Bed Bath & Beyond Inc. (NASDAQ:BBBY)

Current Income Tax Expense

The current income tax expense exhibits significant fluctuations over the analyzed periods. Initially, there is a high expense of approximately $355.7 million in the fiscal year ending February 2017, which then sharply decreases to about $95.6 million in 2018 and further to $84.7 million in 2019. The trend reverses starting in 2020, with the current tax expense turning negative to around -$5.5 million, indicating a current tax benefit rather than an expense. This negative trend deepens substantially to -$335.3 million in 2021, before partially recovering to a less negative value of -$40.3 million in 2022. This pattern suggests variations in taxable income or tax positions, possibly reflecting changes in earnings, tax planning, or adjustments to tax liabilities.

Deferred Income Tax Expense

The deferred income tax component shows considerable volatility throughout the periods examined. The deferred tax expense begins at about $24.9 million in 2017 and increases markedly to $175.2 million in 2018, indicating a rising deferred tax liability or reduced deferred tax asset recognition. However, it then sharply reverses to a deferred tax benefit of -$104.1 million in 2019 and further to -$145.5 million in 2020, implying recognition of deferred tax assets or reversals of prior liabilities. This trend flips again in 2021 and 2022, with deferred tax expenses of $149.3 million and $127.3 million respectively, suggesting recognition of deferred tax liabilities or a reduction in deferred tax assets during these later periods.

Overall Provision (Benefit) for Income Taxes

The combined provision for income taxes correlates with the dynamics seen in both current and deferred components. Initially, the overall tax provision is substantially positive, reaching $380.5 million in 2017 and decreasing to $270.8 million in 2018. The overall provision then shifts to a net tax benefit in 2019 and 2020, at approximately -$19.4 million and -$151.0 million respectively, reflecting the significant deferred tax benefits and negative current tax expenses during these years. In 2021, the net tax benefit deepens slightly to -$186.0 million before turning back to a net tax expense in 2022 at approximately $87.0 million. This pattern aligns with the volatility observed in the underlying tax expense components and may be indicative of changing profitability, tax law impacts, or tax asset valuation adjustments.

Summary of Trends

The financial data reveals significant swings in both current and deferred income tax expenses, contributing to variable overall income tax provisions. The full reversal from tax expenses to tax benefits and back to expenses within the six-year period suggests notable changes in the company’s tax position or accounting policies. These fluctuations could be linked to operational performance, one-time tax events, changes in tax legislation, or reassessments of deferred tax assets and liabilities. Careful monitoring of these items is essential to understanding the company’s effective tax rate and future tax obligations.

The analysis of the annual financial data reveals several notable trends and fluctuations in the company’s tax-related metrics and effective income tax rate over the observed periods.

Federal Statutory Tax Rate

The federal statutory tax rate shifted from an earlier unspecified value to 32.66% in 2018 and then stabilized at 21% from 2019 through 2022. This suggests alignment with prevailing tax legislation changes during that timeframe.

State Income Tax Rate, Net of Federal Impact

This rate fluctuated noticeably, starting at 4.12% in 2018, then turning negative in 2019 (-1.38%), and returning to positive values in subsequent years, hovering around 3.9% to 4.28%. These variations indicate differing state tax impacts year over year, sometimes reducing overall tax expense.

Uncertain Tax Positions

The uncertain tax positions percentage increased from a low 0.32% in 2018 to 7.24% in 2019, then sharply decreased before rising again to 2.16% by 2022. This pattern shows fluctuating uncertainties in tax interpretations or disputes, peaking notably in 2019.

Impact of the Tax Act

The impact is reported primarily in 2018 and 2019 with values of 3.86% and 2.7%, after which it disappears from the data. This likely reflects a one-time tax reform influence realized during these years.

Goodwill Non-deductible Impairment Charges

Significant negative values occurred in 2019 (-18.64%) and 2020 (-4.84%), with no subsequent charges recorded. This indicates impairment losses that adversely affected the tax position during those years.

Tax Deficiencies Related to Stock-Based Compensation

There is a downward trend from a positive 1.39% in 2018 to negative values afterward, reaching as low as -6.48% in 2019 but gradually improving to -0.81% in 2022. This suggests varying impacts of stock compensation on taxable income, with more favorable outcomes in recent years.

Tax Credits

Tax credits fluctuated between slight positive and negative impacts, starting with a small benefit in 2018 (-0.96%), then a peak positive impact in 2019 (4.53%) before settling near 0.38% in 2022. The pattern indicates the company’s ability to utilize tax credits, with the highest contribution in 2019.

CARES Act

The CARES Act impact is absent until 2021, where a substantial positive 35.98% effect was noted, followed by a sharp decline to 0.94% in 2022. This highlights a significant tax relief benefit derived from legislative measures during the COVID-19 pandemic, largely realized in 2021.

Valuation Allowance

Valuation allowance was not reported before 2021 but showed considerable negative values in 2021 (-7.74%) and a pronounced increase to -48.01% in 2022, signifying major adjustments to deferred tax assets against expected realizability.

Canadian Branch Earnings

A modest but consistent positive contribution is present from 2020 (0.9%) through 2022 (1.6%), reflecting ongoing earnings from Canadian operations that have influenced the overall tax rate.

Other Factors

The “Other” category shows variability, with a negative impact of -2.46% in 2018, a positive 3.41% in 2019, a small negative in 2020 (-0.34%), and positive 2.35% and 0.47% in 2021 and 2022, respectively, indicating miscellaneous tax effects fluctuating year to year.

Effective Income Tax Rate

The effective income tax rate demonstrated marked volatility. It started at a high of 38.93% in 2018, dropped sharply to 12.38% in 2019, increased to 19.75% in 2020, then spiked dramatically to 55.17% in 2021, before reversing to a significant negative rate of -18.4% in 2022. This extreme variability suggests the influence of both one-time tax benefits and charges, significant tax legislation impacts, and valuation allowance shifts set against the company’s fluctuating profitability base.

Overall, the data illustrates a period of significant tax rate fluctuation influenced by tax legislation impacts, impairment charges, tax relief acts, and valuation changes. The effective tax rate’s wide swings reflect underlying operational and tax planning complexities, with notable tax benefits realized in 2021 (CARES Act) and adjustments in valuation allowances in 2022 contributing heavily to the variability observed.

The financial data reveals several notable trends in key balance sheet and expense categories over the six-year period analyzed.

Inventories

There is a general decline from 33,120 thousand USD in early 2017 to 4,077 thousand USD by early 2022, indicating a substantial reduction in inventory levels. The decrease is particularly sharp after 2020, suggesting possible changes in inventory management, sales volume, or strategic shifts in product lines.

Operating Lease Liabilities and Assets

Operating lease liabilities are reported from 2021 onwards, starting at 601,378 thousand USD and decreasing slightly to 473,397 thousand USD in 2022. Correspondingly, operating lease assets appear from 2020 with negative values declining from -555,642 thousand USD to -376,079 thousand USD. This pattern suggests adoption and subsequent partial reduction of lease obligations, likely reflecting changes in property leases or accounting under lease accounting standards.

Deferred Rent and Other Rent Credits

These liabilities declined from 73,577 thousand USD in 2017 to 42,147 thousand USD in 2019 and are not reported after 2019, which may correlate with the introduction of operating lease liabilities and assets indicating a shift in lease accounting presentation.

Insurance

Insurance-related liabilities or expenses fell steadily from 60,789 thousand USD in 2017 to 6,416 thousand USD in 2022, signaling reduced insurance costs or a change in how these amounts are recorded.

Stock-Based Compensation

There is a marked decrease from 41,715 thousand USD in 2017 to a low of 1,014 thousand USD in 2021, with a slight increase to 1,592 thousand USD in 2022. This trend may reflect changes in employee compensation policies or restructuring efforts affecting stock awards.

Nonqualified Deferred Compensation Plan

Reported only through 2019, amounts diminished from 27,857 thousand USD in 2017 to 6,771 thousand USD, potentially indicating settlement or discontinuation of these plans.

Merchandise Credits and Gift Card Liabilities

This liability fluctuates but generally trends upwards from 63,031 thousand USD in 2017 to 56,690 thousand USD in 2022, with some volatility reflecting consumer credit activity and gift card usage impacting liabilities.

Accrued Expenses

These liabilities decreased from 57,401 thousand USD in 2017 to 23,412 thousand USD in 2022, with a peak in 2020 at 51,334 thousand USD possibly related to extraordinary expenses during that year.

Obligations on Distribution Facilities

These decreased moderately from 40,363 thousand USD in 2017 to 26,126 thousand USD in 2020, with no data reported thereafter. The absence of recent data could indicate these obligations were settled or reclassified.

Intangibles and Goodwill

Intangibles assets are noted only in 2021 and 2022, showing increases from 1,008 thousand USD to 1,685 thousand USD. Goodwill assets sharply decline from 44,332 thousand USD in 2020 to 90 thousand USD in 2022, suggesting impairments or asset disposals. Correspondingly, negative goodwill and intangible amortizations decreased from higher values in 2017 toward zero by 2020.

Carryforwards and Other Tax Credits

These assets experience significant growth from 40,481 thousand USD in 2017 to 189,746 thousand USD in 2022, implying increasing tax credits or carryforward benefits accrued over time.

Other Assets and Liabilities

Reported figures in the "Other" category show relative stability with modest increases in asset amounts and consistent negative values for liabilities, suggesting steady but unremarkable movements in miscellaneous categories.

Deferred Tax Assets and Liabilities

Gross deferred tax assets rose markedly to 979,917 thousand USD in 2020 before declining to 792,096 thousand USD in 2022. The valuation allowance experienced a significant increase in negative amounts from -26,011 thousand USD in 2021 to -249,529 thousand USD in 2022, reducing net deferred tax assets substantially from 689,539 thousand USD to 542,567 thousand USD. Deferred tax liabilities decreased over the period from -304,802 thousand USD in 2017 to -542,703 thousand USD in 2022. The net deferred tax assets (liabilities) fluctuated dramatically, peaking at 276,528 thousand USD in 2020 before dropping near zero by 2022, indicating potential volatility in tax timing differences and valuation assessments.

Depreciation

Depreciation expenses showed a declining trend from -137,144 thousand USD in 2017 to -105,649 thousand USD in 2021 but rose sharply again to -146,970 thousand USD in 2022, reflecting changes in asset base or accelerated depreciation policies.

Prepaid Expenses

Prepaid expenses are negative in most periods where reported, indicating adjustments or reversals, with no consistent trend across the years.

Overall, the data reveals significant adjustments in lease accounting, notable reductions in several expense categories, particularly stock-based compensation and insurance, and large fluctuations in deferred tax assets and liabilities. The reduction in inventories and goodwill suggests shifts in operational scale or impairment activities, while the increasing carryforwards and tax credits may signal tax strategy opportunities or benefits.

The financial data shows significant fluctuations over the six-year period, reflecting notable changes in asset values, liabilities, equity, and net earnings.

Total Assets

Reported total assets exhibited an overall declining trend from US$6.85 billion in 2017 to US$5.13 billion in 2022, with a peak in 2020 at approximately US$7.79 billion. Adjusted total assets followed a similar trajectory, increasing steadily to about US$7.51 billion in 2020 before experiencing a sharp decline to US$5.13 billion by 2022.

Total Liabilities

Both reported and adjusted total liabilities remained relatively stable from 2017 through 2019, hovering around US$4.0 to US$4.15 billion. A substantial increase occurred in 2020, peaking near US$6.03 billion, followed by a gradual decrease to approximately US$4.96 billion in 2022.

Shareholders’ Equity

Shareholders' equity experienced a marked decline during the period. Reported equity decreased from approximately US$2.72 billion in 2017 to just US$174 million in 2022, showing a sharp fall especially after 2019. Adjusted equity values mirrored this trend, though they started slightly lower and ended at a similar low level in 2022.

Net Earnings (Loss)

Reported net earnings started strongly positive at US$685 million in 2017 but showed a declining pattern, turning negative from 2019 onwards, with a loss widening to US$559 million by 2022. Adjusted net earnings followed this decline but presented greater volatility, with a peak of US$600 million in 2018, then shifting into losses from 2019, reaching a reduced loss of US$432 million in 2022 compared to reported values.

Overall, the data indicates that the company experienced asset value growth until 2020, followed by a marked reduction. Total liabilities increased significantly around 2020, possibly associated with financial pressures or strategic decisions to leverage, before receding somewhat by 2022. Shareholders' equity drastically decreased over the period, signaling erosion in net worth which may reflect accumulated losses and possibly impairments or write-downs. The profitability of the company deteriorated, turning from solid profits in initial years to persistent losses in recent years, suggesting operational or market challenges impacting earnings performance.

The financial performance of the company over the examined periods exhibits notable volatility and deteriorating profitability metrics, with adjusted figures reflecting the impact of deferred income tax adjustments.

Net Profit Margin

The reported net profit margin shows a declining trend, starting from a positive 5.61% in early 2017 to a negative 7.11% by early 2022. The adjusted net profit margin follows a similar pattern, slightly higher than the reported initially but dipping into negative territory earlier and reaching -5.49% in 2022. This indicates growing challenges in maintaining profitability over the years, particularly worsening from 2019 onward, with a slight alleviation observed when adjustments for deferred taxes are applied.

Total Asset Turnover

The total asset turnover ratio remains relatively stable across the periods, with reported values fluctuating mildly between 1.43 and 1.83. Adjusted turnover ratios mirror this pattern closely, maintaining slightly higher values. This suggests that the company's efficiency in utilizing its assets to generate sales has been relatively consistent, despite the negative profit margins.

Financial Leverage

Financial leverage exhibits a sharp increase starting in 2020, escalating from around 2.5 in earlier years to extremely elevated levels exceeding 29 by 2022, both in reported and adjusted figures. This indicates a significant rise in the company's reliance on debt or other liabilities relative to equity, potentially increasing financial risk and volatility in return measures.

Return on Equity (ROE)

ROE trends diminish substantially over the periods reviewed. Reported ROE declines from a robust 25.19% in 2017 to a deeply negative -321.35% in 2022. The adjusted ROE shows a similar trajectory but is somewhat more volatile, dropping to -248.06% by 2022. These dramatic negative returns highlight severe losses attributable to shareholders, exacerbated by higher financial leverage and losses.

Return on Assets (ROA)

Both reported and adjusted ROA indicate a transition from modest positive returns to negative performance, with reported ROA falling from 10.01% to -10.91% and adjusted ROA from 10.68% to -8.43% over the analyzed period. The adjusted values, reflecting deferred tax impact, suggest marginally better asset profitability compared to reported figures, but the overall trend denotes a decline in operational efficiency and profitability.

Overall, the data reveals a company facing increasing financial distress, as evidenced by declining profit margins, plummeting returns on equity and assets, and a heightened dependence on financial leverage. Adjustments for deferred income taxes marginally moderate some profitability indicators but do not materially alter the negative trends. The stability in asset turnover implies that operational efficiency in asset utilization has not markedly deteriorated, indicating that the negative financial outcomes are more likely related to margin pressures and capital structure changes rather than core operational performance.

The data reveals a significant deterioration in the company's profitability over the six-year period from 2017 to 2022, based on both reported and adjusted net earnings figures.

Reported Net Earnings (Loss)

Initially, the company reported positive net earnings, peaking at 685,108 thousand US dollars in 2017 and declining to 424,858 thousand US dollars in 2018. Starting in 2019, the earnings turned negative, with losses deepening significantly in the subsequent years, reaching a loss of 559,623 thousand US dollars in 2022. This trend indicates increasing financial challenges and diminishing profitability.

Adjusted Net Earnings (Loss)

The adjusted net earnings, which account for certain tax effects, follow a similar pattern to the reported net earnings but display more pronounced losses from 2019 onward. After a positive result of 709,983 thousand US dollars in 2017 and a steady decline through 2018, adjusted earnings turned negative in 2019 and magnified in 2020 and 2022. The nearly break-even adjusted loss of 1,467 thousand in 2021 represents a temporary improvement amidst the overall downward trend.

Reported Net Profit Margin

The margin indicates declining profitability relative to revenues. Starting at a healthy 5.61% in 2017, it decreased consistently to a negative margin by 2019, reaching its lowest point at -7.11% in 2022. This confirms that losses are not only absolute but also worsening in terms of percentage of sales.

Adjusted Net Profit Margin

Adjusted net profit margin shows a similar trajectory, starting at 5.81% in 2017, decreasing steadily, and turning negative in 2019. The margin dropped to -6.8% in 2020 and improved slightly to nearly zero in 2021 before declining again to -5.49% in 2022. The variation suggests some fluctuations perhaps due to tax adjustments or extraordinary items affecting net profitability.

Overall, the financial data indicates a clear and persistent decline in the company's profitability from 2017 through 2022. Both reported and adjusted figures show a shift from profitability to significant losses, with negative profit margins reflecting these challenges. The temporary improvement in adjusted net earnings and margin in 2021 stands out as an anomaly within a predominantly downward trend.

The analysis focuses on the reported and deferred income tax adjusted financial data for the periods ending February 2017 through February 2022.

Total Assets

Reported total assets exhibit a fluctuating pattern over the six-year period. They increased from approximately 6.85 billion USD in early 2017 to 7.04 billion USD in early 2018, followed by a decline to about 6.57 billion USD in early 2019. There was a significant increase in early 2020, reaching nearly 7.79 billion USD, before a subsequent decrease in the following years, dropping to approximately 5.13 billion USD by early 2022.

Adjusted total assets, which account for deferred income tax adjustments, follow a similar trend. These started at roughly 6.65 billion USD in early 2017, rose slightly by early 2018, then declined through early 2019. There was a pronounced increase in early 2020, reaching around 7.51 billion USD, followed by a decrease to nearly 5.13 billion USD by early 2022. The adjusted values typically remain slightly lower than the reported total assets, reflecting the accounting adjustments.

Total Asset Turnover

Reported total asset turnover ratios demonstrate relative variability, beginning at 1.78 in early 2017 and slightly declining to 1.75 in early 2018. A peak of 1.83 is observed in early 2019. Subsequently, there is a marked decline to 1.43 in early 2020, this ratio remains flat in early 2021, and slightly recovers to 1.53 by early 2022.

Adjusted total asset turnover mirrors the reported figures closely, albeit with marginally higher values. Beginning at 1.84 in early 2017, it slightly decreased in the following year, peaked at 1.86 in early 2019, then dropped to 1.49 in early 2020. A gradual decline to 1.46 occurred in early 2021, followed by a recovery to 1.53 in early 2022.

Overall Trends and Insights

The data reveals a pattern of asset base expansion peaking around early 2020, followed by a notable contraction in subsequent years. Concurrently, total asset turnover ratios peaked in early 2019 and then declined significantly by early 2020, indicating reduced efficiency in asset utilization during this period. The moderate recovery in turnover ratios by early 2022 suggests some improvement in operational efficiency despite the reduction in asset size.

The close alignment between reported and adjusted figures indicates that deferred income tax adjustments have a consistent but limited impact on the reported assets and efficiencies. The decreasing asset base alongside the improving turnover rates towards the end of the period could imply strategic asset management or divestitures to enhance asset utilization.

The analysis of the annual financial data reveals notable fluctuations in key balance sheet metrics over the reported periods. Total assets, both reported and adjusted, exhibit a peak in the fiscal year ending February 29, 2020, followed by a consistent decline in the two subsequent years. Specifically, reported total assets increased from approximately 6.85 billion USD in 2017 to nearly 7.79 billion USD in 2020, then dropped significantly to about 5.13 billion USD in 2022. Adjusted total assets mirror this trend closely, with a slight deviation in 2020 but ending at the same level as the reported figure in 2022.

Shareholders' equity demonstrates a pronounced downward trajectory across the entire timeframe. Reported shareholders’ equity decreased from around 2.72 billion USD in 2017 to just over 174 million USD in 2022, indicating a substantial erosion of equity capital. Adjusted shareholders’ equity follows a similar pattern, with a minor difference in certain years, declining to roughly 174 million USD by 2022. This sharp drop suggests increased liabilities or losses impacting the equity base.

Financial leverage ratios, calculated as total assets divided by shareholders’ equity, reveal a dramatic increase over the period, especially in the most recent year. Reported financial leverage rose from approximately 2.52 in 2017 to an extreme level of 29.46 in 2022. The adjusted financial leverage ratio corroborates this trend, moving from 2.64 to 29.44 during the same timeframe. Elevated leverage indicates a substantial reliance on debt financing relative to equity, which may signal heightened financial risk or distress.

Overall, the data depict a company experiencing contraction in asset base and equity, accompanied by a significant escalation in leverage. The peak in assets seen in 2020 was followed by rapid deterioration afterward, while equity eroded consistently. The leverage ratios confirm increasing financial risk exposure distinctively in the last reported year, potentially reflecting strategic or operational challenges impacting the financial stability.

Total Assets

Increased until 2020, then declined sharply by 2022.

Shareholders’ Equity

Steady decline throughout, with a steep drop especially in 2021 and 2022.

Financial Leverage

Gradually increased over time, surging to very high levels in the last year.

Adjusted vs. Reported Figures

Adjusted values generally track reported values closely, indicating consistent treatment of tax adjustments.

The financial data reveals significant fluctuations in earnings, equity, and return on equity (ROE) over the six-year period. The overall trend highlights a deteriorating financial performance accompanied by declining equity levels and increasingly negative profitability measures.

Reported Net Earnings (Loss)

Initially, reported net earnings showed positive values, with $685 million in 2017 and $425 million in 2018. However, a sharp decline occurred starting in 2019, resulting in losses of $137 million, which substantially worsened to a loss of $614 million in 2020. Although the loss was somewhat less severe at $151 million in 2021, it again increased significantly to $560 million in 2022.

Adjusted Net Earnings (Loss)

A similar pattern is observed in the adjusted net earnings data. Positive earnings of approximately $710 million and $600 million were recorded in 2017 and 2018, respectively. This shifted to negative adjusted earnings of $241 million in 2019 and further deteriorated to a loss of $759 million in 2020. The loss was markedly reduced to near-breakeven levels (-$1.5 million) in 2021 but then returned to a substantial loss of $432 million in 2022.

Reported Shareholders’ Equity

Reported equity peaked in 2018 at approximately $2.89 billion but displayed a consistent downward trajectory subsequently. By 2020, equity declined to $1.76 billion, continuing to fall to $1.28 billion in 2021, and sharply dropping to $174 million in 2022, indicating significant erosion of the company’s net asset base.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity follows a similar declining trend, beginning near $2.52 billion in 2017 and slightly decreasing to $2.88 billion in 2018. From 2019 onwards, a steady decrease ensued, with equity falling to about $1.49 billion in 2020, $1.15 billion in 2021, and reaching $174 thousand in 2022, reflecting a substantial reduction in equity after adjustment.

Reported Return on Equity (ROE)

Reported ROE exhibited a strong positive performance in 2017 (25.19%) but declined to 14.71% in 2018. From 2019 onward, it turned negative, with a negative 5.36% in 2019 and worsening to an extremely negative -34.78% in 2020. The trend continued downward with -11.81% in 2021 and an extraordinary decline to -321.35% in 2022, indicative of significant inefficiency and losses relative to equity.

Adjusted Return on Equity (ROE)

Adjusted ROE mirrors the reported ROE trajectory but with even more pronounced negative values. Positive adjusted ROE of 28.13% and 20.85% were present in 2017 and 2018, respectively, before downturns to -9.87% in 2019 and sharply to -51.02% in 2020. The company nearly stabilized near zero (-0.13%) in 2021 but experienced a severe drop to -248.06% in 2022. This reinforces the conclusion of worsening profitability in relation to the adjusted equity base.

In summary, the data clearly reflects a consistent pattern of deteriorating financial health over the period analyzed. The transition from positive to significantly negative net earnings and ROE starting in 2019 coincides with steep declines in both reported and adjusted shareholders’ equity. This suggests sustained operational challenges and a diminished equity cushion, leading to amplified losses relative to the company’s net worth, especially pronounced in the final two years of the data set.

The analysis of the financial data over the six-year period reveals several notable trends in the company's reported and adjusted net earnings, total assets, and return on assets (ROA).

Net Earnings (Loss)

Reported net earnings experienced a significant decline from a positive figure of approximately $685 million in early 2017 to a substantial loss of roughly $560 million by early 2022. The adjusted net earnings followed a similar trajectory, starting at around $710 million in 2017, declining steadily, and culminating in a loss of approximately $432 million in 2022. Notably, the adjusted net earnings show deeper losses in some years compared to reported figures, particularly in 2019 and 2020.

Total Assets

Reported total assets demonstrated an inconsistent pattern, initially rising from approximately $6.85 billion in 2017 to a peak of about $7.79 billion in 2020, before declining sharply to roughly $5.13 billion by 2022. Adjusted total assets mirrored this trajectory, with a peak in 2020 followed by a significant reduction through 2022. The decline in assets after 2020 suggests possible asset disposals, impairments, or restructuring activities.

Return on Assets (ROA)

The reported ROA showed a declining trend over the period, starting with a healthy 10.01% in 2017 and turning negative from 2019 onwards, reaching -10.91% by 2022. The adjusted ROA similarly declined, starting from 10.68% in 2017 and worsening to -8.43% in 2022, with a notable sharp drop in 2020. The adjusted ROA remains slightly better than the reported ROA in the most recent year but both indicate persistent profitability issues relative to asset base.

Overall, the data indicates a pronounced deterioration in the company's profitability and asset base over the observed timeframe, with losses becoming substantial and asset reductions significant post-2020. The adjusted figures reflect a more conservative view of the financial position, capturing deeper operational challenges beginning in 2019 and intensifying through 2022.