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.

Applied Materials Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Oct 26, 2025	Oct 27, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020
Net income	6,998)	7,177)	6,856)	6,525)	5,888)	3,619)
Depreciation and amortization	435)	392)	515)	444)	394)	376)
Restructuring charges	179)	—)	—)	(4)	148)	—)
Deferred income taxes	639)	(633)	24)	(223)	80)	80)
(Gain) loss and impairments on investments, net	(792)	(15)	(16)	—)	—)	—)
Share-based compensation	668)	577)	490)	413)	346)	307)
Other	31)	62)	56)	36)	(70)	60)
Accounts receivable	49)	(69)	903)	(1,109)	(1,989)	(427)
Inventories	(494)	304)	207)	(1,590)	(405)	(421)
Other current and non-current assets	(119)	287)	(48)	(16)	(602)	(161)
Accounts payable and accrued expenses	307)	281)	(138)	390)	465)	327)
Contract liabilities	(283)	(126)	(167)	1,039)	755)	(16)
Income taxes payable	250)	389)	(20)	(541)	396)	(10)
Other liabilities	90)	51)	38)	35)	36)	70)
Changes in operating assets and liabilities, net of amounts acquired	(200)	1,117)	775)	(1,792)	(1,344)	(638)
Adjustments required to reconcile net income to cash provided by operating activities	960)	1,500)	1,844)	(1,126)	(446)	185)
Cash provided by operating activities	7,958)	8,677)	8,700)	5,399)	5,442)	3,804)
Capital expenditures	(2,260)	(1,190)	(1,106)	(787)	(668)	(422)
Cash paid for acquisitions, net of cash acquired	(29)	—)	(25)	(441)	(12)	(107)
Proceeds from asset sale	33)	—)	—)	—)	—)	—)
Proceeds from sales and maturities of investments	5,528)	2,451)	1,268)	1,363)	1,471)	1,754)
Purchases of investments	(6,054)	(3,588)	(1,672)	(1,492)	(2,007)	(1,355)
Cash used in investing activities	(2,782)	(2,327)	(1,535)	(1,357)	(1,216)	(130)
Debt borrowings, net of issuance costs	991)	694)	—)	—)	—)	2,979)
Debt repayments	(700)	—)	—)	—)	—)	(2,882)
Proceeds from commercial paper	503)	401)	991)	—)	—)	—)
Repayments of commercial paper	(502)	(400)	(900)	—)	—)	—)
Proceeds from common stock issuances	261)	243)	227)	199)	175)	174)
Common stock repurchases	(4,895)	(3,823)	(2,189)	(6,103)	(3,750)	(649)
Tax withholding payments for vested equity awards	(248)	(291)	(179)	(266)	(178)	(172)
Payments of dividends to stockholders	(1,384)	(1,192)	(975)	(873)	(838)	(787)
Payments of debt issuance costs	(3)	—)	—)	—)	—)	—)
Repayments of principals on finance leases	—)	(102)	(7)	—)	—)	—)
Cash used in financing activities	(5,977)	(4,470)	(3,032)	(7,043)	(4,591)	(1,337)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents	(801)	1,880)	4,133)	(3,001)	(365)	2,337)
Cash, cash equivalents and restricted cash equivalents, beginning of period	8,113)	6,233)	2,100)	5,101)	5,466)	3,129)
Cash, cash equivalents and restricted cash equivalents, end of period	7,312)	8,113)	6,233)	2,100)	5,101)	5,466)

Based on: 10-K (reporting date: 2025-10-26), 10-K (reporting date: 2024-10-27), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-10-25).

Net Income: Net income displayed a generally upward trend from 3619 million USD in 2020 to a peak of 7177 million USD in 2024, followed by a slight decrease to 6998 million USD in 2025. This indicates expanding profitability over the analyzed period with a minor decline in the latest year.
Depreciation and Amortization: Depreciation and amortization expenses increased steadily from 376 million USD in 2020 to 515 million USD in 2023, then decreased to 392 million USD in 2024 before rising again to 435 million USD in 2025. This shows fluctuating investment in long-term assets and their systematic expensing.
Restructuring Charges: Restructuring charges were generally minimal or negative with a notable charge of 148 million USD in 2021 and a charge resurgence to 179 million USD in 2025, suggesting occasional organizational adjustments or cost-cutting measures.
Deferred Income Taxes: Deferred income taxes experienced volatile swings, initially positive at 80 million USD in early years, turning negative in 2022 (-223 million USD) and 2024 (-633 million USD), then sharply positive again at 639 million USD in 2025. This volatility may reflect tax timing differences or strategic tax planning.
Investment Gains/Losses: Gains or losses on investments appeared only in later years, with minor losses of 16 and 15 million USD in 2023 and 2024 respectively, escalating to a significant loss of 792 million USD in 2025. This evolution suggests increasing investment risk or impairment events recently.
Share-based Compensation: Share-based compensation consistently increased from 307 million USD in 2020 to 668 million USD in 2025, indicating a growing emphasis on equity incentives as part of employee compensation.
Operating Assets and Liabilities Changes: The net changes in operating assets and liabilities showed substantial negative impacts (-638 million USD in 2020 and worsening to -1792 million USD in 2022), followed by positive adjustments in 2023 and 2024, before a negative turn again in 2025 (-200 million USD). This pattern reflects varying working capital management over time.
Cash Provided by Operating Activities: Operating cash flow improved from 3804 million USD in 2020 to a high of 8700 million USD in 2023, slightly decreasing thereafter but remaining robust at 7958 million USD in 2025. The strong cash generation supports operational efficiency.
Capital Expenditures: Capital expenditures showed a generally increasing commitment to fixed assets, rising from 422 million USD in 2020 to a significant 2260 million USD in 2025, indicating accelerated investment in property, plant, and equipment.
Investing Activities: Cash used in investing activities remained negative throughout, deepening from -130 million USD in 2020 to -2782 million USD in 2025. Proceeds from sales and maturities of investments were exceeded consistently by purchases of investments, signaling a net investment stance. The variability in acquisition payments further influenced investing cash flows sporadically.
Financing Activities: Cash used in financing activities fluctuated notably, with massive outflows in 2021 (-4591 million USD) and 2022 (-7043 million USD), reflecting heavy share repurchases and dividend payments. Although outflows decreased in 2023, 2024, and 2025, they remained significant (ranging from -3032 million USD to -5977 million USD), indicating continued return of capital to shareholders and debt management.
Liquidity Position: Cash and equivalents exhibited marked fluctuations, increasing from 3129 million USD at the start of 2020 to a peak of 8113 million USD in late 2024, before declining to 7312 million USD by 2025. The increase was supported by strong operating cash flows but partly offset by heavy investing and financing outflows in recent years.
Debt and Commercial Paper: Debt borrowings and repayments data show intermittent net issuances, with new borrowings in 2024 and 2025 and repayments of previous borrowings and commercial paper variably timing out. This indicates active debt management to balance capital structure needs.
Equity Transactions: Proceeds from common stock issuances increased steadily, while common stock repurchases were substantial, peaking in 2022 at -6103 million USD. The net effect suggests a consistent strategy of share buybacks exceeding issuances, contributing to capital return strategies.
Dividends and Other Payments: Dividend payments rose progressively from 787 million USD in 2020 to 1384 million USD in 2025, confirming increasing shareholder distributions. Tax withholding payments related to equity awards also increased moderately over the period.
Summary: The financial data reveal a company generating strong and growing net income and operating cash flow, balanced against increasing investments in fixed assets and securities. Financing activities mainly reflect significant shareholder returns via repurchases and dividends, alongside active debt management. Some volatility in deferred taxes and investment impairments signals complex tax and investment environments. Overall, financial strategies emphasize growth, capital investment, and shareholder value return, with liquidity maintained at substantial levels despite fluctuations.

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Applied Materials Inc. (NASDAQ:AMAT)

Cash Flow Statement