Risk Factors Update Summary
- Practical applications of artificial intelligence and machine learning were added to increase competition.
- Restrictions around import/export of products, technologies, and components were detailed.
- Increased focus on geopolitical events, security issues, and potential negative impacts of climate change.
Full Text Changes in Most Recent 10-K
Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.
To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=1018724&owner=exclude
Days Sales Outstanding (DSO) (hover/click for more information)
**Click to collapse**
Days Sales Outstanding, commonly known as DSO, is a measure of the average number of days that a company takes to collect payment after a sale has been made. It's a financial indicator that illustrates how well a company manages its accounts receivables and how efficiently it collects cash from customers.
DSO is calculated by dividing the total accounts receivable during a certain period by the total net credit sales for the same period, and then multiplying the result by the number of days in the period. A low DSO value means that it takes a company fewer days to collect its accounts receivable, which is generally positive as it could mean a healthier cash flow. A high DSO number shows that a company is selling its product to customers on credit and taking longer to collect payment, which could be a sign of cash flow problems. An increasing DSO could indicate several issues requiring further investigation.
However, DSO can be influenced by a company's industry and business practices. For instance, if a company operates in an industry where long payment terms are the norm, it may have a high DSO. In some cases, companies may have a high DSO because they are extending more credit to their customers to boost sales. Therefore, it's crucial to compare DSO with competitors in the same industry.
Selling accounts receivable will artificially lower DSO. We provide the DSO and Adjusted DSO data below to give a clearer picture of the company's financial health. Keep in mind that this is only one aspect of an entire financial analysis and should not be used in isolation when making investment decisions.
- Red: The most recent DSO has been adjusted for selling accounts receivable and is more than 10% higher than the previous DSO.
- Light Red: The most recent DSO is adjusted for selling accounts receivable, or more than 10% higher than the previous 3-period average DSO.
- Yellow: The most recent DSO is more than 5% higher than the previous DSO.
- Green: No alarms were triggered for the company.
DSO Data
***This tool is in beta mode and data validation is still in progress.***
| Item (Click to expand row) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2023 |
|---|---|---|---|---|---|---|---|
| Revenues ($ millions) | 232,887 | 280,522 | 386,064 | 469,822 | 513,983 | N/A | 574,785 |
| Accounts Receivable ($ millions) | 16,677 | 20,816 | 24,542 | 32,891 | 42,360 | 43,420 | 52,253 |
| DSO | 26.1 | 27.1 | 23.3 | 25.6 | 30.1 | N/A | 33.2 |
| Accounts Receivable Sold ($ millions) | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Adjusted Accounts Receivable ($ millions) | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Adjusted DSO | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Text from Filings Related to Selling Accounts Receivable
Free Cash Flow (FCF, gray bars), Net Income (blue line) and Adjusted Free Cash Flow are used to validate reported financial performance. Adjusted Free Cash Flow provides a more accurate measure of cash generated from normal operating activities.
- Dotted line indicates the beginning of sales of Accounts Receivable included in FCF adjustment. Selling Receivables data is only pulled for the past 6 years. If the red dotted line appears on todays date (right end of the graph) that indicates that we did not find sales of accounts receivable for the company.
- Cash generated from selling accounts receivable is subtracted from Free Cash Flow. See "DSO" tab for data.
- Stock-Based Compensation, if paired with Share Buybacks, is removed from Free Cash Flow. GAAP treats such transactions as financing expenses. Adjusted Free Cash Flow effectively treats this as a normal operating use of cash for employee compensation. The adjustment is the minimum of Stock-Based Compensation and Share Buybacks
- Gross capex (rather than net capex) is used to exclude one time items that would reduce capex and increase fcf. For companies with regular asset sales, net capex should be evaluated.
Click any value in the table below to view the endpoint the company used to report each data point. We aim to flag year-to-year changes that could indicate more or less aggressive accounting practices. Clicking the row label in the "Item" column will expand the entire row.
Net Income and Adjusted Free Cash Flow Data
| Item (Click to expand row) | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2023 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Income ($ millions) | 476 | 645 | 902 | 1,152 | 631 | -39 | 274 | -241 | 596 | 2,371 | 3,033 | 10,073 | 11,588 | 21,331 | 33,364 | -2,722 | 20,079 | 30,425 |
| Cash Flow from Operations ($ millions) | 1,405 | 1,697 | 3,293 | 3,495 | 3,903 | 4,180 | 5,475 | 6,842 | 12,039 | 17,203 | 18,365 | 30,723 | 38,514 | 66,064 | 46,327 | 46,752 | N/A | 84,946 |
| Capital Expenditures ($ millions) | 224 | 333 | 373 | 979 | 1,811 | 3,785 | 3,444 | 4,893 | 4,589 | 7,804 | 11,955 | 13,427 | 16,861 | 40,140 | 61,053 | 63,645 | 54,733 | 52,729 |
| Free Cash Flow ($ millions) | 1,181 | 1,364 | 2,920 | 2,516 | 2,092 | 395 | 2,031 | 1,949 | 7,450 | 9,399 | 6,410 | 17,296 | 21,653 | 25,924 | -14,726 | -16,893 | 16,921 | 32,217 |
| Stock-Based Compensation ($ millions) | 185 | 275 | 341 | 424 | 557 | 833 | 1,134 | 1,497 | 2,119 | 2,975 | 4,215 | 5,418 | 6,864 | 9,208 | 12,757 | 19,621 | N/A | 24,023 |
| Total Buybacks ($ millions) | 248 | 100 | N/A | N/A | 277 | 960 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 6,000 | N/A | N/A |
| Accounts Receivable Sold ($millions) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Adjusted Free Cash Flow ($ millions) | 996 | 1,264 | 2,920 | 2,516 | 1,815 | -438 | 2,031 | 1,949 | 7,450 | 9,399 | 6,410 | 17,296 | 21,653 | 25,924 | -14,726 | -22,893 | N/A | 32,217 |