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 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021	Jul 25, 2020	Jul 27, 2019
Net income	10,320)	12,613)	11,812)	10,591)	11,214)	11,621)
Depreciation, amortization, and other	2,507)	1,726)	1,957)	1,862)	1,808)	1,897)
Share-based compensation expense	3,074)	2,353)	1,886)	1,761)	1,569)	1,570)
Provision (benefit) for receivables	34)	31)	55)	(6)	93)	40)
Deferred income taxes	(972)	(2,085)	(309)	(384)	(38)	(350)
(Gains) losses on divestitures, investments and other, net	215)	206)	(453)	(354)	(138)	(24)
Accounts receivable	(289)	734)	(1,009)	(107)	(107)	(84)
Inventories	275)	(1,069)	(1,030)	(244)	84)	131)
Financing receivables	76)	1,102)	1,241)	1,577)	(797)	(249)
Other assets	(671)	5)	(1,615)	(797)	96)	(955)
Accounts payable	(90)	27)	(55)	(53)	141)	87)
Income taxes, net	(4,539)	1,218)	(690)	(549)	(322)	312)
Accrued compensation	(696)	651)	(427)	643)	(78)	277)
Deferred revenue	1,220)	2,326)	1,328)	1,560)	2,011)	1,407)
Other liabilities	416)	48)	535)	(46)	(110)	151)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures	(4,298)	5,042)	(1,722)	1,984)	918)	1,077)
Adjustments to reconcile net income to net cash provided by operating activities	560)	7,273)	1,414)	4,863)	4,212)	4,210)
Net cash provided by operating activities	10,880)	19,886)	13,226)	15,454)	15,426)	15,831)
Purchases of investments	(4,230)	(10,871)	(6,070)	(9,328)	(9,212)	(2,416)
Proceeds from sales of investments	4,136)	1,054)	2,660)	3,373)	5,631)	7,388)
Proceeds from maturities of investments	6,367)	5,978)	5,686)	8,409)	7,975)	12,928)
Acquisitions, net of cash and cash equivalents acquired	(25,994)	(301)	(373)	(7,038)	(327)	(2,175)
Purchases of investments in privately held companies	(284)	(185)	(186)	(175)	(190)	(148)
Return of investments in privately held companies	202)	90)	237)	194)	224)	159)
Acquisition of property and equipment	(670)	(849)	(477)	(692)	(770)	(909)
Other	(5)	(23)	76)	(28)	169)	10)
Net cash (used in) provided by investing activities	(20,478)	(5,107)	1,553)	(5,285)	3,500)	14,837)
Issuances of common stock	714)	700)	660)	643)	655)	640)
Repurchases of common stock, repurchase program	(5,787)	(4,293)	(7,689)	(2,877)	(2,659)	(20,717)
Shares repurchased for tax withholdings on vesting of restricted stock units	(992)	(597)	(692)	(636)	(727)	(862)
Short-term borrowings, original maturities of 90 days or less, net	478)	(602)	606)	(5)	(3,470)	3,446)
Issuances of debt	31,818)	—)	1,049)	—)	—)	2,250)
Repayments of debt	(9,826)	(500)	(3,550)	(3,000)	(6,720)	(6,780)
Repayments of Splunk convertible debt, net of capped call proceeds	(3,140)	—)	—)	—)	—)	—)
Dividends paid	(6,384)	(6,302)	(6,224)	(6,163)	(6,016)	(5,979)
Other	(37)	(32)	(122)	(1)	51)	113)
Net cash provided by (used in) financing activities	6,844)	(11,626)	(15,962)	(12,039)	(18,886)	(27,889)
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(31)	(105)	(180)	—)	—)	—)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	(2,785)	3,048)	(1,363)	(1,870)	40)	2,779)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of fiscal year	11,627)	8,579)	9,942)	11,812)	11,772)	8,993)
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of fiscal year	8,842)	11,627)	8,579)	9,942)	11,812)	11,772)

Based on: 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), 10-K (reporting date: 2019-07-27).

Net Income: Net income figures displayed a fluctuating trend, starting at $11,621 million in 2019, declining to $10,591 million in 2021, peaking at $12,613 million in 2023, and then falling notably to $10,320 million in 2024. This indicates volatility in profitability over the period.
Depreciation, Amortization, and Other Expenses: These expenses remained relatively stable from 2019 through 2022, ranging between $1,726 million and $1,957 million, before increasing significantly to $2,507 million in 2024, suggesting rising non-cash or other related charges.
Share-Based Compensation Expense: This expense rose consistently each year, increasing from $1,570 million in 2019 to $3,074 million in 2024, indicating a growing impact of equity incentive costs on financial statements.
Provision for Receivables: The provision fluctuated, showing low positive or slightly negative values, with no consistent upward or downward trend, suggesting relatively stable credit risk assessment impacts during the years.
Deferred Income Taxes: Deferred income taxes showed negative balances throughout, with significant decreases in 2023 (-$2,085 million) and 2024 (-$972 million), indicating large deferred tax asset recognition or changes in tax positions.
Gains/Losses on Divestitures and Investments: Gains and losses were negative in earlier years up to 2022 but shifted to positive in 2023 and 2024, reflecting a change from net losses to net gains in these activities.
Working Capital Components: Accounts receivable and inventories experienced notable negative swings in 2020 and 2022-2023, with a partial rebound in 2024, indicating significant fluctuations in current asset management. Accounts payable and accrued compensation showed varying positive and negative values, reflecting inconsistent trends in short-term liabilities and employee-related accruals.
Deferred Revenue: Deferred revenue increased overall, with a peak in 2023 ($2,326 million), suggesting growing advance payments from customers or subscription-related income expansion, followed by a decline in 2024.
Net Cash Provided by Operating Activities: Operating cash flow generally remained strong, ranging from approximately $13.2 billion to $19.9 billion, peaking in 2023, then declining notably in 2024 to $10.9 billion, paralleling net income fluctuations.
Investing Activities: Investing cash flow showed volatility, with positive net cash inflows in 2019 and 2022, but negative outflows in other years, most notably a large negative $20.5 billion in 2024 driven by massive acquisitions. Purchases of investments were substantial and fluctuated significantly, while sales and maturities of investments declined over time. Acquisitions varied considerably, with an exceptional jump in 2024.
Financing Activities: Financing cash flows were predominantly negative through most years, driven by significant common stock repurchases and dividends paid consistently around $6.3 billion annually. Exceptionally, in 2024, financing activities showed a positive inflow of $6.8 billion attributed mainly to large debt issuances. Repayments of debt fluctuated, decreasing in volume in more recent years. Stock issuances remained relatively stable but minor compared to repurchases and dividends.
Cash Position and Changes: The cash, cash equivalents, and restricted cash balances exhibited volatility, peaking at $11.6 billion in 2023 before falling to $8.8 billion in 2024. Net increases in cash were positive early in the period, turning negative in more recent years, reflecting the combined effects of volatile investing and financing activities.
Summary: The financial data reflect a company with strong operating cash flow but facing varying profitability and significant fluctuations in investment and financing activities. Rising share-based compensation and depreciation costs indicate increased non-cash expenses. The large investment outflow and debt issuance in 2024 suggest aggressive expansion or strategic acquisitions. The negative net income and cash flow trends in 2024 highlight challenges in maintaining prior profitability and liquidity levels.

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Cisco Systems Inc. (NASDAQ:CSCO)

Cash Flow Statement