Cash Flow Statement
Quarterly Data
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.
Based on: 10-Q (reporting date: 2019-07-31), 10-Q (reporting date: 2019-04-30), 10-Q (reporting date: 2019-01-31), 10-K (reporting date: 2018-10-31), 10-Q (reporting date: 2018-07-31), 10-Q (reporting date: 2018-04-30), 10-Q (reporting date: 2018-01-31), 10-K (reporting date: 2017-10-31), 10-Q (reporting date: 2017-07-31), 10-Q (reporting date: 2017-04-30), 10-Q (reporting date: 2017-01-31), 10-K (reporting date: 2016-10-31), 10-Q (reporting date: 2016-07-31), 10-Q (reporting date: 2016-04-30), 10-Q (reporting date: 2016-01-31), 10-K (reporting date: 2015-10-31), 10-Q (reporting date: 2015-07-31), 10-Q (reporting date: 2015-04-30), 10-Q (reporting date: 2015-01-31), 10-K (reporting date: 2014-10-31), 10-Q (reporting date: 2014-07-31), 10-Q (reporting date: 2014-04-30), 10-Q (reporting date: 2014-01-31), 10-K (reporting date: 2013-10-31), 10-Q (reporting date: 2013-07-31), 10-Q (reporting date: 2013-04-30), 10-Q (reporting date: 2013-01-31).
The financial data exhibits several notable trends across the reported periods.
- Net Earnings
- Net earnings demonstrate significant volatility over the periods, with peaks notably in January 2018 (US$ 1,938 million) and a trough observed in October 2016 (US$ 492 million). There is no consistent upward or downward trend, indicating irregular performance fluctuations potentially influenced by external or operational factors.
- Depreciation and Amortization
- This item generally shows a declining trend from early periods until the mid-2010s, with a sharp decrease observed in 2016, stabilizing at lower levels thereafter. This may reflect changes in asset base or capital expenditure policies.
- Stock-Based Compensation Expense
- Stock-based compensation expenses exhibit a somewhat cyclical pattern with quarters of increase following quarters of decline, without an evident sustained trend. The expense peaks around 2015, indicating possible changes in employee compensation structures at that time.
- Restructuring and Other Charges
- Restructuring charges peak sporadically, especially in 2014 and 2015, indicating periods of organizational restructuring or cost management initiatives. These charges diminish substantially after 2016, suggesting stabilization post-restructuring phases.
- Deferred Taxes on Earnings
- There are large swings in deferred taxes, with notable negative spikes in October 2013 (-US$ 952 million) and January 2018 (-US$ 3,713 million). Positive spikes also occur, reflecting high variability likely tied to tax adjustments or legislative impacts.
- Other, Net
- Other net income shows irregular fluctuations with large positive amounts early in the dataset and volatile movements afterwards, including some negative entries. These changes may reflect miscellaneous income or expenses that are non-recurring or one-time in nature.
- Accounts Receivable
- Accounts receivable data is inconsistent with alternating positive and negative values, suggesting variable collection periods or changes in sales volumes. This volatility may impact operating cash flows.
- Inventory
- Inventory levels also fluctuate widely, indicating varying production or sales activities. Significant negative values in multiple quarters suggest periods of inventory reduction or write-downs, while positive values point to stock accumulation.
- Accounts Payable
- Accounts payable trends demonstrate sharp movements, with marked increases and decreases, which may reflect the timing of supplier payments or procurement strategies. Some quarters show substantial payables buildup, while others reflect paydowns.
- Taxes on Earnings
- Taxes on earnings show considerable variability, including extreme negative values (e.g., January 2018 at +US$ 2,463 million and October 2015 at -US$ 1,160 million), suggesting swings in tax liabilities or refund receipts, possibly influenced by earnings volatility and tax planning.
- Restructuring and Other (Cash Flow)
- Consistent negative cash outflows for restructuring and other expenses occur, indicating ongoing costs related to organizational changes, though the magnitude decreases over time.
- Changes in Operating Assets and Liabilities
- There is high volatility in changes in operating assets and liabilities, implying an unstable working capital cycle. Notable positive spikes followed by sharp negative swings indicate episodic adjustments or rebalancing of operating capital.
- Adjustments to Reconcile Net Earnings to Operating Cash Flow
- These adjustments are generally positive, helping bridge net earnings to operating cash flow. Particularly high values early in the dataset reflect significant non-cash expenses or timing differences.
- Net Cash Provided by Operating Activities
- Operating cash flow generally trended upward until late 2014, though with intermittent decreases thereafter. Some quarters show very strong cash generation (e.g., April 2013 and July 2014), whereas others report lower inflows or even negative balances, indicating uneven cash generation from operations.
- Investment in Property, Plant, and Equipment (Capex)
- Capital expenditures remain consistently negative, suggesting sustained investment in fixed assets. There is a general decline in the size of these outflows starting around 2016, which could indicate reduced spending or asset base maturity.
- Proceeds from Sale of Property, Plant, and Equipment
- Receipts from asset sales are typically positive but show a declining trend in later periods, implying lower asset disposals as the years progress.
- Purchases and Maturities of Available-for-Sale Securities
- Purchases and maturities of securities fluctuate with no consistent pattern, suggesting opportunistic investment activities or liquidity management.
- Collateral for Derivative Instruments
- The data shows increasing collateral posted in later periods, paired with collateral returned, indicating active derivative position management and possibly greater engagement in hedging activities toward the end of the dataset.
- Business Acquisitions and Divestitures
- Payments for acquisitions are sporadic but include significant outflows in key periods (e.g., October 2015). Divestiture proceeds appear intermittently, with notable inflows in mid-2016, illustrating occasional portfolio adjustments.
- Net Cash Used in Investing Activities
- Investing cash flows are predominantly negative, reflecting capital expenditures, acquisitions, and securities purchases. Some periods show less negative or slightly positive values, which may relate to proceeds from divestitures or securities maturities.
- Financing Activities
- Financing cash flows are highly volatile, shifting from large outflows in early periods to intermittent inflows and back again. Repurchase of common stock is consistently negative over the years, indicating ongoing shareholder returns. Debt transactions are irregular, with some quarters showing substantial new debt issuance or repayments. Dividends paid remain relatively stable, reflecting consistent shareholder distributions.
- Increase (Decrease) in Cash and Cash Equivalents
- Changes in cash balances are highly variable, with some large positive inflows (e.g., January 2014) and significant decreases in others (e.g., January 2016). The volatility corresponds with the uneven cash flows from operating, investing, and financing activities, suggesting fluctuating liquidity management needs.
Overall, the data reflects a company experiencing considerable operational and financial variability across the periods, with intermittent restructuring, active capital management, and fluctuating earnings and cash flows. The financial activities indicate ongoing efforts to manage capital structure, shareholder returns, and working capital amid evolving business conditions.