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.

Eaton Corp. plc, consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	3,223)	2,465)	2,146)	1,415)	2,213)
Depreciation and amortization	926)	954)	922)	811)	884)
Deferred income taxes	(182)	(128)	(111)	(86)	(71)
Pension and other postretirement benefits expense	15)	54)	53)	210)	157)
Contributions to pension plans	(113)	(116)	(343)	(122)	(119)
Contributions to other postretirement benefits plans	(20)	(24)	(20)	(23)	(15)
(Gain) loss on sale of business	—)	(24)	(197)	(91)	66)
Accounts receivable, net	(341)	(743)	(271)	219)	200)
Inventory	(282)	(490)	(629)	371)	(60)
Accounts payable	256)	334)	832)	76)	147)
Accrued compensation	197)	(16)	154)	(65)	(23)
Accrued income and other taxes	61)	170)	(317)	(95)	(49)
Other current assets	(112)	(179)	(116)	(67)	(94)
Other current liabilities	72)	236)	38)	196)	(57)
Changes in working capital	(149)	(688)	(309)	635)	64)
Other, net	(76)	40)	22)	195)	272)
Adjustments to reconcile to net cash provided by operating activities	401)	68)	17)	1,529)	1,238)
Net cash provided by operating activities	3,624)	2,533)	2,163)	2,944)	3,451)
Capital expenditures for property, plant and equipment	(757)	(598)	(575)	(389)	(587)
Cash paid for acquisitions of businesses, net of cash acquired	—)	(610)	(4,500)	(200)	(1,180)
Proceeds from (payments for) sales of businesses, net of cash sold	(2)	31)	3,129)	1,408)	(36)
Proceeds from sales of property, plant and equipment	76)	163)	44)	12)	—)
Investments in associate companies	(68)	(42)	(124)	(19)	(11)
(Purchases) sales of short-term investments, net	(1,861)	(19)	379)	(441)	(70)
Proceeds from (payments for) settlement of currency exchange contracts not designated as hedges, net	92)	(47)	(27)	94)	54)
Other, net	(55)	(78)	(90)	(68)	(36)
Net cash (used in) provided by investing activities	(2,575)	(1,200)	(1,764)	397)	(1,866)
Proceeds from borrowings	818)	1,995)	1,798)	—)	1,232)
Payments on borrowings	(19)	(2,012)	(1,013)	(249)	(348)
Short-term debt, net	(311)	317)	20)	(254)	(159)
Cash dividends paid	(1,379)	(1,299)	(1,219)	(1,175)	(1,201)
Exercise of employee stock options	78)	28)	63)	71)	66)
Repurchase of shares	—)	(286)	(122)	(1,608)	(1,029)
Employee taxes paid from shares withheld	(49)	(60)	(47)	(37)	(46)
Other, net	(9)	(23)	(15)	(6)	(9)
Net cash used in financing activities	(871)	(1,340)	(535)	(3,258)	(1,494)
Effect of currency on cash	16)	4)	(5)	(15)	(4)
Increase (decrease) in cash	194)	(3)	(141)	68)	87)
Cash at the beginning of the period	294)	297)	438)	370)	283)
Cash at the end of the period	488)	294)	297)	438)	370)

Based on: 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), 10-K (reporting date: 2019-12-31).

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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.	Eaton Corp. plc net cash provided by operating activities increased from 2021 to 2022 and from 2022 to 2023.
Net cash (used in) provided by 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.	Eaton Corp. plc net cash (used in) provided by investing activities increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Net cash 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.	Eaton Corp. plc net cash used in financing activities decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Eaton Corp. plc (NYSE:ETN)

Cash Flow Statement