Bausch Health Companies Inc. (BHC) Cash Flow Statement

The gap between net income and operating cash flow is the central signal in this dataset: in 2026Q1 a $1.4B net loss coexisted with $230.0M of operating cash, suggesting the loss was dominated by non-cash charges such as impairments rather than weak operations. OCF/NI ratios such as 37.87 in 2024Q2 and 6.46 in 2024Q4 reflect a small denominator rather than exceptional cash quality, so these ratios should not be treated as meaningful. Investors should monitor whether the operating cash base holds up once non-cash items normalize.

Free cash flow of $748.0M in 2026Q3 and $671.0M in 2026Q2 stands well above the $83.0M and $87.0M levels seen in the weakest quarters, indicating that the trajectory is dominated by episodic inflows. Capital expenditure has stayed in a narrow band of $39.0M to $115.0M per quarter, so the swings are not explained by investment spending. The recent strength warrants further investigation before being extrapolated.

Large swings in working capital, including a $126.5M inflow in 2024Q3 followed by $195.3M of outflow two quarters later, suggest collection and payment timing rather than structural change. Because these reversals are of similar magnitude to the underlying operating cash flow, the reported quarterly figures should be read on a trailing basis. Data on inventory and receivables detail is not provided, so the specific drivers remain unverified.

With no dividends and negligible repurchases, the free cash flow generated in 2026Q2 and 2026Q3 appears directed toward balance sheet priorities, though the data does not disclose debt repayment amounts. Acquisition outflows of $190.3M in 2025Q4 and $86.9M in 2024Q4 indicate that cash has been partly deployed into acquisitions. Whether these deployments earn adequate returns cannot be assessed from the provided figures.

Summing the ten quarters, operating cash flow totals roughly $4.3B against net income near -$0.7B once the $1.4B 2026Q1 loss is included, a gap that suggests non-cash charges have depressed reported earnings for an extended period. This pattern may reflect amortization and impairment burdens, which the D&A series of roughly $280M to $325M per quarter supports. The conclusion depends on whether those charges represent recurring economic costs, which warrants further investigation.