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 29, 2023	Oct 30, 2022	Oct 31, 2021	Oct 25, 2020	Oct 27, 2019	Oct 28, 2018
Net income	6,856)	6,525)	5,888)	3,619)	2,706)	3,313)
Depreciation and amortization	515)	444)	394)	376)	363)	457)
Severance and related charges	—)	(4)	148)	—)	—)	—)
Deferred income taxes	24)	(223)	80)	80)	49)	94)
Other	40)	36)	(70)	60)	(19)	4)
Share-based compensation	490)	413)	346)	307)	263)	258)
Accounts receivable	903)	(1,109)	(1,989)	(427)	(207)	(226)
Inventories	207)	(1,590)	(405)	(421)	248)	(792)
Other current and non-current assets	(48)	(16)	(602)	(161)	(86)	(93)
Accounts payable and accrued expenses	(138)	390)	465)	327)	(247)	179)
Contract liabilities	(167)	1,039)	755)	(16)	135)	(318)
Income taxes payable	(20)	(541)	396)	(10)	44)	886)
Other liabilities	38)	35)	36)	70)	(2)	25)
Changes in operating assets and liabilities, net of amounts acquired	775)	(1,792)	(1,344)	(638)	(115)	(339)
Adjustments required to reconcile net income to cash provided by operating activities	1,844)	(1,126)	(446)	185)	541)	474)
Cash provided by operating activities	8,700)	5,399)	5,442)	3,804)	3,247)	3,787)
Capital expenditures	(1,106)	(787)	(668)	(422)	(441)	(622)
Cash paid for acquisitions, net of cash acquired	(25)	(441)	(12)	(107)	(28)	(6)
Proceeds from sales and maturities of investments	1,268)	1,363)	1,471)	1,754)	1,940)	3,276)
Purchases of investments	(1,672)	(1,492)	(2,007)	(1,355)	(1,914)	(2,077)
Cash (used in) provided by investing activities	(1,535)	(1,357)	(1,216)	(130)	(443)	571)
Proceeds from commercial paper	991)	—)	—)	—)	—)	—)
Repayments of commercial paper	(900)	—)	—)	—)	—)	—)
Debt borrowings, net of issuance costs	—)	—)	—)	2,979)	—)	—)
Debt repayments	—)	—)	—)	(2,882)	—)	—)
Proceeds from common stock issuances	227)	199)	175)	174)	145)	124)
Common stock repurchases	(2,189)	(6,103)	(3,750)	(649)	(2,403)	(5,283)
Tax withholding payments for vested equity awards	(179)	(266)	(178)	(172)	(86)	(164)
Payments of dividends to stockholders	(975)	(873)	(838)	(787)	(771)	(605)
Repayments of principals on finance leases	(7)	—)	—)	—)	—)	—)
Cash used in financing activities	(3,032)	(7,043)	(4,591)	(1,337)	(3,115)	(5,928)
Increase (decrease) in cash, cash equivalents and restricted cash equivalents	4,133)	(3,001)	(365)	2,337)	(311)	(1,570)
Cash, cash equivalents and restricted cash equivalents, beginning of period	2,100)	5,101)	5,466)	3,129)	3,440)	5,010)
Cash, cash equivalents and restricted cash equivalents, end of period	6,233)	2,100)	5,101)	5,466)	3,129)	3,440)

Based on: 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), 10-K (reporting date: 2019-10-27), 10-K (reporting date: 2018-10-28).

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Cash flow statement item	Description	The company
Cash provided by operating activities	Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.	Applied Materials Inc. cash provided by operating activities decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Cash (used in) provided by investing activities	Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.	Applied Materials Inc. cash (used in) provided by investing activities decreased from 2021 to 2022 and from 2022 to 2023.
Cash used in financing activities	Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.	Applied Materials Inc. cash used in financing activities decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Applied Materials Inc. (NASDAQ:AMAT)

Cash Flow Statement