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.

Amphenol Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income from continuing operations	1,945,500)	1,916,800)	1,580,100)	1,213,300)	1,164,000)
Depreciation and amortization	406,400)	392,900)	395,600)	308,100)	312,100)
Stock-based compensation expense	99,000)	89,500)	83,000)	70,500)	63,000)
Loss on early extinguishment of debt	—)	—)	—)	—)	14,300)
Deferred income tax provision (benefit)	(58,800)	(4,700)	(29,600)	30,800)	15,200)
Gain on bargain purchase acquisition	(5,400)	—)	—)	—)	—)
Accounts receivable, net	146,400)	(273,100)	(398,400)	(146,300)	117,300)
Inventories	71,400)	(278,500)	(263,000)	(102,000)	(3,400)
Prepaid expenses and other current assets	(34,100)	49,700)	(20,200)	(88,600)	(6,000)
Accounts payable	(34,600)	62,500)	131,700)	204,300)	(60,200)
Accrued income taxes	7,700)	77,600)	(6,900)	(54,800)	(91,700)
Other accrued liabilities	(7,000)	168,700)	60,400)	148,500)	(37,600)
Accrued pension and postretirement benefits	(300)	(400)	5,800)	9,400)	7,200)
Other long-term assets and liabilities	(7,500)	(26,400)	(14,600)	(1,200)	8,100)
Net change in operating assets and liabilities, excluding effects of acquisitions	142,000)	(219,900)	(505,200)	(30,700)	(66,300)
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities	583,200)	257,800)	(56,200)	378,700)	338,300)
Net cash provided by operating activities	2,528,700)	2,174,600)	1,523,900)	1,592,000)	1,502,300)
Capital expenditures	(372,800)	(383,800)	(360,400)	(276,800)	(295,000)
Proceeds from disposals of property, plant and equipment	4,000)	5,600)	3,700)	12,700)	7,400)
Purchases of investments	(305,700)	(309,400)	(164,500)	(141,600)	(65,400)
Sales and maturities of investments	246,300)	228,200)	155,900)	123,200)	61,600)
Acquisitions, net of cash acquired	(970,400)	(288,200)	(2,225,400)	(50,400)	(937,400)
Other, net	4,900)	16,500)	(13,700)	(600)	—)
Net cash used in investing activities	(1,393,700)	(731,100)	(2,604,400)	(333,500)	(1,228,800)
Proceeds from issuance of senior notes and other long-term debt	354,900)	5,800)	752,100)	942,300)	1,398,800)
Repayments of senior notes and other long-term debt	(15,700)	(10,300)	(912,600)	(404,400)	(1,111,500)
Borrowings under credit facilities	—)	—)	—)	1,567,400)	—)
Repayments under credit facilities	—)	—)	—)	(1,568,100)	—)
Proceeds from short-term borrowings	—)	44,900)	—)	—)	—)
Repayments of short-term borrowings	—)	(44,900)	—)	—)	—)
Borrowings (repayments) under commercial paper programs, net	(632,600)	(159,300)	796,300)	(385,800)	(229,000)
Payment of costs related to debt financing	(2,300)	(400)	(9,300)	(8,700)	(14,900)
Payment of premiums and fees related to early extinguishment of debt	—)	—)	—)	—)	(13,400)
Payment of acquisition-related contingent consideration	—)	—)	—)	(75,000)	—)
Payment of deferred purchase price related to acquisitions	(1,500)	—)	(4,100)	(16,200)	—)
Purchase of treasury stock	(585,100)	(730,500)	(661,700)	(641,300)	(601,700)
Proceeds from exercise of stock options	394,500)	185,300)	288,500)	385,700)	246,100)
Distributions to and purchases of noncontrolling interests	(24,000)	(9,900)	(18,900)	(14,900)	(43,300)
Dividend payments	(500,600)	(477,400)	(346,700)	(297,600)	(279,500)
Transfers to discontinued operations	—)	—)	(28,700)	—)	—)
Net cash used in financing activities	(1,012,400)	(1,196,700)	(145,100)	(516,600)	(648,400)
Net cash provided by operating activities from discontinued operations	—)	—)	16,200)	—)	—)
Net cash provided by investing activities from discontinued operations	—)	—)	716,900)	—)	—)
Net cash used in financing activities from discontinued operations	—)	—)	(100)	—)	—)
Net cash provided by discontinued operations	—)	—)	733,000)	—)	—)
Effect of exchange rate changes on cash and cash equivalents	(20,700)	(70,800)	(12,300)	68,900)	(13,200)
Net increase (decrease) in cash and cash equivalents	101,900)	176,000)	(504,900)	810,800)	(388,100)
Cash and cash equivalents balance, beginning of year	1,373,100)	1,197,100)	1,702,000)	891,200)	1,279,300)
Cash and cash equivalents balance, end of year	1,475,000)	1,373,100)	1,197,100)	1,702,000)	891,200)

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).

Operational performance demonstrates a consistent upward trajectory, with net income from continuing operations growing from 1.16 billion USD in 2019 to 1.95 billion USD by 2023. Net cash provided by operating activities followed a similar growth path, increasing from 1.50 billion USD in 2019 to 2.53 billion USD in 2023. The quality of earnings remains high, as operating cash flow consistently exceeds net income, supported by steady depreciation and amortization expenses which rose from 312 million USD to 406 million USD over the five-year period.

Working Capital Management: Fluctuations in operating assets and liabilities were pronounced between 2020 and 2022. A significant cash outflow occurred in 2021, driven by a 398 million USD increase in accounts receivable and a 263 million USD increase in inventories. However, 2023 marked a reversal of this trend, with a positive net change in operating assets and liabilities of 142 million USD, indicating a recovery in working capital efficiency.
Investment and Growth Strategy: The investing profile is characterized by aggressive inorganic growth and consistent capital reinvestment. Capital expenditures trended upward from 295 million USD in 2019 to a peak of 384 million USD in 2022. Acquisition activity is highly volatile and substantial, notably peaking in 2021 with 2.23 billion USD in net cash outflows and remaining significant in 2023 with 970 million USD spent. This indicates a strategic reliance on acquisitions to drive expansion.
Capital Allocation and Financing: Financing activities reflect a disciplined approach to returning value to shareholders. Dividend payments have increased steadily every year, rising from 279 million USD in 2019 to 501 million USD in 2023. Simultaneously, the company maintained a consistent program of treasury stock repurchases, averaging approximately 640 million USD annually. These outflows are balanced by strategic debt management, including the periodic issuance of senior notes and the use of commercial paper programs to manage short-term liquidity.
Liquidity and Cash Position: The ending cash and cash equivalents balance has remained robust despite heavy investing and financing outflows. After a dip to 891 million USD in 2019, the balance climbed to 1.48 billion USD by the end of 2023. The volatility in annual net cash changes is primarily attributed to the timing of large-scale acquisitions and the settlement of long-term debt.

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Amphenol Corp. (NYSE:APH)

Cash Flow Statement