Amazon.com, Inc. is a multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. The company is headquartered in Seattle, Washington, and was founded in 1994. Amazon is renowned for its vast online marketplace, Amazon Web Services (AWS), and devices like the Kindle and Echo.
The cash flow statement provides insights into how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to understand how Amazon is managing its cash resources.
The chart above illustrates the cash flow of Amazon.com, Inc. in 2024. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.
We begin on the left with Amazon's cash position at the start of the year. During the year, the cash increased, indicating that the company generated more cash than it used for financing and investing activities. The cash flow from operating activities is the largest source of cash, while the cash flow from investing activities is negative, indicating significant investments. The cash flow from financing activities is also negative, reflecting cash outflows for purposes such as debt repayments or share buybacks.
After accounting for the change in cash, we conclude on the right with Amazon's cash position at the end of the year.
To convey the scale of Amazon.com, Inc.'s cash flow, we have created a real-time counter that simulates the company's cash flow for 2024. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.
This is not a live counter of real cash flows as they happen, but a simulation based on the company's reported cash flow for 2024. The counter is intended to give you a sense of the scale of the company's cash flow and how quickly it moves.
In 2024, Amazon.com, Inc. generated $115,877 million in cash from operating activities, spent $94,342 million on investing activities, and used $11,812 million in financing activities. Consequently, the company's cash balance increased by $8,422 million during the year.
The company's beginning cash balance was $73,890 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $82,312 million.
The company's capital expenditures for the year were $82,999 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $32,878 million in 2024. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.
| Cash Flow from Operations | 115,877 |
| Cash Flow from Investing | -94,342 |
| Cash Flow from Financing | -11,812 |
| Changes in Cash | 9,723 |
| Effect of Exchange Rate Changes | -1,301 |
| Beginning Cash Position | 73,890 |
| Ending Cash Position | 82,312 |
| Capital Expenditures | -82,999 |
| Free Cash Flow | 32,878 |
All amounts in USD (Millions)
Amazon.com, Inc. demonstrated robust cash flow from operating activities in 2024, which significantly contributed to its increased cash balance by the end of the year. Despite substantial investments reflected in the negative cash flow from investing activities, the company maintained a strong free cash flow, indicating its capacity to fund further growth initiatives or return value to shareholders. The negative cash flow from financing activities suggests a focus on reducing liabilities or returning capital to investors.
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