24 Cash flow statement
The cash flow statement shows the movements in the Group’s cash and cash equivalents.
Cash and cash equivalents are defined as cash on hand, current bank accounts, and time deposits with an original maturity of three months or less.
The reconciliation of the Group’s net profit to operating profit, which is used as the starting point for the cash flow statement, is as follows:
| In CHF million | 2022 | 2021 | ||
|---|---|---|---|---|
| Net profit | 659 | 881 | ||
| Income taxes | 194 | 243 | ||
| Financial result | 44 | 45 | ||
| Result from associates | 7 | –3 | ||
| Operating profit | 904 | 1 166 |
Details of specific line items in operating cash flow are included in the following table:
| In CHF million | 2022 | 2021 | ||
|---|---|---|---|---|
| Other non-cash items | ||||
| Share-based payments | 24 | 19 | ||
| Change in provisions | 158 | 190 | ||
| Change in employee benefits | 8 | 15 | ||
| Change in bad debt allowances | 64 | 28 | ||
| Others | –6 | –31 | ||
| Total other non-cash items | 248 | 221 | ||
| Other cash items | ||||
| Change in provisions | –167 | –153 | ||
| Change in employee benefits | –12 | –12 | ||
| Total other cash items | –179 | –165 | ||
| Change in net working capital | ||||
| Accounts receivable | –60 | –104 | ||
| Contract assets | –72 | –136 | ||
| Inventories | –283 | –183 | ||
| Prepaid expenses | –19 | 2 | ||
| Accounts payable | 48 | 108 | ||
| Contract liabilities | 67 | 368 | ||
| Accrued expenses | –56 | 4 | ||
| Total change in net working capital | –375 | 59 |