2024 Cash Flow Analysis for Qualcomm Inc QCOM

Qualcomm Inc. is a leading multinational corporation that specializes in the design and manufacturing of semiconductors and telecommunications equipment. Headquartered in San Diego, California, Qualcomm was founded in 1985 and is renowned for its innovations in mobile technology, particularly in the development of 5G technology and mobile processors.

The cash flow statement provides insight 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 a company is managing its cash resources.

How to read the chart

The chart above illustrates the cash flow of Qualcomm Inc. in 2024. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

At the beginning of the year, Qualcomm's cash position was strong. However, the cash decreased over the year, primarily due to financing and investing activities. The cash flow from operating activities was the largest source of cash, while investing activities resulted in a cash outflow.

The cash flow from investing activities was negative, indicating that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities was also negative, reflecting that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, the company's cash position at the end of the year was slightly lower than at the beginning.

Real-Time Cash Flow Counter

To provide a sense of the scale of Qualcomm Inc.'s cash flow, a real-time counter has been created to simulate 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 designed to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2024, Qualcomm Inc. generated $12,202 million in cash from operating activities, spent $3,623 million on investing activities, and used $9,269 million in financing activities. Consequently, the company's cash balance decreased by $678 million during the year.

The company's beginning cash balance was $8,527 million, which typically includes cash and cash equivalents like short-term investments that can be easily converted into cash. By the end of the year, the company's cash balance was $7,849 million.

Qualcomm's capital expenditures for the year amounted to $1,041 million, representing the cash spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations results in a free cash flow of $11,161 million in 2024. This amount represents the cash available for dividends, stock repurchases, or other investments.

Summary

Qualcomm Inc.'s cash flow in 2024 highlights a robust generation of cash from operating activities, which significantly supports its ability to invest in new projects and manage its financial obligations. Despite the negative cash flow from investing and financing activities, Qualcomm maintained a strong free cash flow, indicating a healthy financial position that allows for strategic investments and shareholder returns.