Stock Analysis on Net
Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

Cash Flow Statement

Beginner level

The cash flow statement provides information about a company’s 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’s 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.

International Business Machines Corp., consolidated cash flow statement

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income 5,590  9,431  8,728  5,753  11,872 
Depreciation 4,227  4,209  3,127  3,021  2,837 
Amortization of intangibles 2,468  1,850  1,353  1,520  1,544 
Stock-based compensation 937  679  510  534  544 
Deferred taxes (3,203) (1,527) 853  (931) (1,132)
Net (gain) loss on asset sales and other (71) (1,097) 123  14  62 
Receivables, including financing receivables 5,297  502  1,006  1,297  712 
Retirement related 936  301  1,368  1,014  54 
Inventory (209) 67  (127) 18  (14)
Other assets/other liabilities 2,087  858  (1,820) 4,437  282 
Accounts payable 138  (503) 126  47  197 
Changes in operating assets and liabilities, net of acquisitions/divestitures 8,249  1,225  553  6,813  1,231 
Adjustments to reconcile net income to cash provided by operating activities 12,607  5,339  6,519  10,971  5,086 
Net cash provided by operating activities 18,197  14,770  15,247  16,724  16,958 
Payments for property, plant and equipment (2,618) (2,286) (3,395) (3,229) (3,567)
Proceeds from disposition of property, plant and equipment 188  537  248  460  424 
Investment in software (612) (621) (569) (544) (583)
Purchases of marketable securities and other investments (6,246) (3,693) (7,041) (4,964) (5,917)
Proceeds from disposition of marketable securities and other investments 5,618  3,961  6,487  3,910  5,692 
Non-operating finance receivables, net 475  6,720  (503) (2,028) (892)
Acquisition of businesses, net of cash acquired (336) (32,630) (140) (496) (5,679)
Divestiture of businesses, net of cash transferred 503  1,076  —  (205) (454)
Net cash used in investing activities (3,028) (26,936) (4,913) (7,096) (10,976)
Proceeds from new debt 10,504  31,825  6,891  9,643  9,132 
Payments to settle debt (13,365) (12,944) (8,533) (6,816) (6,395)
Short-term borrowings (repayments) less than 90 days, net (853) (2,597) 1,341  620  26 
Common stock repurchases —  (1,361) (4,443) (4,340) (3,502)
Common stock repurchases for tax withholdings (302) (272) (171) (193) — 
Financing, other 92  98  112  174  204 
Cash dividends paid (5,797) (5,707) (5,666) (5,506) (5,256)
Net cash provided by (used in) financing activities (9,721) 9,042  (10,469) (6,418) (5,791)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (87) (166) (495) 936  (51)
Net change in cash, cash equivalents and restricted cash 5,361  (3,290) (630) 4,146  140 
Cash, cash equivalents and restricted cash at January 1 8,314  11,604  12,234  7,826  7,686 
Cash, cash equivalents and restricted cash at December 31 13,675  8,314  11,604  11,972  7,826 

Based on: 10-K (filing date: 2021-02-23), 10-K (filing date: 2020-02-25), 10-K (filing date: 2019-02-26), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28).

Cash flow statement item Description The company
Net cash provided by operating activities Amount of cash inflow (outflow) from operating activities, excluding discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities. International Business Machines Corp.’s net cash provided by operating activities decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Net cash used in investing activities Amount of cash inflow (outflow) of investing activities, excluding discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets. International Business Machines Corp.’s net cash used in investing activities decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Net cash provided by (used in) financing activities Amount of cash inflow (outflow) of financing activities, excluding discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit. International Business Machines Corp.’s net cash provided by (used in) financing activities increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.