Start with a commentary on how their Operating Cash Flow has been going. How is it...

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Start with a commentary on how their Operating Cash Flow has been going. How is it trending and is this good, bad, or indifferent? Look at the increases and decreases in the assets and liabilities - do those increases and decreases make sense in the context of AMAT's change in sales from year to year? Example: Sales went up this year, so what should that mean for AR? Recall Weeks 2 and 4. It is important that you understand that those are not the balance sheet numbers, those are the changes in the balance sheet numbers. Also, AR is in parentheses because it increased, not decreased. If this note is surprising/confusing to you, please rewatch the video on Walking through the Indirect Method Discuss where they are getting cash and using cash. Make sure you netted the numbers for the summary sheet that I asked you to. What portion of their cash inflows are coming from what sources? Do you think it's good or bad (and why)? What portion of their cash outflows are they using on what? Do you think it's good or bad (and why)? Provide a one-to-two-sentence summary of their cash flow situation and what you think about it. Please note - any judgment you make should have an explanation for why you have that opinion. Don't just say "it's good." You need to explain why you think that. Fiscal Year Cash flows from operating activities: Net income Adjustments required to reconcile net income to cash provided by operating activities: Depreciation and amortization Changes in operating assets and liabilities, net of amounts acquired: Severance and related charges Deferred income taxes Other Share-based compensation 2023 2022 2021 6,856 6,525 5,888 - 515 444 394 (4) 148 24 (223) 80 40 36 (70) 490 413 346 Accounts receivable 903 (1,109) (1,989) Inventories 207 (1,590) (405) Other current and non-current assets (48) (16) (602) Accounts payable and accrued (138) 390 465 Contract liabilities (167) 1,039 755 Income taxes payable (20) (541) 396 38 35 36 8,700 5,399 5,442 Cash provided by operating activities Cash flows from investing activities: Capital expenditures Cash paid for acquisitions, net of cash acquired Proceeds from sales and maturities of investments Purchases of investments Cash used in investing activities Cash flows from financing activities: Proceeds from commercial paper Repayments of commercial paper Proceeds from common stock issuances Common stock repurchases Tax withholding payments for vested equity awards Payments of dividends to stockholders Other liabilities Repayments of principals on finance leases Cash used in financing activities Increase (decrease) in cash, cash equivalents and restricted cash equivalents Cash, cash equivalents and restricted cash equivalents - beginning of period Cash, cash equivalents and restricted cash equivalents - end of period (1,106) (787) (668) (25) (441) (12) 1,268 1,363 1,471 (1,672) (1,492) (2,007) (1,535) (1,357) (1,216) 991 (900) 227 (2,189) (179) (975) 199 (6,103) (266) (873) 175 (3,750) (178) (838) (7) - - (3,032) (7,043) (4,591) 4,133 (3,001) (365) 2,100 5,101 5,466 6,233 2.100 5.101 Start with a commentary on how their Operating Cash Flow has been going. How is it trending and is this good, bad, or indifferent? Look at the increases and decreases in the assets and liabilities - do those increases and decreases make sense in the context of AMAT's change in sales from year to year? Example: Sales went up this year, so what should that mean for AR? Recall Weeks 2 and 4. It is important that you understand that those are not the balance sheet numbers, those are the changes in the balance sheet numbers. Also, AR is in parentheses because it increased, not decreased. If this note is surprising/confusing to you, please rewatch the video on Walking through the Indirect Method Discuss where they are getting cash and using cash. Make sure you netted the numbers for the summary sheet that I asked you to. What portion of their cash inflows are coming from what sources? Do you think it's good or bad (and why)? What portion of their cash outflows are they using on what? Do you think it's good or bad (and why)? Provide a one-to-two-sentence summary of their cash flow situation and what you think about it. Please note - any judgment you make should have an explanation for why you have that opinion. Don't just say "it's good." You need to explain why you think that. Fiscal Year Cash flows from operating activities: Net income Adjustments required to reconcile net income to cash provided by operating activities: Depreciation and amortization Changes in operating assets and liabilities, net of amounts acquired: Severance and related charges Deferred income taxes Other Share-based compensation 2023 2022 2021 6,856 6,525 5,888 - 515 444 394 (4) 148 24 (223) 80 40 36 (70) 490 413 346 Accounts receivable 903 (1,109) (1,989) Inventories 207 (1,590) (405) Other current and non-current assets (48) (16) (602) Accounts payable and accrued (138) 390 465 Contract liabilities (167) 1,039 755 Income taxes payable (20) (541) 396 38 35 36 8,700 5,399 5,442 Cash provided by operating activities Cash flows from investing activities: Capital expenditures Cash paid for acquisitions, net of cash acquired Proceeds from sales and maturities of investments Purchases of investments Cash used in investing activities Cash flows from financing activities: Proceeds from commercial paper Repayments of commercial paper Proceeds from common stock issuances Common stock repurchases Tax withholding payments for vested equity awards Payments of dividends to stockholders Other liabilities Repayments of principals on finance leases Cash used in financing activities Increase (decrease) in cash, cash equivalents and restricted cash equivalents Cash, cash equivalents and restricted cash equivalents - beginning of period Cash, cash equivalents and restricted cash equivalents - end of period (1,106) (787) (668) (25) (441) (12) 1,268 1,363 1,471 (1,672) (1,492) (2,007) (1,535) (1,357) (1,216) 991 (900) 227 (2,189) (179) (975) 199 (6,103) (266) (873) 175 (3,750) (178) (838) (7) - - (3,032) (7,043) (4,591) 4,133 (3,001) (365) 2,100 5,101 5,466 6,233 2.100 5.101