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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- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Dividend Discount Model (DDM)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Analysis of Debt
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Amgen Inc., consolidated cash flow statement
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data over the presented periods reveals several significant trends and fluctuations in key operational and financial metrics.
- Net Income
- Net income demonstrated a declining trend from 7,264 million USD at the end of 2020 to 4,090 million USD at the end of 2024, with some fluctuations such as a decrease in 2021 followed by modest increases until 2023 before a sharp decline in 2024.
- Depreciation, Amortization and Other Noncash Charges
- These charges increased steadily from 3,601 million USD in 2020 to 5,592 million USD in 2024, indicating rising noncash expenses which may influence operating cash flows and earnings quality.
- Stock-Based Compensation Expense
- This expense showed a consistent upward trajectory, rising from 330 million USD in 2020 to 530 million USD in 2024, reflecting increasing equity incentives over time.
- Deferred Income Taxes
- Deferred tax liabilities expanded negatively (more negative) from -287 million USD in 2020 to around -1,228 million USD in 2024, with considerable volatility, especially large negative adjustments in 2022 and 2023, which may impact cash taxes and deferred tax positions.
- Noncash Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
- These adjustments significantly increased from 3,449 million USD in 2020 to 5,035 million USD in 2024, showing more extensive reconciliation items affecting operating cash flows.
- Changes in Operating Assets and Liabilities
- There was notable volatility in net changes to operating assets and liabilities, with a major negative impact in 2021 (-1,194 million USD) and 2022 (-733 million USD) followed by a positive swing to 2,365 million USD in 2024. This fluctuation indicates possible working capital management challenges or strategic timing of cash flows.
- Net Cash Provided by Operating Activities
- Operating cash flow decreased from 10,497 million USD in 2020 to 8,471 million USD in 2023 before rebounding to a peak of 11,490 million USD in 2024. Despite net income declines, operating cash flow improved in 2024, potentially due to changes in working capital and noncash adjustment trends.
- Investing Activities
-
Cash paid for acquisitions showed substantial outflows in 2021 (-2,529 million USD) and 2022 (-3,839 million USD), with an extraordinary spike in 2023 (-26,989 million USD), indicating aggressive acquisition activity. Purchases of marketable securities decreased sharply over time, almost ceasing by 2024. Proceeds from sales and maturities of marketable securities declined as well.
Capital expenditures (property, plant, and equipment) steadily increased to approximately -1,096 million USD by 2024, reflecting consistent investment in fixed assets.
Overall, net cash used in investing activities swung dramatically from a positive 733 million USD in 2021 to significant outflows in 2023 (-26,204 million USD), moderating to -1,046 million USD in 2024.
- Financing Activities
-
Issuance of debt rose markedly, peaking at 27,777 million USD in 2023, coinciding with the heightened acquisition expenditures. Debt extinguishment and repayments were steady but less than the issuance amounts in the same years.
Share repurchases peaked in 2022 at -6,360 million USD but dropped sharply in 2024 to -200 million USD, suggesting a reduction in buyback activity. Dividends paid increased consistently each year, reaching -4,832 million USD in 2024, highlighting a commitment to returning value to shareholders.
The net cash flow from financing activities fluctuated substantially from an outflow of -8,271 million USD in 2021 to a large inflow of 21,048 million USD in 2023 and then an outflow again of -9,415 million USD in 2024.
- Cash and Cash Equivalents
- Cash holdings grew overall from 6,266 million USD at the end of 2020 to 11,973 million USD by the end of 2024, with some volatility year over year, such as a decline in 2022. The increase in cash balances in 2023 and 2024 indicates a strengthening liquidity position despite large acquisition payments and financing activities.