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.

Kimberly-Clark Corp., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Net income	2,396	2,197	1,445	2,319	2,219
Depreciation and amortization	796	917	882	724	705
Asset impairments	17	—	74	—	2
Stock-based compensation	147	96	41	76	77
Deferred income taxes	45	29	2	(69)	(15)
Net (gains) losses on asset dispositions	68	(193)	52	21	6
Equity companies’ earnings (in excess of) less than dividends paid	(30)	(6)	18	26	(4)
Accounts receivable	95	(116)	33	(44)	(23)
Inventories	(96)	24	(127)	(33)	230
Trade accounts payable	239	(153)	392	174	(61)
Accrued expenses	132	11	115	(102)	26
Accrued income taxes	42	(6)	64	(176)	121
Derivatives	(9)	1	30	(47)	43
Currency and other	(40)	(49)	(118)	80	(2)
Operating working capital	363	(288)	389	(148)	334
Postretirement benefits	(28)	13	(25)	2	(50)
Other	(45)	(29)	92	(22)	(42)
Cash provided by operations	3,729	2,736	2,970	2,929	3,232
Capital spending	(1,217)	(1,209)	(877)	(785)	(771)
Acquisition, net of cash acquired	(1,083)	(4)	—	—	—
Proceeds from dispositions of property	31	242	51	3	23
Investments in time deposits	(753)	(568)	(353)	(214)	(221)
Maturities of time deposits	690	542	272	183	188
Other	27	(45)	5	(38)	49
Cash used for investing	(2,305)	(1,042)	(902)	(851)	(732)
Cash dividends paid	(1,451)	(1,408)	(1,386)	(1,359)	(1,311)
Change in short-term debt	(561)	303	(34)	360	(908)
Debt proceeds	1,845	706	507	937	1,293
Debt repayments	(854)	(707)	(407)	(1,481)	(598)
Proceeds from exercise of stock options	217	228	62	121	107
Acquisitions of common stock for the treasury	(700)	(800)	(800)	(911)	(739)
Other	(63)	(114)	(57)	(88)	(29)
Cash used for financing	(1,567)	(1,792)	(2,115)	(2,421)	(2,185)
Effect of exchange rate changes on cash and cash equivalents	4	1	(30)	36	(11)
Change in cash and cash equivalents	(139)	(97)	(77)	(307)	304
Cash and cash equivalents, beginning of year	442	539	616	923	619
Cash and cash equivalents, end of year	303	442	539	616	923

Based on: 10-K (filing date: 2021-02-11), 10-K (filing date: 2020-02-13), 10-K (filing date: 2019-02-07), 10-K (filing date: 2018-02-08), 10-K (filing date: 2017-02-08).

Cash flow statement item	Description	The company
Cash provided by operations	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.	Kimberly-Clark Corp.’s cash provided by operations decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Cash used for investing	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.	Kimberly-Clark Corp.’s cash used for investing decreased from 2018 to 2019 and from 2019 to 2020.
Cash used for financing	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.	Kimberly-Clark Corp.’s cash used for financing increased from 2018 to 2019 and from 2019 to 2020.

Kimberly-Clark Corp. (NYSE:KMB)

Cash Flow Statement