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.
Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).
The financial data reveals several notable trends over the five-year period ending December 31, 2018.
- Net Income (Loss)
- Net income demonstrated significant volatility, starting strongly at 3,501 million USD in 2014, then experiencing considerable losses in 2015 and 2016 (-667 million USD and -5,769 million USD respectively). This was followed by a loss in 2017 (-468 million USD) before recovering to a positive income of 1,657 million USD in 2018. This pattern indicates substantial earnings instability during the period, with a marked recovery only in the final year.
- Depreciation, Depletion, and Amortization
- These non-cash expenses steadily decreased from 2,126 million USD in 2014 to 1,503 million USD by 2016 but showed a slight uptrend thereafter, reaching 1,606 million USD in 2018. The downward trend in the earlier years might reflect asset base changes or shifts in capital investment.
- Deferred Income Tax Provision (Benefit)
- Deferred tax benefits fluctuated significantly, with a benefit of -454 million USD in 2014, diminishing to -1501 million USD in 2016, then reversing to a provision of 734 million USD in 2017, and back to a benefit of -267 million USD in 2018. This irregularity may reflect changes in tax positions or accounting adjustments related to prior years’ losses or tax law changes.
- Impairments and Other Charges
- There was a marked increase in impairments and other charges peaking at 3,357 million USD in 2016, significantly higher than in 2014 (129 million USD). These high charges likely contributed heavily to the net losses in 2015 and 2016. Subsequently, impairments decreased sharply to 265 million USD by 2018.
- Working Capital Components
- Inventories, accounts payable, and receivables exhibited inconsistent movements. Inventories shifted from an initial deficit (-271 million USD in 2014) to surpluses in 2015 and 2016, before negative changes in 2017 and 2018. Accounts payable showed negative values in 2015 and 2016 before improving. Receivables increased in 2015 and 2016 but reversed in 2017 and 2018. These fluctuations point to changing operational dynamics or supply chain adjustments influencing working capital.
- Cash Flows from Operating Activities
- Operating cash flows were robust in 2014 and 2015 (4,062 million USD and 2,906 million USD respectively), turned negative in 2016 (-1,703 million USD), then recovered in 2017 and 2018 (2,468 million USD and 3,157 million USD). This aligns with the pattern of net income, showing cash generation challenges in 2016 and recovery thereafter.
- Capital Expenditures and Investing Activities
- Capital expenditures declined sharply from -3,283 million USD in 2014 to -798 million USD in 2016, then rose again to -2,026 million USD in 2018. Investing cash flows were negative throughout, mostly reflecting capital spending and acquisitions, though the magnitude lessened in 2016 with some recovery in investment securities activities noted in 2017 and 2018.
- Financing Activities
- Financing cash flows fluctuated widely, with a significant inflow in 2015 (7,081 million USD) largely due to proceeds from long-term debt issuance (7,440 million USD), followed by large outflows in other years. Dividends remained relatively stable around -600 million USD annually. Notably, large repayments on long-term borrowings occurred in 2016 and 2017, improving in 2018.
- Cash and Equivalents
- The cash and equivalents balance showed sharp increases and decreases. After a modest decline in 2014 (-65 million USD), there was a large increase in 2015 (+7,786 million USD), attributable to financing activities. The company then experienced steep reductions in cash during 2016 (-6,068 million USD) and in subsequent years, ending 2018 with a balance below that of 2014.
Overall, the data reflects a period of considerable financial instability, driven by significant impairments and operational challenges in 2015 and 2016, followed by gradual recovery. Capital investment decreased sharply during the lower earnings period but increased again as financial conditions improved. The financing structure shifted notably in 2015 with large debt issuances, aligning with cash flow fluctuations. The company's working capital management and tax positions also showed variability, adding to the financial complexity during this period.