	12,949)	9,303)	10,660)
Excess tax benefit from stock-based awards	—)	—)	—)	—)	—)	12,038)
Taxes paid related to net share settlement upon vesting of stock awards	(16,526)	(11,311)	(41,687)	(71,776)	(20,317)	(20,105)
Payment of Breethe contingent consideration at acquisition date fair value	(2,334)	—)	—)	—)	—)	—)
Repurchase of common stock	—)	(11,310)	(84,879)	—)	—)	—)
Proceeds from the issuance of stock under employee stock purchase plan	7,234)	5,479)	5,103)	3,052)	2,394)	1,720)
Principal payments on capital lease obligation	—)	—)	—)	—)	(517)	(446)
Net cash provided by (used for) financing activities	(2,202)	(8,067)	(117,715)	(55,775)	(9,137)	3,867)
Effect of exchange rate changes on cash and cash equivalents	(2,090)	(2,798)	(430)	(1,921)	1,288)	(1,841)
Net increase (decrease) in cash and cash equivalents	(99,892)	40,369)	71,320)	78,046)	3,935)	(9,191)
Cash and cash equivalents at beginning of period	232,710)	192,341)	121,021)	42,975)	39,040)	48,231)
Cash and cash equivalents at end of period	132,818)	232,710)	192,341)	121,021)	42,975)	39,040)

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

The financial profile exhibits a consistent capacity to generate positive cash flow from operations, which has grown steadily over the analyzed period. While net income showed significant volatility, peaking in 2019 and declining by 2022, net cash provided by operating activities maintained a strong upward trajectory, increasing from 115.1 million US$ in 2017 to 285.4 million US$ in 2022. This divergence indicates that operating cash flows are supported by substantial non-cash adjustments, ensuring liquidity despite fluctuations in accounting profitability.

Operating Cash Flow Dynamics: A significant contribution to operating cash flow is derived from non-cash expenses. Depreciation and amortization increased linearly from 6.2 million US$ in 2017 to 28.1 million US$ in 2022. Stock-based compensation also represents a major non-cash add-back, growing from 32.9 million US$ to 52.7 million US$ over the same period. Working capital management shows volatility, particularly in inventory, which created significant cash outflows in 2019 and 2022, suggesting cyclical build-ups of stock or shifts in supply chain requirements.
Investment and Capital Allocation: Investing activities are characterized by high volume turnover in marketable securities and strategic acquisitions. Purchases of marketable securities escalated significantly, reaching 787.2 million US$ in 2022. Strategic expansions are evident through the acquisition of Breethe in 2021 (52.2 million US$) and preCARDIA in 2022 (82.8 million US$). Capital expenditures for property and equipment remained relatively stable, fluctuating between 35.8 million US$ and 55.9 million US$ annually, indicating a consistent level of investment in physical infrastructure.
Financing and Shareholder Activity: Financing activities transitioned from slightly positive to generally negative, reflecting a shift toward returning capital to shareholders and settling obligations. A notable repurchase of common stock occurred in 2020, totaling 84.9 million US$. Outflows related to taxes paid on the net share settlement of stock awards have been a persistent feature, though they peaked in 2019 at 71.8 million US$. The company has largely avoided external debt financing, relying instead on internal cash generation and equity-based instruments.

The overall liquidity position reflects a period of aggressive accumulation followed by a strategic drawdown. Cash and cash equivalents grew from 39.0 million US$ at the end of March 2017 to a peak of 232.7 million US$ by March 2021. However, a sharp decrease to 132.8 million US$ was observed by March 2022, primarily driven by increased investments in marketable securities and the acquisition of preCARDIA. Despite this reduction, the strong operating cash flow provides a sustainable foundation for future capital expenditures and strategic investments.

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