Stock Analysis on Net
Stock Analysis on Net

Celgene Corp. (NASDAQ:CELG)

This company has been moved to the archive! The financial data has not been updated since October 31, 2019.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Celgene Corp., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Acquired developed product rights 3,406 3,406 3,406 3,406 3,406
Technology 1,743 483 483 566 334
Licenses 66 66 67 67 67
Other 54 43 43 44 43
Amortizable intangible assets, gross carrying value 5,269 3,998 3,999 4,082 3,849
Accumulated amortization (2,887) (2,413) (2,078) (1,695) (1,410)
Amortizable intangible assets, net 2,382 1,585 1,921 2,388 2,439
Acquired IPR&D product rights 13,831 6,851 8,471 8,471 1,629
Non-amortized intangible assets 13,831 6,851 8,471 8,471 1,629
Intangible assets, net 16,213 8,436 10,392 10,858 4,068
Goodwill 8,003 4,866 4,866 4,879 2,191
Intangible assets and goodwill 24,216 13,302 15,258 15,737 6,259

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Item Description The company
Intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Celgene Corp. intangible assets, net decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Celgene Corp. goodwill increased from 2016 to 2017 and from 2017 to 2018.
Intangible assets and goodwill Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Celgene Corp. intangible assets and goodwill decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Adjustments to Financial Statements: Removal of Goodwill

Celgene Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Adjustment to Total Assets
Total assets (as reported) 35,480 30,141 28,086 27,053 17,340
Less: Goodwill 8,003 4,866 4,866 4,879 2,191
Total assets (adjusted) 27,477 25,275 23,220 22,174 15,149
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 6,161 6,921 6,599 5,919 6,525
Less: Goodwill 8,003 4,866 4,866 4,879 2,191
Stockholders’ equity (adjusted) (1,842) 2,055 1,734 1,040 4,334

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Celgene Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Celgene Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Total Asset Turnover
Reported total asset turnover 0.43 0.43 0.40 0.34 0.44
Adjusted total asset turnover 0.56 0.51 0.48 0.41 0.50
Financial Leverage
Reported financial leverage 5.76 4.36 4.26 4.57 2.66
Adjusted financial leverage — 12.30 13.39 21.32 3.50
Return on Equity (ROE)
Reported ROE 65.67% 42.48% 30.29% 27.07% 30.65%
Adjusted ROE — 143.07% 115.33% 154.04% 46.15%
Return on Assets (ROA)
Reported ROA 11.40% 9.75% 7.12% 5.92% 11.53%
Adjusted ROA 14.73% 11.63% 8.61% 7.22% 13.20%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Celgene Corp. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Celgene Corp. adjusted ROA improved from 2016 to 2017 and from 2017 to 2018.

Celgene Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net product sales 15,265 12,973 11,185 9,161 7,564
Total assets 35,480 30,141 28,086 27,053 17,340
Activity Ratio
Total asset turnover1 0.43 0.43 0.40 0.34 0.44
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net product sales 15,265 12,973 11,185 9,161 7,564
Adjusted total assets 27,477 25,275 23,220 22,174 15,149
Activity Ratio
Adjusted total asset turnover2 0.56 0.51 0.48 0.41 0.50

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 Total asset turnover = Net product sales ÷ Total assets
= 15,265 ÷ 35,480 = 0.43

2 Adjusted total asset turnover = Net product sales ÷ Adjusted total assets
= 15,265 ÷ 27,477 = 0.56

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Celgene Corp. adjusted total asset turnover ratio improved from 2016 to 2017 and from 2017 to 2018.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total assets 35,480 30,141 28,086 27,053 17,340
Stockholders’ equity 6,161 6,921 6,599 5,919 6,525
Solvency Ratio
Financial leverage1 5.76 4.36 4.26 4.57 2.66
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 27,477 25,275 23,220 22,174 15,149
Adjusted stockholders’ equity (1,842) 2,055 1,734 1,040 4,334
Solvency Ratio
Adjusted financial leverage2 — 12.30 13.39 21.32 3.50

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 35,480 ÷ 6,161 = 5.76

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 27,477 ÷ -1,842 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income 4,046 2,940 1,999 1,602 2,000
Stockholders’ equity 6,161 6,921 6,599 5,919 6,525
Profitability Ratio
ROE1 65.67% 42.48% 30.29% 27.07% 30.65%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 4,046 2,940 1,999 1,602 2,000
Adjusted stockholders’ equity (1,842) 2,055 1,734 1,040 4,334
Profitability Ratio
Adjusted ROE2 — 143.07% 115.33% 154.04% 46.15%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,046 ÷ 6,161 = 65.67%

2 Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 4,046 ÷ -1,842 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income 4,046 2,940 1,999 1,602 2,000
Total assets 35,480 30,141 28,086 27,053 17,340
Profitability Ratio
ROA1 11.40% 9.75% 7.12% 5.92% 11.53%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 4,046 2,940 1,999 1,602 2,000
Adjusted total assets 27,477 25,275 23,220 22,174 15,149
Profitability Ratio
Adjusted ROA2 14.73% 11.63% 8.61% 7.22% 13.20%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 4,046 ÷ 35,480 = 11.40%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 4,046 ÷ 27,477 = 14.73%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Celgene Corp. adjusted ROA improved from 2016 to 2017 and from 2017 to 2018.