Shopify Historical Cash Flow
| SHOP Stock | CAD 108.35 1.24 1.16% |
Analysis of Shopify cash flow over time is an excellent tool to project Shopify future capital expenditures as well as to predict the amount of cash needed to cover cost of sales, R&D expenses or production expansions. Investors should almost always look for trends in cash flow indicators such as Other Cashflows From Financing Activities of 57 M or Depreciation of 37.7 M as it is a great indicator of Shopify ability to facilitate future growth, repay debt on time or pay out dividends.
Financial Statement Analysis is much more than just reviewing and examining Shopify latest accounting reports to predict its past. Macroaxis encourages investors to analyze financial statements over time for various trends across multiple indicators and accounts to determine whether Shopify is a good buy for the upcoming year.
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About Shopify Cash Flow Analysis
The Cash Flow Statement is a financial statement that shows how changes in Shopify balance sheet and income statement accounts affect cash and cash equivalents. It breaks the analysis down to operating, investing, and financing activities. One of the most critical aspects of the cash flow statement is liquidity, which is the degree to which Shopify's non-liquid assets can be easily converted into cash.
Shopify Cash Flow Chart
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Stock Based Compensation
Compensation provided to employees in the form of equity or options to purchase company stock. This type of compensation is used to align the interests of employees and shareholders.Begin Period Cash Flow
The amount of cash a company has at the beginning of a financial reporting period. It serves as the starting point for calculating the period's cash flow from operations, investing, and financing activities.Capital Expenditures
Capital Expenditures are funds used by Shopify to acquire physical assets such as property, industrial buildings or equipment. This type of outlay is used by management to increase the scope of Shopify operations. These expenditures can include everything from repairing an office equipment, building a brand new facility, or writing new software.Most accounts from Shopify's cash flow statement are interrelated and interconnected. However, analyzing cash flow statement accounts one by one will only give a small insight into Shopify current financial condition. On the other hand, looking into the entire matrix of cash flow statement accounts, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.At this time, Shopify's Net Income is very stable compared to the past year. As of the 2nd of October 2024, Change To Netincome is likely to grow to about 4 B, though Change In Cash is likely to grow to (224.2 M).
Shopify cash flow statement Correlations
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Shopify Account Relationship Matchups
High Positive Relationship
High Negative Relationship
Shopify cash flow statement Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 239.2M | 2.1B | (200.6M) | (853.7M) | (236M) | (224.2M) | |
| Stock Based Compensation | 158.5M | 246.9M | 330.8M | 549M | 615M | 645.8M | |
| Free Cash Flow | 8.2M | 383.0M | 453.6M | (186.5M) | 905M | 950.3M | |
| Change In Working Capital | 20.2M | (100.3M) | (160.9M) | (98.3M) | 195M | 204.8M | |
| Begin Period Cash Flow | 410.7M | 649.9M | 2.7B | 2.5B | 1.6B | 1.7B | |
| Other Cashflows From Financing Activities | 48.3M | 978.8M | 108.6M | 17.5M | 60M | 57M | |
| Depreciation | 35.7M | 70.1M | 66.3M | 90.5M | 70M | 37.7M | |
| Other Non Cash Items | 19.1M | (69.2M) | (2.8B) | 3.0B | (67M) | (63.7M) | |
| Capital Expenditures | 62.4M | 42.0M | 50.8M | 50.0M | 39M | 35.4M | |
| Total Cash From Operating Activities | 70.6M | 425.0M | 504.4M | (136.4M) | 944M | 991.2M | |
| Change To Account Receivables | (130.4M) | (29.1M) | (72.3M) | (127.9M) | 116M | 121.8M | |
| Net Income | (124.8M) | 319.5M | 2.9B | (3.5B) | 132M | 138.6M | |
| Total Cash From Financing Activities | 736.4M | 3.6B | 1.6B | 17.5M | 60M | 57M | |
| End Period Cash Flow | 649.9M | 2.7B | 2.5B | 1.6B | 1.4B | 899.1M | |
| Sale Purchase Of Stock | 736.4M | 2.6B | 1.6B | 17.5M | 20.2M | 19.2M | |
| Investments | (569.5M) | (1.9B) | (2.2B) | (718.6M) | (1.2B) | (1.2B) | |
| Total Cashflows From Investing Activities | (569.5M) | (1.9B) | (2.3B) | (718.6M) | (646.7M) | (679.0M) | |
| Change To Operating Activities | (85.2M) | (150.0M) | (581.4M) | (331.5M) | (298.4M) | (283.5M) | |
| Change To Netincome | 141.7M | 127.0M | (2.3B) | 3.3B | 3.8B | 4.0B | |
| Change To Liabilities | 159.5M | 78.9M | 447.5M | 341.7M | 393.0M | 412.6M | |
| Other Cashflows From Investing Activities | (507.1M) | (1.9B) | (2.3B) | (668.5M) | (601.7M) | (631.8M) |
Pair Trading with Shopify
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Shopify position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shopify will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Shopify could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shopify when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Shopify - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Shopify to buy it.
The correlation of Shopify is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Shopify moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shopify moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Shopify can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Information and Resources on Investing in Shopify Stock
When determining whether Shopify is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Shopify Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Shopify Stock. Highlighted below are key reports to facilitate an investment decision about Shopify Stock:Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Shopify. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. To learn how to invest in Shopify Stock, please use our How to Invest in Shopify guide.You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.