Name: CSX Corp. (NASDAQ:CSX) | 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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CSX Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings	4,166)	3,781)	2,765)	3,331)	3,309)
Depreciation and amortization	1,500)	1,420)	1,383)	1,349)	1,331)
Deferred income taxes	117)	167)	180)	273)	279)
Gain on property dispositions	(238)	(454)	(35)	(151)	(154)
Cash payments for restructuring charge	—)	—)	—)	—)	(15)
Other operating activities	(17)	12)	(32)	(69)	(117)
Accounts receivable	(101)	(141)	83)	45)	(46)
Other current assets	(22)	(25)	(75)	68)	101)
Accounts payable	140)	128)	(20)	98)	104)
Income and other taxes payable	(39)	72)	39)	2)	(104)
Other current liabilities	113)	139)	(25)	(96)	(47)
Changes in operating assets and liabilities	91)	173)	2)	117)	8)
Adjustments to reconcile net earnings to net cash provided by operating activities	1,453)	1,318)	1,498)	1,519)	1,332)
Net cash provided by operating activities	5,619)	5,099)	4,263)	4,850)	4,641)
Property additions	(2,133)	(1,791)	(1,626)	(1,657)	(1,745)
Purchase of short-term investments	(59)	(75)	(426)	(2,838)	(736)
Proceeds from sales of short-term investments	9)	5)	1,424)	2,108)	505)
Proceeds and advances from property dispositions	246)	529)	56)	254)	319)
Business acquisition, net of cash acquired	(227)	(541)	—)	—)	—)
Other investing activities	33)	(4)	(77)	31)	(27)
Net cash used in investing activities	(2,131)	(1,877)	(649)	(2,102)	(1,684)
Shares repurchased	(4,731)	(2,886)	(867)	(3,373)	(4,671)
Dividends paid	(852)	(839)	(797)	(763)	(751)
Long-term debt repaid	(186)	(426)	(745)	(518)	(19)
Long-term debt issued	2,000)	—)	1,000)	2,000)	3,000)
Other financing activities	—)	39)	(34)	6)	(59)
Net cash used in financing activities	(3,769)	(4,112)	(1,443)	(2,648)	(2,500)
Net increase (decrease) in cash and cash equivalents	(281)	(890)	2,171)	100)	457)
Cash and cash equivalents at beginning of period	2,239)	3,129)	958)	858)	401)
Cash and cash equivalents at end of period	1,958)	2,239)	3,129)	958)	858)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The cash flow profile from 2018 to 2022 demonstrates a strong capacity for generating liquidity from core operations, which is subsequently utilized for capital reinvestment and significant shareholder distributions. A consistent upward trajectory in net cash provided by operating activities is observed, rising from 4.64 billion in 2018 to 5.62 billion in 2022, despite a momentary decline in 2020.

Operating Performance and Cash Generation: Net earnings exhibited a general growth trend, increasing from 3.31 billion in 2018 to 4.17 billion in 2022. This growth is supported by a steady rise in depreciation and amortization, which provided a consistent non-cash add-back to operating cash flow, ranging from 1.33 billion to 1.50 billion over the period. The stability of these figures indicates a robust operational baseline.
Capital Investment and Investing Activities: Investing activities remained consistently negative, reflecting a disciplined approach to infrastructure expansion. Property additions showed a general increase, peaking at 2.13 billion in 2022. While short-term investment activity was volatile—marked by a significant purchase of 2.84 billion in 2019 followed by proceeds of 1.42 billion in 2020—the primary driver of cash outflows remained the acquisition of fixed assets.
Shareholder Returns and Financing Strategy: Financing activities were characterized by aggressive capital return programs. Share repurchases were highly variable but remained a primary use of cash, with peaks of 4.67 billion in 2018 and 4.73 billion in 2022. Dividend payments displayed a consistent year-over-year increase, rising from 751 million in 2018 to 852 million in 2022. The company managed its leverage through a cycle of long-term debt issuance and repayment, with a notable absence of new debt issuance in 2021.
Liquidity and Cash Position: The net change in cash and cash equivalents fluctuated significantly due to the timing of debt issuance and share buybacks. A substantial increase in cash was noted in 2020, leading to a peak ending balance of 3.13 billion, before normalizing to 1.96 billion by the end of 2022. This suggests that liquidity levels are managed dynamically to align with opportunistic share repurchases and capital expenditure requirements.

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