Where does a company's Earnings end up?

patsy_mccabe

Ok, this is something I have been trying to figure out for a while. I will use Apple's 2020 accounts from the Macrotrends website.

So for 2020, Apple had earnings (net profit) of $57,411M.

Dividends paid out were $14,081m.

Stock based compensation was $6,829m.

So where did the remaining $36,501m go? That's what I'm trying to figure out.

Net cash flow was -$10,435m. Change in share holder equity from 2019 to 2020 was -$25,149 (65,339-90,488).

Retained Earnings on Balance Sheet is only $14,966m.

So where did the $36,510m go? Surely you should see it accounted for somewhere.

Apple Income Statement 2005-2021 | AAPL | MacroTrends

Geuze

I will have a look now.

https://s2.q4cdn.com/470004039/files/doc_financials/2020/ar/_10-K-2020-(As-Filed).pdf

Geuze

I see what you mean.

2020 data

Net income 57bn

Yet total assets and total liabilities fell.

And shareholders equity fell.

What's jumping out at me is massive share buybacks?

patsy_mccabe

Share repurchases are accounted for in the Cash Flow - $ 71,478m.

I guess the answer to all this lies in the Cash Flow. I'm slowly getting my head around it.