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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- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Aggregate Accruals
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International Business Machines Corp., consolidated cash flow statement
US$ in millions
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).
- Net income
- The net income displayed significant fluctuation across the years, with an initial increase from 5590 million in 2020 to 5743 million in 2021, followed by a sharp decline to 1639 million in 2022. Subsequently, it rebounded strongly to 7502 million in 2023 before decreasing again to 6023 million in 2024. This indicates volatility in profitability over the observed period.
- Pension settlement charge
- Charges related to pension settlements were recorded in 2022 and 2024, with substantial figures of 5894 million and 3113 million respectively, implying some pension-related liabilities or settlements impacted earnings during these years.
- Depreciation
- Depreciation expenses steadily declined from 4227 million in 2020 to 2109 million in 2023, with a minor increase to 2168 million in 2024. This trend suggests a reduction in depreciable assets or changes in asset lives.
- Amortization of capitalized software and acquired intangible assets
- This expense was relatively stable, fluctuating moderately between 2287 and 2529 million over the years, indicating consistent investment in capitalized software and intangibles with steady amortization.
- Stock-based compensation
- Stock-based compensation costs showed a gradual increase each year, rising from 937 million in 2020 to 1311 million in 2024, reflecting potentially higher equity incentives or grants to employees.
- Deferred taxes
- Deferred tax amounts were negative in all years, indicating deferred tax liabilities or reductions. Values ranged from -3203 million in 2020 to -1114 million in 2023, before deepening again to -2330 million in 2024, displaying some variation in tax timing differences or tax planning effects.
- Net gain on divestitures, asset sales and other
- Negative gains were recorded consistently, with increasing losses reaching -652 million in 2024, suggesting that divestitures or asset sales were not favorable or that related expenses outweighed gains.
- Receivables, including financing receivables
- The values fluctuated significantly, with positive figures early on and negative values in 2022 and 2024, possibly reflecting changes in credit policies, collections or financing portfolio adjustments.
- Retirement related
- Retirement-related figures were generally positive but declined sharply in 2023 to -462 million before recovering slightly in 2024, indicating volatility in retirement benefit obligations or settlements.
- Inventory
- Inventory levels fluctuated between negative and positive values, peaking at 390 million in 2023, suggesting variable inventory management or demand conditions.
- Other assets/other liabilities
- The net other assets/liabilities showed variability, moving from positive 2087 million in 2020 to negative figures in 2021 and 2022, then rising again in 2023 and 2024, reflecting fluctuating non-core asset and liability balances.
- Accounts payable
- Accounts payable fluctuated with modest amounts, decreasing from 138 million in 2020 to -13 million in 2024, showing slight variability in payables management.
- Changes in operating assets and liabilities, net of acquisitions/divestitures
- This figure varied widely, with a high of 8249 million in 2020 and much lower or negative values in subsequent years, indicating changes in working capital dynamics.
- Adjustments to reconcile net income to cash provided by operating activities
- Adjustments fluctuated but remained substantial, indicating continued non-cash expenses or other reconciliations affecting operating cash flows.
- Net cash provided by operating activities
- Operating cash flow showed a general decline from 18197 million in 2020 to 10435 million in 2022, then improved to around 13931 million in 2023 and slightly decreased to 13445 million in 2024, illustrating resilience in cash generation despite net income volatility.
- Payments for property, plant and equipment
- Capital expenditures consistently decreased from 2618 million in 2020 to 1048 million in 2024, implying reduced investment in physical assets.
- Proceeds from disposition of property, plant and equipment
- Proceeds from asset sales largely increased, reaching 557 million in 2024, suggesting asset monetization strategies.
- Investment in software
- Software investments remained relatively stable around 565 to 706 million annually, signifying steady expenditure in technology development.
- Purchases of marketable securities and other investments
- These purchases varied significantly, with a peak of 11142 million in 2023 and a decline to 7762 million in 2024, indicating active portfolio management or liquidity repositioning.
- Proceeds from disposition of marketable securities and other investments
- Proceeds peaked at 10647 million in 2023 following lower amounts in earlier years, consistent with the high purchase activity noted and suggesting active investment turnover.
- Acquisition of businesses, net of cash acquired
- Acquisitions showed a generally downward trend after peaking at 5082 million in 2023, reflecting ongoing but diminishing investment in business expansion.
- Divestiture of businesses, net of cash transferred
- Divestitures fluctuated, with significant proceeds in some years such as 1272 million in 2022 and 698 million in 2024, highlighting ongoing portfolio optimization.
- Net cash used in investing activities
- Investing cash outflows were notably high in 2023 at 7070 million but decreased in 2024, indicating reduced investment activity overall.
- Proceeds from new debt and payments to settle debt
- Debt management was active, with proceeds from new debt fluctuating widely and payments steadily reducing from 13365 million in 2020 to 6615 million in 2024. This portrays efforts toward debt refinancing and reduction.
- Short-term borrowings (repayments) less than 90 days, net
- Short-term borrowings showed minimal net movements, generally close to zero, indicating stable short-term financing levels.
- Common stock repurchases for tax withholdings
- Repurchases for tax purposes increased gradually from 302 million to 651 million, reflecting higher stock-based compensation or share settlement needs.
- Proceeds from issuance of shares
- Share issuance began in 2022 and increased through 2024, suggesting capital raising or equity financing initiatives following prior years with no issuance.
- Financing, other
- Other financing activities were minor with small positive or negative amounts, indicating limited impact on overall financing.
- Cash dividends paid
- Dividend payments consistently increased from 5797 million in 2020 to 6147 million in 2024, demonstrating a steady return of value to shareholders.
- Net cash used in financing activities
- Net financing cash outflows varied significantly, with a large outflow in 2021 (13354 million) and smaller outflows in subsequent years, indicating dynamic financing activities including debt repayments and share repurchases.
- Effect of exchange rate changes on cash, cash equivalents and restricted cash
- Foreign exchange effects mostly imposed negative impacts on cash balances, except for a small positive effect in 2023, highlighting currency fluctuations' influence on financial positions.
- Net change in cash, cash equivalents and restricted cash
- Cash levels were volatile, with a large increase in 2020, followed by a drop in 2021, then sustained growth through 2023 and modest growth in 2024, reflecting combined effects of operations, investing, financing, and currency impacts.
- Cash, cash equivalents and restricted cash balances
- Cash reserves grew from 8314 million at the beginning of 2020 to 14160 million at the end of 2024, indicating strengthened liquidity positions despite fluctuations in net income and cash flows.