Learn · Explainer
The cash flow statement
Operating, investing and financing cash flows, and the bridge from net income to operating cash flow, with Apple's 10-K.
The short answer
The cash flow statement shows where a company's cash came from and where it went during the year, in three sections: operating activities (the business itself), investing activities (equipment, acquisitions, securities) and financing activities (debt, dividends, buybacks). It starts from net income and adjusts for everything that wasn't cash. Apple's operating cash flow for fiscal 2026 was $145.1B, against net income of $132.2B.
The three sections
- Operating activities. Net income, plus non-cash costs such as depreciation and stock-based pay, plus or minus changes in receivables, inventory, payables and other working capital. The total is operating cash flow.
- Investing activities. Mostly capital spending on property and equipment, plus acquisitions and purchases and sales of investments. Apple spent $9.0B on property and equipment in fiscal 2026; Amazon spent $131.8B.
- Financing activities. Borrowing and repaying debt, issuing and buying back shares, and paying dividends. Buybacks and dividends both show up here.
The three totals add up to the change in cash for the year, which ties the statement to the cash line on the balance sheet.
From net income to operating cash flow
Of the difference, depreciation and amortization were $13.4B and stock-based compensation $13.8B. Changes in working capital and other items make up the remaining −$14.3B.
Source: Apple 10-K for fiscal 2026, filed Nov 3, 2026
Why the two numbers differ
Net income follows accrual accounting: revenue counts when it's earned and costs when they're incurred, whether or not cash has moved. Operating cash flow counts the cash. Over many years the two tend to track each other, but in any one year they can be far apart. Operating cash flow is higher when a company has large non-cash charges or collects cash before it books revenue; lower when customers pay slowly or inventory builds up. 75 of the 88 companies below reported more operating cash flow than net income.
Operating cash flow minus capital spending is free cash flow.
Operating cash flow against net income
Latest fiscal year from each company's 10-K, companies with positive net income and operating cash flow, sorted by the ratio. Banks are left out: their operating cash flow mixes in lending and trading activity.
Common questions
What are the three sections of a cash flow statement?
Operating activities, investing activities and financing activities. Together they explain the change in the company's cash balance over the period.
Why is operating cash flow different from net income?
Net income includes non-cash items such as depreciation and stock-based pay, and counts revenue and costs when earned or incurred. Operating cash flow adds back the non-cash items and adjusts for changes in working capital.
Where are dividends on the cash flow statement?
In financing activities, along with buybacks, new borrowing and debt repayment.
Is capital spending an operating cost?
No. Purchases of property and equipment are investing activities. They reach the income statement gradually, as depreciation.
What does it mean if operating cash flow is much higher than net income?
Usually large non-cash charges, cash collected ahead of revenue, or working capital released. 75 of 88 companies in the table reported more operating cash flow than net income in their latest year.
See it side by side
The same figures for two companies at once, each linked to its 10-K:
Disclosures
- Editor holdings
- The editor holds shares of Tesla (TSLA) and SpaceX in a long-term retirement account. The editor holds no position in any other company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 9, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
More in Learn and Tools · Methodology & Disclosures explains where every number comes from.