Stock Analysis on Net

International Business Machines Corp. (NYSE:IBM)

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.

International Business Machines Corp., consolidated cash flow statement

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income 6,023 7,502 1,639 5,743 5,590
Pension settlement charge 3,113 5,894
Depreciation 2,168 2,109 2,407 3,888 4,227
Amortization of capitalized software and acquired intangible assets 2,499 2,287 2,395 2,529 2,468
Stock-based compensation 1,311 1,133 987 982 937
Deferred taxes (2,330) (1,114) (2,726) (2,001) (3,203)
Net gain on divestitures, asset sales and other (652) (170) (122) (307) (71)
Receivables, including financing receivables (374) 725 (539) 1,372 5,297
Retirement related 265 (462) 331 1,038 936
Inventory (166) 390 71 138 (209)
Other assets/other liabilities 1,601 1,466 (115) (671) 2,087
Accounts payable (13) 65 213 85 138
Changes in operating assets and liabilities, net of acquisitions/divestitures 1,313 2,184 (39) 1,962 8,249
Adjustments to reconcile net income to cash provided by operating activities 7,422 6,429 8,796 7,053 12,607
Net cash provided by operating activities 13,445 13,931 10,435 12,796 18,197
Payments for property, plant and equipment (1,048) (1,245) (1,346) (2,062) (2,618)
Proceeds from disposition of property, plant and equipment 557 321 111 387 188
Investment in software (637) (565) (626) (706) (612)
Purchases of marketable securities and other investments (7,762) (11,142) (5,930) (3,562) (6,246)
Proceeds from disposition of marketable securities and other investments 6,544 10,647 4,665 3,147 5,618
Non-operating finance receivables, net 475
Acquisition of businesses, net of cash acquired (3,289) (5,082) (2,348) (3,293) (336)
Divestiture of businesses, net of cash transferred 698 (4) 1,272 114 503
Net cash used in investing activities (4,937) (7,070) (4,202) (5,975) (3,028)
Proceeds from new debt 5,705 9,586 7,804 522 10,504
Payments to settle debt (6,615) (5,082) (6,800) (8,597) (13,365)
Short-term borrowings (repayments) less than 90 days, net 30 (7) 217 (40) (853)
Common stock repurchases for tax withholdings (651) (402) (407) (319) (302)
Proceeds from issuance of shares 745 414 279
Financing, other (146) (238) (103) 70 92
Distribution from Kyndryl 879
Cash dividends paid (6,147) (6,040) (5,948) (5,869) (5,797)
Net cash used in financing activities (7,079) (1,769) (4,958) (13,354) (9,721)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (358) 9 (244) (185) (87)
Net change in cash, cash equivalents and restricted cash 1,071 5,101 1,031 (6,718) 5,361
Cash, cash equivalents and restricted cash at January 1 13,089 7,988 6,957 13,675 8,314
Cash, cash equivalents and restricted cash at December 31 14,160 13,089 7,988 6,957 13,675

Based on: 10-K (reporting date: 2024-12-31), 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).

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. International Business Machines Corp. net cash provided by operating activities increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Net cash used in 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. International Business Machines Corp. net cash used in investing activities decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
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. International Business Machines Corp. net cash used in financing activities increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.