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.

Visa Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Client incentives	10,295)	8,367)	6,664)	6,173)	5,491)	4,565)
Share-based compensation	602)	542)	416)	407)	327)	235)
Depreciation and amortization of property, equipment, technology and intangible assets	861)	804)	767)	656)	613)	556)
Deferred income taxes	(336)	873)	307)	214)	(1,277)	1,700)
VE territory covered losses incurred	(43)	(147)	(37)	(172)	(11)	(209)
(Gains) losses on equity investments, net	264)	(712)	(101)	(131)	—)	—)
Charitable contribution of Visa Inc. shares	—)	—)	—)	—)	—)	192)
Other	(94)	(109)	(44)	(140)	(74)	50)
Settlement receivable	(397)	(468)	1,858)	(1,533)	(223)	94)
Accounts receivable	(97)	(343)	(43)	(333)	(70)	(54)
Client incentives	(9,351)	(7,510)	(8,081)	(6,430)	(4,682)	(4,628)
Other assets	(666)	(147)	(402)	(310)	(160)	(252)
Accounts payable	67)	88)	21)	(24)	3)	(30)
Settlement payable	1,256)	679)	(2,384)	1,931)	262)	(176)
Accrued and other liabilities	1,055)	929)	923)	627)	1,761)	465)
Accrued litigation	476)	70)	(290)	(231)	452)	1)
Change in operating assets and liabilities	(7,657)	(6,702)	(8,398)	(6,303)	(2,657)	(4,580)
Adjustments to reconcile net income to net cash provided by operating activities	3,892)	2,916)	(426)	704)	2,412)	2,509)
Net cash provided by operating activities	18,849)	15,227)	10,440)	12,784)	12,713)	9,208)
Purchases of property, equipment and technology	(970)	(705)	(736)	(756)	(718)	(707)
Investment securities, purchases	(5,997)	(5,111)	(2,075)	(2,653)	(5,772)	(3,238)
Investment securities, proceeds from maturities and sales	4,585)	5,701)	4,510)	3,996)	3,636)	5,012)
Acquisitions, net of cash and restricted cash acquired	(1,948)	(75)	(77)	(699)	(196)	(302)
Purchases of other investments	(86)	(71)	(267)	(501)	(50)	(46)
Other investing activities	128)	109)	72)	22)	16)	16)
Net cash (used in) provided by investing activities	(4,288)	(152)	1,427)	(591)	(3,084)	735)
Repurchase of class A common stock	(11,589)	(8,676)	(8,114)	(8,607)	(7,192)	(6,891)
Repayments of debt	(1,000)	(3,000)	—)	—)	(1,750)	—)
Dividends paid	(3,203)	(2,798)	(2,664)	(2,269)	(1,918)	(1,579)
Proceeds from issuance of senior notes	3,218)	—)	7,212)	—)	—)	2,488)
Payment of deferred purchase consideration related to the Visa Europe acquisition	—)	—)	—)	(1,236)	—)	—)
Debt issuance costs	—)	—)	—)	—)	—)	(15)
Deposit into U.S. litigation escrow account, U.S. retrospective responsibility plan	—)	—)	—)	—)	(600)	—)
Payments from U.S. litigation escrow account, U.S. retrospective responsibility plan	—)	—)	—)	—)	150)	—)
Cash proceeds from issuance of class A common stock under equity plans	196)	208)	190)	162)	164)	149)
Restricted stock and performance-based shares settled in cash for taxes	(120)	(144)	(160)	(111)	(94)	(76)
Payments to settle derivative instruments	—)	—)	(333)	—)	—)	—)
Other financing activities	(198)	—)	(99)	—)	—)	—)
Net cash used in financing activities	(12,696)	(14,410)	(3,968)	(12,061)	(11,240)	(5,924)
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(1,287)	(37)	440)	(277)	(101)	236)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	578)	628)	8,339)	(145)	(1,712)	4,255)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year	19,799)	19,171)	10,832)	10,977)	9,874)	5,619)
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year	20,377)	19,799)	19,171)	10,832)	8,162)	9,874)

Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30).

Operating cash flows demonstrate a strong upward trajectory over the six-year period, increasing from 9,208 million USD in 2017 to 18,849 million USD in 2022. This growth is primarily driven by a steady rise in net income, which expanded from 6,699 million USD to 14,957 million USD during the same timeframe. A notable characteristic of the operational profile is the consistent and substantial increase in client incentives, which grew from 4,565 million USD in 2017 to 10,295 million USD in 2022, representing a significant ongoing cash commitment.

Operational Efficiency and Cash Conversion: Net cash provided by operating activities consistently exceeds net income in most years, indicating a high quality of earnings. However, the change in operating assets and liabilities has remained consistently negative throughout the period, reflecting significant cash outflows related to the growth of client incentive liabilities and other operational assets. This suggests that while the core business is highly generative, the expansion of the incentive program requires substantial liquidity.
Investment Activity and Capital Allocation: Investing activities show a volatile pattern, alternating between net inflows and outflows. Capital expenditures for property, equipment, and technology remained relatively stable between 700 million USD and 970 million USD annually. The most significant deviation occurred in 2022, where net cash used in investing activities reached 4,288 million USD, largely driven by a surge in acquisitions totaling 1,948 million USD and increased purchases of investment securities.
Shareholder Remuneration and Financing Strategy: Financing activities are dominated by an aggressive capital return strategy. Repurchases of class A common stock increased steadily from 6,891 million USD in 2017 to 11,589 million USD in 2022. Similarly, dividend payments grew from 1,579 million USD to 3,203 million USD over the period. To support these outflows and manage liquidity, the company periodically issued senior notes, with significant proceeds recorded in 2020 and 2022.
Liquidity Position: The overall liquidity position has strengthened considerably. Cash and cash equivalents, including restricted cash, grew from 5,619 million USD at the start of 2017 to 20,377 million USD by the end of 2022. This accumulation of cash suggests a conservative liquidity buffer despite the heavy commitments to share buybacks and dividends.

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Visa Inc. (NYSE:V)

Cash Flow Statement