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.

Gilead Sciences Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	480)	5,613)	4,566)	6,201)	89)
Depreciation expense	381)	354)	323)	329)	288)
Amortization expense	2,386)	2,339)	1,780)	1,721)	1,192)
Stock-based compensation expense	835)	766)	637)	635)	643)
Deferred income taxes	(1,844)	(962)	(1,552)	(116)	(214)
Net loss from equity securities	274)	167)	657)	610)	1,662)
Acquired in-process research and development expenses	4,663)	1,155)	944)	177)	5,856)
In-process research and development impairment	4,180)	50)	2,700)	—)	—)
Other	353)	827)	780)	1,338)	290)
Accounts receivable, net	139)	157)	(406)	313)	(1,171)
Inventories	(426)	(842)	(310)	11)	(195)
Prepaid expenses and other	(259)	39)	(134)	(45)	(214)
Accounts payable	290)	(347)	226)	(118)	80)
Income tax assets and liabilities, net	(732)	(1,768)	(364)	(361)	(778)
Accrued and other liabilities	108)	458)	(775)	689)	640)
Changes in operating assets and liabilities	(880)	(2,303)	(1,763)	489)	(1,638)
Adjustments to reconcile net income to net cash provided by operating activities	10,348)	2,393)	4,506)	5,183)	8,079)
Net cash provided by operating activities	10,828)	8,006)	9,072)	11,384)	8,168)
Purchases of marketable debt securities	(244)	(1,930)	(1,770)	(3,517)	(20,315)
Proceeds from sales of marketable debt securities	2,265)	510)	412)	730)	23,239)
Proceeds from maturities of marketable debt securities	327)	1,334)	1,590)	2,180)	9,479)
Acquisitions, including in-process research and development, net of cash acquired	(4,840)	(1,152)	(1,797)	(1,402)	(25,742)
Purchases of equity securities	(492)	(442)	(172)	(380)	(455)
Capital expenditures	(523)	(585)	(728)	(579)	(650)
Other	58)	—)	(1)	(163)	(171)
Net cash used in investing activities	(3,449)	(2,265)	(2,466)	(3,131)	(14,615)
Proceeds from debt financing, net of issuance costs	3,464)	1,980)	—)	—)	8,184)
Proceeds from issuances of common stock	422)	232)	309)	169)	256)
Repurchases of common stock under repurchase programs	(1,150)	(1,000)	(1,396)	(546)	(1,583)
Repayments of debt and other obligations	(1,970)	(2,250)	(1,500)	(4,750)	(2,500)
Payments of dividends	(3,918)	(3,809)	(3,709)	(3,605)	(3,449)
Other	(281)	(278)	(173)	(145)	(138)
Net cash provided by (used in) financing activities	(3,433)	(5,125)	(6,469)	(8,877)	770)
Effect of exchange rate changes on cash and cash equivalents	(40)	57)	(63)	(35)	43)
Net change in cash and cash equivalents	3,906)	673)	74)	(659)	(5,634)
Cash and cash equivalents at beginning of period	6,085)	5,412)	5,338)	5,997)	11,631)
Cash and cash equivalents at end of period	9,991)	6,085)	5,412)	5,338)	5,997)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Net income: Net income exhibited substantial volatility over the analyzed period, peaking dramatically in 2021 at $6.2 billion, followed by a decline in subsequent years and a significant drop to $480 million in 2024. This indicates considerable fluctuations in profitability.
Depreciation and amortization expenses: Depreciation expense showed a moderate upward trend from $288 million in 2020 to $381 million in 2024. Amortization expense increased steadily, rising from $1.2 billion in 2020 to $2.4 billion in 2024, suggesting increased capitalized intangible assets or acquisitions.
Stock-based compensation expense: This expense remained relatively stable around $635-$637 million from 2020 to 2022, with a noticeable increase to $835 million by 2024, reflecting a potential rise in equity compensation levels.
Deferred income taxes: Deferred income taxes presented negative values throughout, with substantial fluctuations and an overall increasing absolute value, reaching -$1.8 billion in 2024, highlighting variability in tax assets or liabilities recognition.
Net loss from equity securities: The net loss from equity securities decreased significantly from $1.7 billion in 2020 to $274 million in 2024, indicating improved performance or reduced impairments in equity holdings over time.
Acquired in-process research and development (IPR&D) expenses: IPR&D expenses demonstrated volatility, with a large initial amount of $5.9 billion in 2020, declining sharply in 2021 and ebbing to $4.7 billion in 2024. This suggests fluctuating acquisition activity or capitalization policies.
In-process research and development impairment: There were no impairments reported before 2022. However, significant impairments were recorded in 2022 ($2.7 billion) and 2024 ($4.2 billion), indicating write-downs of previously capitalized development costs.
Other operating items: The “Other” category showed fluctuating amounts, peaking at $1.3 billion in 2021 and falling to $353 million in 2024, evidencing irregular miscellaneous operational impacts.
Working capital components: Accounts receivable and inventories fluctuated between negative and positive values with no clear trend, indicating variability in operational management. Accounts payable also oscillated notably, moving from a positive $80 million in 2020 to negative and positive values in subsequent years. Changes in operating assets and liabilities were negative in the latter years, suggesting increasing net outflows from working capital.
Cash flows from operating activities: Net cash provided by operating activities remained robust and positive throughout, with a low in 2023 of $8.0 billion and a peak in 2021 at $11.4 billion. Adjustments to reconcile net income to cash provided decreased until 2023 before surging in 2024 to over $10.3 billion, indicating sizable non-cash adjustments or working capital changes.
Investing activities: Investing cash flows consistently reflected net cash outflows, primarily driven by large purchases of marketable debt securities and acquisitions. The largest outflow related to acquisitions occurred in 2020 ($25.7 billion), diminishing in following years but rising again in 2024 ($4.8 billion). Capital expenditures remained relatively stable but declined modestly over time from $650 million to $523 million.
Financing activities: Net cash from financing activities was positive only in 2020 ($770 million), turning negative thereafter, with the largest outflow in 2021 (-$8.9 billion). Dividends payments increased progressively each year, reaching nearly $3.9 billion by 2024. Stock repurchases were sizable annually but decreased compared to prior years, reflecting active capital return policies. Debt financing showed irregular proceeds with some years absent, while repayments varied but remained substantial.
Cash and cash equivalents: The cash balance declined sharply in 2020 but recovered gradually, ending the period at nearly $10 billion in 2024. Net changes in cash and equivalents were mostly positive in the later years, supported by operating cash inflows despite investing and financing outflows.
Summary: The data depicts a company experiencing major fluctuations in profitability, substantial investment and acquisition activities, and active capital management through dividends, stock repurchases, and debt operations. Operating cash generation remains strong despite earnings volatility. Notable impairments and tax movements suggest underlying asset revaluations and tax planning activities. Working capital shows inconsistent management results, while investing and financing cash flows highlight a focus on strategic growth and shareholder returns, balanced by increasing cash reserves over time.

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Gilead Sciences Inc. (NASDAQ:GILD)

Cash Flow Statement