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.

Bristol-Myers Squibb Co., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Net earnings (loss)	7,055)	(8,933)	8,040)	6,345)	7,014)
Depreciation and amortization, net	4,011)	9,600)	9,760)	10,276)	10,686)
Deferred income taxes	(965)	(2,089)	(3,288)	(2,738)	(1,393)
Stock-based compensation	553)	507)	518)	457)	583)
Impairment charges	1,098)	2,963)	255)	179)	1,207)
Divestiture gains and royalties	(1,165)	(1,119)	(884)	(1,063)	(684)
Acquired IPRD	3,721)	13,373)	913)	815)	1,157)
Equity investment (gains) losses, net	(280)	(16)	160)	801)	(745)
Contingent consideration fair value adjustments	351)	—)	—)	—)	—)
Other adjustments	232)	94)	300)	223)	(365)
Receivables	(295)	264)	(995)	(663)	(1,054)
Inventories	(184)	(486)	(751)	(69)	13)
Accounts payable	(2)	184)	198)	109)	245)
Rebates and discounts	(441)	1,484)	904)	427)	863)
Income taxes payable	(4)	(1,260)	(603)	(1,423)	(1,063)
Other	471)	624)	(667)	(610)	(257)
Changes in operating assets and liabilities	(455)	810)	(1,914)	(2,229)	(1,253)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities	7,101)	24,123)	5,820)	6,721)	9,193)
Net cash provided by operating activities	14,156)	15,190)	13,860)	13,066)	16,207)
Sale and maturities of marketable debt securities	1,975)	1,122)	733)	6,411)	4,196)
Purchase of marketable debt securities	(2,000)	(769)	(1,774)	(3,592)	(5,478)
Proceeds from sales of equity investments	77)	265)	215)	218)	2,579)
Capital expenditures	(1,311)	(1,248)	(1,209)	(1,118)	(973)
Divestiture and other proceeds	1,071)	1,099)	909)	1,305)	748)
Acquisition and other payments, net of cash acquired	(3,944)	(21,821)	(1,169)	(4,286)	(1,610)
Net cash used in investing activities	(4,132)	(21,352)	(2,295)	(1,062)	(538)
Proceeds from issuance of short-term debt obligations	—)	2,987)	—)	—)	—)
Repayments of short-term debt obligations	—)	(3,000)	—)	—)	—)
Other short-term financing obligations, net	25)	99)	(120)	194)	(160)
Proceeds from issuance of long-term debt	5,740)	12,883)	4,455)	5,926)	—)
Repayment of long-term debt	(10,940)	(2,873)	(3,879)	(11,431)	(6,022)
Repurchase of common stock	—)	—)	(5,155)	(8,001)	(6,287)
Dividends	(5,045)	(4,863)	(4,744)	(4,634)	(4,396)
Stock option proceeds and other, net	(128)	(106)	27)	984)	641)
Net cash provided by (used in) financing activities	(10,348)	5,127)	(9,416)	(16,962)	(16,224)
Effect of exchange rates on cash, cash equivalents and restricted cash	195)	(137)	45)	(33)	(102)
Increase (decrease) in cash, cash equivalents and restricted cash	(129)	(1,172)	2,194)	(4,991)	(657)
Cash, cash equivalents and restricted cash at beginning of year	10,347)	11,519)	9,325)	14,316)	14,973)
Cash, cash equivalents and restricted cash at end of year	10,218)	10,347)	11,519)	9,325)	14,316)

Based on: 10-K (reporting date: 2025-12-31), 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).

The cash flow statement reveals a complex financial picture over the five-year period. While operating activities generally provide positive cash flow, significant fluctuations occur in investing and financing activities, leading to overall variability in cash position. Net earnings demonstrate volatility, with a substantial net loss reported in 2024.

Operating Activities: Net cash provided by operating activities remains consistently positive, ranging from US$13.066 billion to US$16.207 billion. However, adjustments to reconcile net earnings to net cash flow exhibit considerable variation, particularly in 2024, reaching US$24.123 billion, likely influenced by the large net loss and associated adjustments. Changes in operating assets and liabilities are also volatile, swinging from negative to positive values throughout the period.
Investing Activities: Net cash used in investing activities is consistently negative, indicating ongoing investments. The magnitude of this outflow increases significantly in 2024 to US$21.352 billion, primarily driven by substantial acquisition and other payments. Capital expenditures remain relatively stable, ranging from US$973 million to US$1,311 million annually. Proceeds from sales of equity investments are modest, with a notable decrease in later years.
Financing Activities: Net cash flow from financing activities is predominantly negative, reflecting substantial returns of capital to shareholders and debt management activities. Repurchase of common stock and dividend payments consistently represent significant cash outflows. Long-term debt issuance and repayment fluctuate considerably, with a large issuance in 2022 and 2023, followed by substantial repayments in subsequent years. The year 2024 shows a positive cash flow from financing, likely due to a significant debt issuance.
Key Trends and Observations: A significant net loss is reported in 2024, accompanied by a large increase in adjustments to reconcile net earnings to cash flow, and a substantial outflow in investing activities related to acquisitions. Depreciation and amortization remain consistently high across the period, contributing positively to operating cash flow. Deferred income taxes consistently represent a cash outflow. The company demonstrates a pattern of utilizing debt financing, followed by subsequent repayments. The decrease in depreciation and amortization in 2025 is notable, potentially indicating a slowdown in capital investment or changes in asset base.
Cash Position: The cash position experiences fluctuations, with a decrease in 2022 and 2024, and increases in 2023 and 2025. Despite the volatility, the company maintains a substantial cash balance throughout the period, ending at US$10.218 billion in 2025. The effect of exchange rates on cash is relatively minor, with both positive and negative impacts observed across the years.

Overall, the cash flow statement indicates a company actively managing its capital structure through debt and equity, making significant investments, and returning capital to shareholders. The substantial loss in 2024 and associated cash flow impacts warrant further investigation.

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Bristol-Myers Squibb Co. (NYSE:BMY)

Cash Flow Statement