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.

Lam Research Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Jun 30, 2024	Jun 25, 2023	Jun 26, 2022	Jun 27, 2021	Jun 28, 2020	Jun 30, 2019
Net income	3,827,772)	4,510,931)	4,605,286)	3,908,458)	2,251,753)	2,191,430)
Depreciation and amortization	359,699)	342,432)	333,739)	307,151)	268,525)	309,281)
Deferred income taxes	(198,981)	(172,061)	(257,438)	(151,477)	(17,777)	(4,980)
Equity-based compensation expense	293,058)	286,600)	259,064)	220,164)	189,197)	187,234)
Other, net	10,243)	52,298)	(44,751)	(17,392)	6,628)	1,524)
Accounts receivable, net of allowance	303,443)	1,452,256)	(1,287,680)	(928,928)	(641,827)	732,138)
Inventories	528,723)	(961,968)	(1,351,344)	(792,591)	(411,608)	281,355)
Prepaid expenses and other assets	(15,535)	136,016)	(53,121)	(59,189)	(14,354)	(17,864)
Trade accounts payable	125,939)	(522,200)	167,884)	184,615)	208,478)	(131,472)
Deferred profit	(277,440)	163,467)	604,573)	508,008)	76,207)	(178,074)
Accrued expenses and other liabilities	(304,652)	(108,833)	123,462)	409,344)	211,229)	(194,559)
Changes in operating asset and liability accounts	360,478)	158,738)	(1,796,226)	(678,741)	(571,875)	491,524)
Adjustments to reconcile net income to net cash provided by operating activities	824,497)	668,007)	(1,505,612)	(320,295)	(125,302)	984,583)
Net cash provided by operating activities	4,652,269)	5,178,938)	3,099,674)	3,588,163)	2,126,451)	3,176,013)
Capital expenditures and intangible assets	(396,670)	(501,568)	(546,034)	(349,096)	(203,239)	(303,491)
Business acquisitions, net of cash acquired	—)	(119,955)	—)	—)	—)	—)
Purchases of available-for-sale securities	—)	—)	(567,819)	(3,389,388)	(2,897,627)	(2,930,049)
Proceeds from maturities of available-for-sale securities	34,336)	91,295)	190,269)	2,381,758)	1,647,379)	466,539)
Proceeds from sales of available-for-sale securities	3,430)	6,837)	1,543,434)	1,472,152)	1,235,248)	1,137,302)
Other, net	(11,710)	(11,171)	(7,575)	(42,155)	(25,845)	(7,355)
Net cash (used for) provided by investing activities	(370,614)	(534,562)	612,275)	73,271)	(244,084)	(1,637,054)
Principal payments on long-term debt and finance lease obligations and payments for debt issuance costs	(256,104)	(23,206)	(11,889)	(862,060)	(667,537)	(117,653)
Net proceeds from issuance of long-term debt	—)	—)	—)	—)	1,974,651)	2,476,720)
Net proceeds (repayment) from commercial paper	—)	—)	—)	—)	—)	(361,754)
Proceeds from borrowings on revolving credit facility	—)	—)	—)	—)	1,250,000)	—)
Repayment of borrowings on revolving credit facility	—)	—)	—)	—)	(1,250,000)	—)
Treasury stock purchases	(2,842,807)	(2,017,012)	(3,865,663)	(2,697,704)	(1,369,649)	(3,780,611)
Dividends paid	(1,018,915)	(907,907)	(815,290)	(726,992)	(656,838)	(678,348)
Reissuances of treasury stock related to employee stock purchase plan	119,966)	109,899)	108,178)	97,764)	85,439)	77,961)
Proceeds from issuance of common stock	15,553)	11,111)	5,682)	24,123)	8,084)	6,813)
Other, net	(13,543)	(3,552)	45)	(2,113)	1,920)	(13,208)
Net cash used for financing activities	(3,995,850)	(2,830,667)	(4,578,937)	(4,166,982)	(623,930)	(2,390,080)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(22,374)	128)	(30,227)	7,215)	(2,750)	(4,041)
Net change in cash, cash equivalents and restricted cash	263,431)	1,813,837)	(897,215)	(498,333)	1,255,687)	(855,162)
Cash, cash equivalents and restricted cash at beginning of year	5,587,372)	3,773,535)	4,670,750)	5,169,083)	3,913,396)	4,768,558)
Cash, cash equivalents and restricted cash at end of year	5,850,803)	5,587,372)	3,773,535)	4,670,750)	5,169,083)	3,913,396)

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-25), 10-K (reporting date: 2022-06-26), 10-K (reporting date: 2021-06-27), 10-K (reporting date: 2020-06-28), 10-K (reporting date: 2019-06-30).

The financial data presents several notable trends over the six-year period from June 2019 to June 2024. Net income demonstrates a general upward trajectory from 2019 to 2022, reaching its peak in 2022 before experiencing a decline in the subsequent two years. Specifically, net income increased significantly from approximately 2.19 billion USD in 2019 to about 4.61 billion USD in 2022, then decreased to approximately 3.83 billion USD in 2024.

Depreciation and amortization expenses exhibit a gradual increase throughout the period, rising from roughly 309 million USD in 2019 to around 360 million USD by 2024, indicating ongoing investments in fixed assets or intangible assets.

Deferred income taxes display negative values across all years, with the magnitude increasing substantially during the earlier years, particularly from 2019 to 2022, suggesting growing deferred tax liabilities or reductions in deferred tax assets.

Equity-based compensation expense consistently rises each year, from approximately 187 million USD in 2019 to nearly 293 million USD in 2024, reflecting increasing stock-based remuneration costs.

Operating asset and liability accounts show high volatility. Accounts receivable show irregular values: positive in 2019 and 2023, but negative in intervening years. Inventories follow a similar pattern, with positive values in 2019 and 2024 but negative in between, indicating fluctuations in working capital management. Prepaid expenses and other assets, trade accounts payable, deferred profit, and accrued expenses and other liabilities also show considerable variances, alternating between positive and negative values, signifying unstable changes in operating assets and liabilities over the years.

The net cash provided by operating activities consistently remains positive, with fluctuations in magnitude. It peaked in 2023 at approximately 5.18 billion USD and slightly declined in 2024 but stayed well above earlier years, suggesting strong operational cash generation.

Capital expenditures and intangible assets investments increased noticeably between 2019 and 2022, from approximately 303 million USD to about 546 million USD outflows, then decreased in the following years, indicating a possible easing in capital spending.

Investing activities show a mixed pattern. Net cash used for investing activities is predominantly negative except in 2021 and 2022, where positive values indicate net cash inflows from investing activities. Significant purchases and sales of available-for-sale securities contribute to these fluctuations, with large purchases in the early years tapering off by 2023 and 2024. Proceeds from sales and maturities of available-for-sale securities vary considerably, enhancing liquidity in certain years.

Financing activities are characterized by consistent net cash outflows, reflecting significant treasury stock repurchases, increasing from approximately 1.37 billion USD in 2020 to over 3.86 billion USD in 2022, then declining but remaining substantial. Dividends paid steadily increase each year from about 678 million USD in 2019 to nearly 1.02 billion USD in 2024, indicating sustained shareholder returns. Debt-related activities show initial proceeds from long-term debt issuance in 2019 and 2020, with principal repayments rising over time. Borrowings and repayments related to the revolving credit facility occur only in 2020, suggesting temporary financing adjustments during that year. Proceeds from issuance of common stock are relatively small but gradually increase across the period.

Overall cash and cash equivalents exhibit variability. The cash balance decreases from 2019 to 2020, recovers in 2021, drops again in 2022, then increases notably in 2023 and maintains growth into 2024, ending at approximately 5.85 billion USD. This pattern aligns with the net changes in cash flows, influenced by operating, investing, and financing activities as well as exchange rate effects.

In summary, the financial data reflects strong operating performance with fluctuating net incomes, consistent increases in non-cash expenses such as depreciation and equity compensation, and strategic management of working capital. Capital expenditures peaked in the middle of the period before easing, while investing activities show a transition from substantial securities investments to reduced activity. Financing decisions reveal aggressive share repurchases and growing dividend payments alongside variable debt management. The cash position, after periods of decline, concludes with a robust balance, underscoring effective liquidity management amid these dynamics.

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Lam Research Corp. (NASDAQ:LRCX)

Cash Flow Statement