Acquisition payments, net of cash acquired

Cash paid for business acquisitions less cash acquired, retaining the reported payment sign.

Worked example · a round-number company

Acquisition payments, net of cash acquired$1.0B÷Revenue$5.0B=Share of revenue20.0%This period$1.0B÷A year before$800M− 1 =Change+25.0%

How to read it

↕Neither higher nor lower is better. Shows the net cash used to acquire businesses.

Keep in mind

  • A positive value is a net payment; a negative value indicates net cash acquired. Excludes noncash consideration.