The Cash Flow Statement lists the company’s cash inflows and outflows from operating, investing, and financing activities.
The Cash Flow Statement is one of three key financial statements that companies are required to disclose to investors every three months (or quarter).
Cash Flow Statement
On the left is a photo of Apple’s first half of 2020 cash flow statement.
At the top of the cash flow statement, the previous cash balances are listed.
The first section on the cash flow statement is cash flows from operating activities. This section includes net income and adjustments such as depreciation and share-based compensation. Depreciation and share-based compensation are recorded as expenses on the income statement, but do not actually remove cash, therefore, it is added back under this section. Cash flow from operating activities also includes cash purchases such as inventories.
In the first half of 2020, Apple generated $43.827 billion of cash from operating activities.
The second section on the cash flow statement is cash flows from investing activities. This section includes the company’s purchases/sales of investment and the acquisition of property. Investors will also find amounts a company paid to acquire other companies during the respective time period.
In the first half of 2020, Apple used $4.656 billion of cash in investing activities.
The third section on the cash flow statement is cash flows from financing activities. This section includes dividend payments, stock repurchases, and the issuance/repayment of debt.
In the first half of 2020, Apple used $46.347 billion of cash in financing activities.
Just below the cash used in financing activities section, investors can see the net change in cash during the respective time period.
Apple started the period with $50.224 billion of cash and used $7.175 billion dollars of cash, resulting in a new cash balance of $43.049 billion.