2024 Cash Flow Analysis for Visa Inc. V

Visa Inc. is a global payments technology company that facilitates electronic funds transfers throughout the world, primarily through Visa-branded credit cards, debit cards, and prepaid cards. Headquartered in Foster City, California, Visa was founded in 1958 and has become a leader in the payments industry, known for its secure and reliable payment solutions.

The cash flow statement provides insight into how much cash or cash equivalents a company has generated and used during 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 Visa 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 the company's cash position at the start of the fiscal year. During the year, the cash decreased, indicating that a portion of it was utilized 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, suggesting that the company spent more on new investments than it received from selling assets or investments.

The cash flow from financing activities is 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, we conclude on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Visa 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.

Cash Flow Statement

In 2024, Visa Inc. generated $19,950 million in cash from operating activities, spent $1,926 million on investing activities, and used $20,633 million for financing activities. Consequently, the company's cash balance decreased by $2,227 million during the year.

The company's beginning cash balance was $21,990 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 $19,763 million.

The company's capital expenditures for the year were $1,257 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 $18,693 million in 2024. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Visa Inc. demonstrated strong cash flow from operating activities in 2024, generating nearly $20 billion. Despite significant outflows in financing activities, which included share buybacks and dividends, the company maintained a robust free cash flow of $18.7 billion. This indicates Visa's ability to generate substantial cash from its core operations, providing flexibility for strategic investments and shareholder returns. The decrease in cash balance, primarily due to financing activities, reflects Visa's ongoing commitment to returning value to its shareholders.