Name: AmerisourceBergen Corp. (NYSE:ABC) | Cash Flow Statement
Creator: Stock Analysis on Net

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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AmerisourceBergen Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Net income (loss)	1,666,540)	1,544,608)	(3,399,558)	854,135)	1,615,892)	364,484)
Depreciation, including amounts charged to cost of goods sold	390,643)	326,713)	290,744)	321,102)	318,483)	262,420)
Amortization, including amounts charged to interest expense	319,192)	188,073)	117,269)	176,410)	191,626)	169,911)
Provision for credit losses	26,053)	12,101)	11,912)	25,196)	16,660)	8,934)
Provision (benefit) for deferred income taxes	196,184)	334,866)	(1,544,971)	28,537)	(795,524)	319,069)
Share-based compensation expense	93,400)	99,594)	74,411)	58,874)	62,316)	62,206)
LIFO expense (credit)	67,171)	(203,028)	7,422)	(22,544)	67,324)	(157,782)
Impairment of assets, including goodwill	80,882)	31,697)	361,652)	570,000)	59,684)	—)
Gain on sale of businesses	(56,228)	—)	—)	—)	—)	(3,677)
Turkey highly inflationary impact	51,966)	—)	—)	—)	—)	—)
Gain on sale of an equity investment	—)	—)	—)	(13,692)	—)	—)
Gain on remeasurement of equity investment	(4,834)	(64,721)	—)	—)	—)	—)
Impairment of non-customer note receivable	—)	—)	—)	—)	30,000)	—)
Loss on consolidation of equity investments	—)	—)	—)	—)	42,328)	—)
Loss on early retirement of debt	—)	—)	22,175)	—)	23,766)	—)
Other, net	11,781)	29,361)	(3,044)	(23,193)	(19,078)	11,421)
Accounts receivable	(1,659,525)	(930,078)	(1,628,991)	(1,241,890)	(657,770)	(1,277,896)
Inventories	(665,370)	(1,116,344)	(1,621,143)	(167,990)	(4,923)	(431,454)
Income tax receivable	49,307)	266,552)	(482,569)	(2,834)	4,566)	—)
Prepaid expenses and other assets	102,708)	141,057)	28,050)	(3,899)	(61,777)	33,646)
Accounts payable	3,320,725)	2,049,167)	3,300,832)	1,561,048)	859,036)	1,473,389)
Accrued expenses	(457,233)	372,078)	524,021)	239,688)	(537,905)	661,174)
Income taxes payable and other liabilities	(330,079)	(178,120)	(50,115)	(14,925)	196,684)	8,293)
Long-term accrued litigation liability	(500,195)	(236,990)	6,198,943)	—)	—)	—)
Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures	(139,662)	367,322)	6,269,028)	369,198)	(202,089)	467,152)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	1,036,548)	1,121,978)	5,606,598)	1,489,888)	(204,504)	1,139,654)
Net cash provided by operating activities	2,703,088)	2,666,586)	2,207,040)	2,344,023)	1,411,388)	1,504,138)
Capital expenditures	(496,318)	(438,217)	(369,677)	(310,222)	(336,411)	(466,397)
Cost of acquired companies, net of cash acquired	(133,814)	(5,563,040)	—)	(63,951)	(785,299)	(61,648)
Cost of equity investments	(18,491)	(162,620)	(56,080)	—)	—)	(11,347)
Proceeds from sale of property and equipment	6,302)	14,439)	36,364)	1,295)	8,100)	—)
Proceeds from sale of businesses	272,586)	—)	—)	—)	—)	12,094)
Proceeds from sales of investment securities available-for-sale	—)	—)	—)	—)	—)	74,778)
Purchases of investment securities available-for-sale	—)	—)	—)	—)	—)	(48,635)
Other, net	1,298)	7,861)	9,522)	(2,954)	2,496)	3,114)
Net cash used in investing activities	(368,437)	(6,141,577)	(379,871)	(375,832)	(1,111,114)	(498,041)
Senior notes and other loan borrowings	155,189)	3,166,980)	599,480)	506,948)	1,314,430)	—)
Senior notes and other loan repayments	(1,238,954)	(835,313)	(598,452)	(510,863)	(681,001)	(750,000)
Borrowings under revolving and securitization credit facilities	4,832,605)	4,968,815)	116,946)	640,126)	25,129,704)	9,336,400)
Repayments under revolving and securitization credit facilities	(4,671,943)	(5,083,930)	(149,980)	(769,284)	(25,127,438)	(9,335,953)
Payment of premium on early retirement of debt	—)	—)	(21,448)	—)	(22,348)	—)
Purchases of common stock	(483,704)	(82,150)	(420,449)	(674,031)	(639,235)	(329,929)
Exercises of stock options	93,912)	198,750)	159,533)	76,234)	138,456)	102,923)
Cash dividends on common stock	(391,687)	(366,648)	(343,578)	(338,974)	(333,041)	(320,270)
Profarma retail equity offering	—)	—)	66,355)	—)	—)	—)
Tax withholdings related to restricted share vesting	(38,076)	(23,547)	(9,787)	(5,987)	(8,246)	(9,411)
Other, net	(10,122)	9,892)	(2,237)	(10,682)	(14,154)	(6,574)
Net cash provided by (used in) financing activities	(1,752,780)	1,952,849)	(603,617)	(1,086,513)	(242,873)	(1,312,814)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(57,850)	(3,725)	—)	—)	—)	—)
Increase (decrease) in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale	524,021)	(1,525,867)	1,223,552)	881,678)	57,401)	(306,717)
Increase in cash classified within assets held for sale	(610)	(1,751)	—)	—)	—)	—)
Increase (decrease) in cash and cash equivalents	523,411)	(1,527,618)	1,223,552)	881,678)	57,401)	(306,717)
Cash, cash equivalents, and restricted cash at beginning of year	3,070,128)	4,597,746)	3,374,194)	2,492,516)	2,435,115)	2,741,832)
Cash, cash equivalents, and restricted cash at end of year	3,593,539)	3,070,128)	4,597,746)	3,374,194)	2,492,516)	2,435,115)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

Operating cash flow demonstrates a consistent upward trajectory over the analyzed period, increasing from $1.5 billion in 2017 to $2.7 billion in 2022. This growth persisted despite significant volatility in net income, which peaked in 2018 and 2022 but experienced a substantial deficit of $3.4 billion in 2020. The divergence between net income and operating cash flow in 2020 is primarily explained by a $6.2 billion non-cash adjustment related to long-term accrued litigation liabilities, which effectively insulated operational liquidity from the reported accounting loss.

Investing activities are characterized by steady capital expenditures and strategic inorganic growth. Annual capital expenditures remained relatively stable, ranging between $310 million and $496 million. A major inflection point occurred in 2021, with a significant cash outflow of $5.56 billion directed toward the acquisition of companies, representing the largest single investment during the period. This aggressive expansion was balanced in subsequent years by a return to more moderate investing outflows.

Financing activities reflect a balanced approach to debt management and shareholder returns. Cash dividends on common stock exhibit a steady annual increase, rising from $320 million in 2017 to $391 million in 2022. The company utilized revolving and securitization credit facilities extensively for short-term liquidity, as evidenced by the high volume of borrowings and repayments. To fund the 2021 acquisitions, there was a notable shift toward financing inflows, including $3.17 billion from senior notes and other loan borrowings.

Earnings Quality and Cash Conversion: The ability to generate increasing net cash from operations while net income fluctuated suggests high earnings quality. The consistent positive cash flow from operations provides a reliable foundation for funding both capital expenditures and dividend payments without relying solely on external financing.
Working Capital Management: Significant fluctuations are observed in accounts receivable and accounts payable. A notable spike in accounts payable occurred in 2020 and 2022, both exceeding $3.3 billion, which served as a source of cash to offset operational needs and inventory build-ups.
Liquidity Position: The overall liquidity position strengthened over the six-year period, with cash, cash equivalents, and restricted cash at the end of the year increasing from $2.4 billion in 2017 to $3.6 billion in 2022. This growth indicates a conservative cash management strategy that maintains a buffer against market volatility and litigation risks.
Capital Allocation Strategy: The company maintains a dual strategy of returning value to shareholders through dividends and stock repurchases while simultaneously pursuing growth through acquisitions. Share buybacks were most aggressive between 2018 and 2019, with a temporary reduction in 2021 to prioritize acquisition spending.

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