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.
Based on: 10-K (reporting date: 2024-11-29), 10-K (reporting date: 2023-12-01), 10-K (reporting date: 2022-12-02), 10-K (reporting date: 2021-12-03), 10-K (reporting date: 2020-11-27), 10-K (reporting date: 2019-11-29).
- Net Income
- Net income exhibited a generally upward trend from 2019 through 2024, increasing from $2,951 million in 2019 to $5,560 million in 2024, despite a slight dip in 2021 and 2022. This indicates sustained profitability improvement over the period.
- Depreciation, Amortization, and Accretion
- These non-cash expenses showed a gradual increase over the years, rising from $737 million in 2019 to $857 million in 2024, reflecting ongoing capital investments and amortization of intangible assets.
- Stock-Based Compensation
- Stock-based compensation costs steadily escalated, more than doubling from $788 million in 2019 to $1,833 million in 2024. This growth suggests an increased emphasis on equity incentives in compensation structures.
- Operating Lease Assets and Impairments
- Reduction of operating lease right-of-use assets fluctuated moderately between $72 million and $87 million starting 2020, with a lease-related asset impairment of $78 million recorded in 2024, signifying some lease asset write-down in the latest year.
- Deferred Income Taxes
- Deferred income taxes showed volatility, swinging from a negative $1,501 million in 2020 to positive values in 2021 and 2022, then turning negative again in 2023 and 2024. This variation reflects changes in tax timing differences and potentially shifting tax planning strategies.
- Unrealized Gains/Losses on Investments
- Unrealized investment gains and losses were relatively minor with fluctuations around zero, indicating a stable investment portfolio with limited marked-to-market volatility.
- Other Non-Cash Items
- These items remained fairly stable and low in magnitude, generally under $50 million annually, suggesting minor adjustments in non-cash accounting adjustments.
- Changes in Working Capital Components
- Trade receivables, prepaid expenses, payables, accrued expenses, and income taxes payable displayed considerable volatility, with net changes in operating assets and liabilities ranging from -$355 million to $336 million. This reflects dynamic working capital management and varying operational cash flows.
- Deferred Revenue
- Deferred revenue showed notable fluctuations, peaking at $1,053 million in 2021 before declining to $309 million in 2024, which might indicate shifts in customer billing patterns or revenue recognition timing.
- Cash Flow from Operating Activities
- Net cash generated from operations consistently increased from $4,422 million in 2019 to $8,056 million in 2024, highlighting strong operational cash generation capacity.
- Investing Activities
- Purchases of short-term investments were significant until 2022 but ceased in 2023, with occasional maturities and sales providing liquidity. Acquisitions peaked negatively with a large outflow of $2,682 million in 2021 but were negligible or absent in other years. Capital expenditure fluctuated but generally trended downward from $394 million in 2019 to $183 million in 2024. Overall, net cash used for investing turned from substantial outflow in 2021 (-$3,537 million) to modest inflows in 2023 and 2024.
- Financing Activities
- Repurchases of common stock were consistently significant, with a peak of $9,500 million in 2024, signaling aggressive shareholder return policies. Issuance and repayment of debt showed sporadic large movements, including issuing $3,144 million in 2020 and repaying a similar amount the same year, with another issuance of $1,997 million in 2024. Net cash used in financing was largely negative across all years, reflecting heavy stock buybacks and other financing outflows.
- Liquidity Position
- Cash and cash equivalents increased overall from $2,650 million at the end of 2019 to $7,613 million at the end of 2024, with some fluctuations. The net change in cash generally remained positive, demonstrating a strengthening liquidity position over the period.
- Summary of Trends
- The company shows solid earnings growth accompanied by expanding non-cash expenses such as stock compensation. Operational cash flows are robust and growing, funding sizable share repurchase programs and selective investing activities. Working capital and tax-related items experienced variability, but the overall cash position strengthened, aided by balanced investing and financing activities. The data suggests a strategy focused on shareholder returns and operational efficiency while maintaining strong liquidity.