Dr. Paul Borosky, DBA, MBA
Business Consultant & Author
Guide 22 of 34 · The Cash Flow Statement
Where Do Stock Buybacks Go on the Cash Flow Statement?
$90.7 billion out the door. On purpose.
In fiscal 2025, Apple spent $90.7 billion buying back its own stock and $15.4 billion on dividends. Both show up in one place on the cash flow statement. Find that place, and you can explain three other numbers that confuse beginners: negative retained earnings, a shrinking share count, and a sky-high return on equity.
Last Updated: 10/27/2026 · Written by Dr. Paul Borosky, DBA, MBA
The Short Answer
Where Do Stock Buybacks Go on the Cash Flow Statement?
Textbook Definition
Share repurchases are reported as a cash outflow in the financing activities section of the statement of cash flows, alongside dividends paid, debt issued, and debt repaid.
In Plain English
Buybacks are money moving from the company to its owners, so they go in financing, next to dividends. They show as a negative number because cash is leaving. On the balance sheet, they shrink equity.
Cash Returned to Shareholders
Dividends Paid + Stock Buybacks
Apple, fiscal 2025: $106.1B
In Apple’s 10-K the buyback line is called repurchases of common stock. Dividends sit on the line above it as payments for dividends and dividend equivalents.
One Real Company
Apple’s Buybacks and Dividends, 2021 to 2025
Dividends barely move. Buybacks are the giant. In three of these five years, Apple returned more cash than its free cash flow.
| Line | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Stock buybacks | (90,711) | (94,949) | (77,550) | (89,402) | (85,971) |
| Dividends paid | (15,421) | (15,234) | (15,025) | (14,841) | (14,467) |
| Cash from financing activities | (120,686) | (121,983) | (108,488) | (110,749) | (93,353) |
| Free cash flow | 98,767 | 108,807 | 99,584 | 111,443 | 92,953 |
| Shares outstanding (millions) | 14,949 | 15,344 | 15,744 | 16,216 | 16,701 |
Source: Apple Form 10-K filings, fiscal 2021 to 2025, as analyzed in the book. $ millions unless noted.
The Method
How to Trace a Buyback Through All Three Statements
Cash flow statement: financing.
Find repurchases of common stock. That is the cash that left. Apple: $90.7 billion in 2025.
Balance sheet: equity.
Buybacks reduce shareholders’ equity. Apple retires the shares it buys, so the reduction shows up mainly in retained earnings rather than a treasury line.
Balance sheet: retained earnings.
Years of payouts bigger than profit push this line negative. Apple’s fell from $5.6 billion in 2021 to negative $14.3 billion in 2025.
Income statement: earnings per share.
Fewer shares lifts EPS even when profit is flat. Apple’s EPS rose from $5.67 to $7.49.
Ratios: return on equity.
Smaller equity makes ROE balloon. That is why Apple’s ROE sits around 152%.
Dividends vs. Buybacks
Dividends are steady cash in shareholders’ pockets. Buybacks shrink the share count, so every remaining owner holds a bigger piece. Apple uses both, but buybacks are about six times larger. That mix is the root of almost every unusual number on Apple’s balance sheet. The full equity story is in retained earnings.
Compare It
Apple vs. Microsoft: Two Payout Philosophies
Microsoft returns huge sums to shareholders too. It leans more on dividends and less on buybacks, and it keeps more of its earnings. Its equity keeps growing. Apple’s stays lean.
| Latest fiscal year | Apple | Microsoft |
|---|---|---|
| Main payout tool | buybacks | more dividends |
| Retained earnings | about ($14B) | about $238B |
| Total equity | about $74B | about $343B |
| Return on equity | 152% | 30% |
Microsoft comparisons as described in the book. Microsoft’s fiscal year ends in June.
Same goal, returning cash to owners. Different mix. That single difference explains nearly every balance sheet contrast between the two companies.
Beginner Traps
What Do Beginners Get Wrong About Buybacks?
- Looking for buybacks in the investing section.
- Reading negative financing cash as a sign of trouble.
- Missing that buybacks shrink equity and inflate return on equity.
- Giving the company full credit for EPS growth that came from fewer shares.
- Expecting a treasury stock balance when the company retires its shares.
- Comparing payout totals without checking free cash flow.
How the Book Grades It
From the Book
The Missing Piece of the Puzzle
Cash Flow Statement · Financing Activities
Where the Cash Goes
Now you can see, in actual cash, why Apple’s retained earnings turned negative, why its share count keeps shrinking, and why its equity stays so lean.
The buyback thread runs through every statement and a dozen ratios. The book connects all of it.
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Stock Buyback Questions
Are stock buybacks an operating, investing, or financing activity?
How do stock buybacks affect the balance sheet?
Why do buybacks increase earnings per share?
How much did Apple spend on buybacks?
Keep Going
Related Guides
See the whole statement in the cash flow statement guide.
Written by Dr. Paul Borosky, DBA, MBA, business consultant, author, and adjunct finance instructor with an MBA focused in finance.
This page is for general educational purposes only. It is not investment, financial, tax, accounting, or legal advice, and nothing here is a recommendation to buy or sell any security. Apple and Microsoft figures come from their public filings as analyzed in the book. Apple and Microsoft are trademarks of their respective owners, and this page is not affiliated with or endorsed by either company.