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, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net earnings (loss)	(8,933)	8,040)	6,345)	7,014)	(8,995)
Depreciation and amortization, net	9,600)	9,760)	10,276)	10,686)	10,380)
Deferred income taxes	(2,089)	(3,288)	(2,738)	(1,393)	983)
Stock-based compensation	507)	518)	457)	583)	779)
Impairment charges	2,963)	255)	179)	1,207)	1,203)
Divestiture gains and royalties	(1,119)	(884)	(1,063)	(684)	(699)
Acquired IPRD	13,373)	913)	815)	1,157)	12,537)
Equity investment (gains) losses, net	(16)	160)	801)	(745)	(1,228)
Other adjustments	94)	300)	223)	(365)	(1,891)
Receivables	264)	(995)	(663)	(1,054)	(646)
Inventories	(486)	(751)	(69)	13)	2,672)
Accounts payable	184)	198)	109)	245)	188)
Rebates and discounts	1,484)	904)	427)	863)	1,189)
Income taxes payable	(1,260)	(603)	(1,423)	(1,063)	(2,305)
Other	624)	(667)	(610)	(257)	(115)
Changes in operating assets and liabilities	810)	(1,914)	(2,229)	(1,253)	983)
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities	24,123)	5,820)	6,721)	9,193)	23,047)
Net cash provided by operating activities	15,190)	13,860)	13,066)	16,207)	14,052)
Sale and maturities of marketable debt securities	1,122)	733)	6,411)	4,196)	6,280)
Purchase of marketable debt securities	(769)	(1,774)	(3,592)	(5,478)	(4,172)
Proceeds from sales of equity investments	265)	215)	218)	2,579)	129)
Capital expenditures	(1,248)	(1,209)	(1,118)	(973)	(753)
Divestiture and other proceeds	1,099)	909)	1,305)	748)	741)
Acquisition and other payments, net of cash acquired	(21,821)	(1,169)	(4,286)	(1,610)	(13,084)
Net cash used in investing activities	(21,352)	(2,295)	(1,062)	(538)	(10,859)
Proceeds from issuance of short-term debt obligations	2,987)	—)	—)	—)	—)
Repayments of short-term debt obligations	(3,000)	—)	—)	—)	—)
Other short-term financing obligations, net	99)	(120)	194)	(160)	(267)
Proceeds from issuance of long-term debt	12,883)	4,455)	5,926)	—)	6,945)
Repayment of long-term debt	(2,873)	(3,879)	(11,431)	(6,022)	(2,750)
Repurchase of common stock	—)	(5,155)	(8,001)	(6,287)	(1,546)
Dividends	(4,863)	(4,744)	(4,634)	(4,396)	(4,075)
Stock option proceeds and other, net	(106)	27)	984)	641)	542)
Net cash provided by (used in) financing activities	5,127)	(9,416)	(16,962)	(16,224)	(1,151)
Effect of exchange rates on cash, cash equivalents and restricted cash	(137)	45)	(33)	(102)	111)
Increase (decrease) in cash, cash equivalents and restricted cash	(1,172)	2,194)	(4,991)	(657)	2,153)
Cash, cash equivalents and restricted cash at beginning of year	11,519)	9,325)	14,316)	14,973)	12,820)
Cash, cash equivalents and restricted cash at end of year	10,347)	11,519)	9,325)	14,316)	14,973)

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).

The financial data over the five-year period exhibits notable volatility, particularly in net earnings and cash flows. Net earnings show significant fluctuations, with a loss of US$8,995 million in 2020, followed by positive earnings from 2021 to 2023, peaking at US$8,040 million in 2023, and then a sharp return to a loss of US$8,933 million in 2024. This inconsistency indicates periods of financial instability or significant one-time events impacting profitability.

Depreciation and Amortization: There is a gradual decline in depreciation and amortization expenses, from US$10,380 million in 2020 to US$9,600 million in 2024. This steady decrease may reflect changes in capital asset base or amortization schedules.
Deferred Income Taxes: Deferred income taxes transitioned from a positive balance of US$983 million in 2020 to negative figures in subsequent years, reaching a nadir in 2023 (-US$3,288 million) before improving slightly in 2024 (-US$2,089 million). This suggests tax timing differences or changes in tax strategy over the period.
Stock-Based Compensation: Stock-based compensation has generally declined from US$779 million in 2020 to US$507 million in 2024, indicating potential shifts in employee remuneration policies or reduced issuance of stock-based awards.
Impairment Charges: Impairment charges remained relatively stable between 2020 and 2023, with values around US$179 million to US$1,207 million, but surged sharply to US$2,963 million in 2024. This spike could indicate asset impairments or write-downs related to changes in asset valuation or unforeseen adverse conditions.
Divestiture Gains and Royalties: Divestiture gains and royalties show consistent negative values, increasing in absolute terms from -US$699 million in 2020 to -US$1,119 million in 2024, signaling ongoing costs or loss of revenue streams from divestiture activities.
Acquired IPRD (In-Process Research and Development): Values declined sharply after 2020 from US$12,537 million to a low near US$815-913 million in 2022-2023, before a pronounced increase to US$13,373 million in 2024. This pattern may reflect acquisition activity timing, with substantial investment in new research and development assets in the most recent year.
Equity Investment Gains/Losses: Gains/losses on equity investments showed improvement between 2020 and 2021 but posted a net loss in 2022 and fluctuated around zero thereafter, implying variable returns on equity holdings and possible market influence on investment valuations.
Changes in Operating Assets and Liabilities: This item presented volatility, shifting from a positive US$983 million in 2020 to negative values through 2021-2023 (-US$1,914 million to -US$2,229 million), before improving to US$810 million in 2024. These fluctuations point to varying working capital management and business cycle impacts.
Net Cash Provided by Operating Activities: Operating cash flow increased from US$14,052 million in 2020 to a peak of US$16,207 million in 2021, before modest declines to US$13,066 million in 2022 and gradual recovery to US$15,190 million in 2024. Despite earnings volatility, operating cash generation appears relatively resilient.
Investing Activities: Investing cash flows show net cash outflows each year, with the largest outflow of -US$21,352 million in 2024, driven mainly by acquisition payments escalating sharply to -US$21,821 million that year. Capital expenditures increased steadily from -US$753 million to -US$1,248 million, reflecting ongoing investment in fixed assets.
Financing Activities: Financing activities depict considerable variability. Negative cash flows dominated from 2020 through 2023, reaching -US$16,224 million in 2021 and -US$16,962 million in 2022, primarily due to share repurchases and debt repayments. However, 2024 saw a positive inflow of US$5,127 million, indicating new financing sources or capital restructuring. Notably, long-term debt issuance rose to US$12,883 million in 2024, counterbalancing repayments and short-term debt fluctuations.
Liquidity Position: Cash and equivalents increased from US$12,820 million at the start of 2020 to US$14,973 million at year-end 2020 but declined thereafter, reaching US$9,325 million at the end of 2022. The balance partially recovered to US$11,519 million in 2023 before slightly decreasing to US$10,347 million in 2024. The changes reflect the interplay of operational cash flow, investing outflows, and fluctuating financing activities.

In summary, the data reveals cycles of profitability with substantial impairments and acquisition activities influencing earnings and cash flows. Operating cash flow exhibits relative consistency despite net earnings volatility, while investing and financing activities denote significant strategic shifts including heavy acquisition spending and capital restructuring in recent years. Liquidity remains adequate but shows sensitivity to these financial maneuvers.

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Bristol-Myers Squibb Co. (NYSE:BMY)

Cash Flow Statement