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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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Debt to Equity since 2005
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Abbott Laboratories, consolidated cash flow statement
US$ in millions
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 Earnings
- Net earnings demonstrated a strong upward trend overall, increasing from $4,495 million in 2020 to $13,402 million in 2024. There was a notable peak in 2021 at $7,071 million, followed by a slight decline in 2022 and 2023 before a significant surge in 2024.
- Depreciation and Amortization
- Depreciation increased moderately from $1,195 million in 2020 to $1,340 million in 2024, showing steady capital asset usage. In contrast, amortization of intangible assets consistently declined from $2,132 million in 2020 to $1,878 million in 2024, indicating a reduction in intangible asset amortization over the period.
- Share-based Compensation
- Share-based compensation showed a general upward trend, rising from $546 million in 2020 to $673 million in 2024, suggesting increased employee incentives or stock-based pay programs.
- Investing and Financing Losses, Net
- This item fluctuated significantly, starting at $425 million losses in 2020, dropping to $55 million in 2021, then increasing again to $482 million in 2024, indicative of volatility in investment or financing transactions.
- Working Capital Components
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- Trade Receivables
- Trade receivables improved (less negative) from -$924 million in 2020 to -$68 million in 2022 but reverted to more negative levels in subsequent years, reaching -$691 million in 2024.
- Inventories
- Inventories showed significant volatility, with a large negative adjustment of -$1,413 million in 2022 but less negative in other years, ending at -$58 million in 2024.
- Prepaid Expenses and Other Assets
- Prepaid expenses and other assets decreased in absolute terms from -$627 million in 2020 to -$75 million in 2022, then increased sharply to -$796 million in 2024, indicating inconsistent changes in prepaid costs and other asset accounts.
- Trade Accounts Payable and Other Liabilities
- These liabilities decreased considerably from $1,766 million in 2020 to $420 million in 2022 and turned negative in 2023 (-$760 million), before recovering to $356 million in 2024, reflecting fluctuating payables and liabilities management.
- Income Taxes
- Income taxes exhibited large swings, where payments increased from -$614 million to -$908 million by 2021, then dropped sharply to -$383 million in 2022, followed by a dramatic rise to -$8,028 million in 2024, pointing to changing tax obligations or strategy.
- Increase (Decrease) in Operating Capital
- Operating capital changes showed growing negative values, from -$892 million in 2020 down to -$9,217 million in 2024, suggesting increased investment in working capital or decreased current liabilities relative to current assets.
- Adjustments to Reconcile Earnings to Net Cash from Operating Activities
- This figure decreased substantially from $3,406 million in 2020 to -$4,844 million in 2024, indicating major adjustments and non-cash items impacting the conversion from earnings to cash flows.
- Net Cash from Operating Activities
- Operating cash flow increased from $7,901 million in 2020 to a peak of $10,533 million in 2021, then experienced declines in 2022 and 2023 before rising moderately in 2024 to $8,558 million. This reflects relatively strong but variable cash generation from operations.
- Investing Activities
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- Acquisitions of Property and Equipment
- Capital expenditures remained fairly stable, averaging around -$2,000 million annually, signaling consistent investment in property and equipment.
- Acquisitions of Businesses and Technologies
- Investments here decreased notably after 2021, with significant spending in 2023 (-$877 million) but no reported acquisitions in 2022 or 2024.
- Proceeds from Business Dispositions
- Proceeds declined significantly, dropping from $58 million in 2020 to only $1 million in 2024, indicating reduced asset sales.
- Purchases and Sales of Investment Securities
- Purchases generally exceeded sales, with purchases fluctuating between -$83 million and -$185 million and sales decreasing from $152 million in 2022 to $28 million in 2024.
- Net Cash Used in Investing Activities
- Net cash used in investing grew notably in 2023 to -$3,133 million but eased to -$2,338 million in 2024, showing increased but manageable investment outflows.
- Financing Activities
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- Debt Issuance and Repayment
- Long-term debt repayments surged in 2023 to -$2,498 million from relatively lower levels in prior years, while debt issuance remained low except for a moderate increase to $223 million in 2024. Short-term debt movements were minor and fluctuated between small positive and negative values.
- Purchases of Common Shares
- Share repurchases declined sharply after peaking at -$3,795 million in 2022, falling to around -$1,295 million in 2024, indicating reduced but still significant share buyback activity.
- Proceeds from Stock Options Exercised
- Proceeds remained relatively steady around $160 million to $260 million annually, supporting liquidity through employee exercising of options.
- Dividends Paid
- Dividends increased steadily from -$2,560 million in 2020 to -$3,836 million in 2024, reflecting a consistent rise in shareholder distributions.
- Net Cash Used in Financing Activities
- Outflows expanded sharply in 2021 and 2022, reaching -$7,636 million in 2022, but decreased somewhat to -$5,404 million in 2024, consistent with the trends in buybacks, debt repayments, and dividend payments.
- Cash and Cash Equivalents
- Cash balances nearly doubled from $3,860 million at the start of 2020 to $7,616 million at the end of 2024, despite declines in 2023. Net increases fluctuated, with a notable decline in 2023 (-$2,986 million) followed by a recovery in 2024 (+$720 million).
- Effect of Exchange Rate Changes
- Currency effects were relatively minor yet negative in most years after a positive contribution in 2020, indicating some foreign exchange headwinds on cash balances.