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.

Cisco Systems Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Jul 26, 2025	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020
Net income	10,180)	10,320)	12,613)	11,812)	10,591)	11,214)
Depreciation, amortization, and other	2,811)	2,507)	1,726)	1,957)	1,862)	1,808)
Share-based compensation expense	3,641)	3,074)	2,353)	1,886)	1,761)	1,569)
Provision for (benefit from) receivables	24)	34)	31)	55)	(6)	93)
Deferred income taxes	(1,133)	(972)	(2,085)	(309)	(384)	(38)
(Gains) losses on divestitures, investments and other, net	(38)	215)	206)	(453)	(354)	(138)
Accounts receivable	(22)	(289)	734)	(1,009)	(107)	(107)
Inventories	209)	275)	(1,069)	(1,030)	(244)	84)
Financing receivables	214)	76)	1,102)	1,241)	1,577)	(797)
Other assets	(499)	(671)	5)	(1,615)	(797)	96)
Accounts payable	257)	(90)	27)	(55)	(53)	141)
Income taxes, net	(1,839)	(4,539)	1,218)	(690)	(549)	(322)
Accrued compensation	(53)	(696)	651)	(427)	643)	(78)
Deferred revenue	248)	1,220)	2,326)	1,328)	1,560)	2,011)
Other liabilities	193)	416)	48)	535)	(46)	(110)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures	(1,292)	(4,298)	5,042)	(1,722)	1,984)	918)
Adjustments to reconcile net income to net cash provided by operating activities	4,013)	560)	7,273)	1,414)	4,863)	4,212)
Net cash provided by operating activities	14,193)	10,880)	19,886)	13,226)	15,454)	15,426)
Purchases of investments	(4,589)	(4,230)	(10,871)	(6,070)	(9,328)	(9,212)
Proceeds from sales of investments	2,643)	4,136)	1,054)	2,660)	3,373)	5,631)
Proceeds from maturities of investments	4,943)	6,367)	5,978)	5,686)	8,409)	7,975)
Acquisitions, net of cash and cash equivalents acquired	(291)	(25,994)	(301)	(373)	(7,038)	(327)
Purchases of investments in privately held companies	(383)	(284)	(185)	(186)	(175)	(190)
Return of investments in privately held companies	306)	202)	90)	237)	194)	224)
Acquisition of property and equipment	(905)	(670)	(849)	(477)	(692)	(770)
Other	9)	(5)	(23)	76)	(28)	169)
Net cash (used in) provided by investing activities	1,733)	(20,478)	(5,107)	1,553)	(5,285)	3,500)
Issuances of common stock	736)	714)	700)	660)	643)	655)
Repurchases of common stock, repurchase program	(6,000)	(5,787)	(4,293)	(7,689)	(2,877)	(2,659)
Shares repurchased for tax withholdings on vesting of restricted stock units	(1,222)	(992)	(597)	(692)	(636)	(727)
Short-term borrowings, original maturities of 90 days or less, net	(31)	478)	(602)	606)	(5)	(3,470)
Issuances of debt	19,292)	31,818)	—)	1,049)	—)	—)
Repayments of debt	(22,073)	(9,826)	(500)	(3,550)	(3,000)	(6,720)
Repayments of Splunk convertible debt, net of capped call proceeds	—)	(3,140)	—)	—)	—)	—)
Dividends paid	(6,437)	(6,384)	(6,302)	(6,224)	(6,163)	(6,016)
Other	(80)	(37)	(32)	(122)	(1)	51)
Net cash provided by (used in) financing activities	(15,815)	6,844)	(11,626)	(15,962)	(12,039)	(18,886)
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(43)	(31)	(105)	(180)	—)	—)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	68)	(2,785)	3,048)	(1,363)	(1,870)	40)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of fiscal year	8,842)	11,627)	8,579)	9,942)	11,812)	11,772)
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of fiscal year	8,910)	8,842)	11,627)	8,579)	9,942)	11,812)

Based on: 10-K (reporting date: 2025-07-26), 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-25).

Net Income: Net income exhibited fluctuations over the analyzed period, initially declining from 11,214 million USD in 2020 to 10,591 million USD in 2021, followed by a recovery and peak at 12,613 million USD in 2023, before decreasing again to 10,180 million USD in 2025. Overall, the figure shows variability without a consistent growth trend.
Depreciation, Amortization, and Other Expenses: These expenses increased gradually from 1,808 million USD in 2020 to a higher level of 2,811 million USD by 2025, highlighting an upward trend in non-cash operational costs.
Share-Based Compensation Expense: This expense consistently rose throughout the period, reaching 3,641 million USD in 2025 from 1,569 million USD in 2020, more than doubling and indicating greater allocation toward employee equity incentives over time.
Provision for Receivables: The provision remained relatively low and stable, fluctuating between small positive and negative values, suggesting minor adjustments in receivables risk management.
Deferred Income Taxes and Income Taxes, Net: Deferred income taxes showed increased negative values in the middle years, indicating timing differences impacting tax expense recognition, while income taxes paid net fluctuated widely, with a notable negative spike in 2024, implying a substantial tax refund or credit during that year.
Operating Assets and Liabilities: Changes in accounts receivable, inventories, and other assets tended to reverse direction over the years, with substantial increases or decreases impacting working capital dynamics. Deferred revenue showed a general declining trend, particularly steep after 2023.
Net Cash Provided by Operating Activities: The net cash flow from operations remained robust across the years, peaking in 2023 at 19,886 million USD. However, it declined in 2024 before increasing again in 2025, maintaining a generally strong cash generation capability.
Investing Activities: Investing cash flows were volatile, switching from positive to negative values multiple times. There was a significant spike in acquisitions in 2024 with a net cash outflow of 25,994 million USD, which notably influenced the negative cash flow during that year. Purchases and proceeds from investments also fluctuated, reflecting active portfolio management.
Financing Activities: Financing activities predominantly used cash throughout the period, with heavy stock repurchases, consistent dividend payments steadily increasing, and debt issuances and repayments varying. Notably, a large debt issuance occurred in 2024, followed by significant repayments in later years. Net cash from financing turned positive only in 2024, indicating a noteworthy shift that year.
Cash and Cash Equivalents: Cash balances showed initial stability, declined during the middle years, improved significantly in 2023, then decreased again in 2024 and stabilized in 2025. The net increase in cash matched this pattern, reflecting the influence of operating, investing, and financing cash flows combined with foreign currency effects.
Summary of Financial Trends: The company demonstrated strong operational cash flow despite variability in net income. Investments and acquisition activities introduced volatility in investing cash flow, especially visible in 2024. Financing activities were characterized by sustained shareholder returns through dividends and stock repurchases, alongside active debt management. Increased share-based compensation expenses suggest an emphasis on employee incentives. Overall, the financial data reveals cyclical capital allocation patterns and a generally solid liquidity position with strategic flexibility evident in financing decisions.

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Cisco Systems Inc. (NASDAQ:CSCO)

Cash Flow Statement