Name: Williams-Sonoma Inc. (NYSE:WSM) | Cash Flow Statement
Creator: Stock Analysis on Net

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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Williams-Sonoma Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Feb 2, 2020	Feb 3, 2019
Net earnings	949,762)	1,127,904)	1,126,337)	680,714)	356,062)	333,684)
Depreciation and amortization	232,590)	214,153)	196,087)	188,655)	187,759)	188,808)
Loss on disposal/impairment of assets	21,869)	25,116)	1,015)	32,365)	1,755)	10,209)
Non-cash lease expense	255,286)	231,350)	216,888)	216,368)	215,810)	—)
Deferred income taxes	(29,085)	(23,823)	2,535)	(13,061)	(2,557)	23,639)
Stock-based compensation expense	84,754)	90,268)	95,240)	73,185)	64,163)	59,802)
Other	(2,796)	(2,339)	(3,994)	(6,047)	(7,740)	(26,778)
Accounts receivable	(7,461)	15,687)	11,896)	(31,503)	(5,034)	(15,329)
Merchandise inventories	209,168)	(208,908)	(239,981)	99,144)	24,219)	(70,331)
Prepaid expenses and other assets	1,016)	(11,823)	(2,060)	(16,388)	(3,189)	(54,691)
Accounts payable	99,043)	(113,521)	56,674)	25,489)	(11,051)	62,377)
Accrued expenses and other liabilities	4,935)	(61,995)	49,460)	129,142)	13,259)	45,976)
Gift card and other deferred revenue	95,005)	31,839)	75,460)	82,841)	(640)	38,899)
Deferred rent and lease incentives	—)	—)	—)	—)	—)	24,929)
Operating lease liabilities	(269,162)	(242,855)	(224,567)	(232,989)	(226,257)	—)
Income taxes payable	35,349)	(18,231)	10,157)	46,933)	735)	(35,208)
Changes in operating assets and liabilities	167,893)	(609,807)	(262,961)	102,669)	(207,958)	(3,378)
Adjustments to reconcile net earnings to net cash provided by operating activities	730,511)	(75,082)	244,810)	594,134)	251,232)	252,302)
Net cash provided by operating activities	1,680,273)	1,052,822)	1,371,147)	1,274,848)	607,294)	585,986)
Purchases of property and equipment	(188,458)	(354,117)	(226,517)	(169,513)	(186,276)	(190,102)
Other	201)	162)	270)	629)	728)	2,203)
Net cash used in investing activities	(188,257)	(353,955)	(226,247)	(168,884)	(185,548)	(187,899)
Repurchases of common stock	(313,001)	(880,038)	(899,433)	(150,000)	(148,834)	(295,304)
Payment of dividends	(232,475)	(217,345)	(187,539)	(157,645)	(150,640)	(140,325)
Tax withholdings related to stock-based awards	(52,831)	(81,290)	(104,235)	(31,729)	(27,752)	(14,437)
Repayment of long-term debt	—)	—)	(300,000)	—)	—)	—)
Debt issuance costs	—)	—)	(778)	(3,645)	—)	—)
Borrowings under revolving line of credit	—)	—)	—)	487,823)	100,000)	60,000)
Repayments under the revolving line of credit	—)	—)	—)	(487,823)	(100,000)	(60,000)
Net cash used in financing activities	(598,307)	(1,178,673)	(1,491,985)	(343,019)	(327,226)	(450,066)
Effect of exchange rates on cash and cash equivalents	954)	(3,188)	(2,914)	5,230)	(1,312)	797)
Net increase (decrease) in cash and cash equivalents	894,663)	(482,994)	(349,999)	768,175)	93,208)	(51,182)
Cash and cash equivalents at beginning of year	367,344)	850,338)	1,200,337)	432,162)	338,954)	390,136)
Cash and cash equivalents at end of year	1,262,007)	367,344)	850,338)	1,200,337)	432,162)	338,954)

Based on: 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02), 10-K (reporting date: 2019-02-03).

The cash flow profile demonstrates a significant expansion in operating capacity and a strategic shift toward aggressive shareholder returns between 2019 and 2024. Net earnings grew substantially from 333.7 million USD in 2019 to a peak of 1.13 billion USD in 2023, before moderating to 949.8 million USD in 2024. This growth in profitability is mirrored by a strong upward trend in net cash provided by operating activities, which reached its highest point of 1.68 billion USD in 2024.

Operating Cash Flow Dynamics: Cash generation from operations is supported by consistent non-cash charges, including depreciation and amortization, which rose steadily from 188.8 million USD in 2019 to 232.6 million USD in 2024. Non-cash lease expenses became a prominent component of the reconciliation starting in 2020, consistently exceeding 215 million USD annually. Significant volatility is observed in working capital, particularly within merchandise inventories and accounts payable. A notable contraction in operating cash flow occurred in 2023, driven by a 609.8 million USD negative impact from changes in operating assets and liabilities, which reversed in 2024 with a positive contribution of 167.9 million USD.
Investing Activity Patterns: Investing activities are characterized by consistent capital expenditures on property and equipment. Annual outflows remained relatively stable between 169 million USD and 226 million USD from 2019 to 2022, followed by a sharp increase to 354.1 million USD in 2023. Spending moderated in 2024 to 188.5 million USD, suggesting a period of intensified infrastructure investment followed by a return to baseline maintenance and growth spending.
Financing and Shareholder Distributions: The company transitioned toward a highly aggressive capital return strategy. Repurchases of common stock increased dramatically, peaking at 899.4 million USD in 2022 and 880.0 million USD in 2023, compared to 295.3 million USD in 2019. Dividend payments have followed a consistent upward trajectory, increasing every year from 140.3 million USD in 2019 to 232.5 million USD in 2024. Debt management was highlighted in 2022 by a 300 million USD repayment of long-term debt.
Liquidity and Cash Position: The ending cash and cash equivalents balance has exhibited high volatility due to the timing of large share repurchases and working capital swings. After a peak of 1.20 billion USD in 2021, cash reserves declined to 367.3 million USD by 2023. However, a strong recovery in operating cash flow in 2024 resulted in a significant net increase in cash, ending the period at 1.26 billion USD.

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