Comcast Corp. (NASDAQ:CMCSA)

Current Expense Trend

The current income tax expense fluctuated significantly over the five-year period. Starting at $3,914 million in 2020, it declined to $3,367 million in 2021, then sharply increased to $5,193 million in 2022 and peaked at $8,110 million in 2023. In 2024, the current expense dropped markedly to $3,698 million, indicating a substantial reversal from the prior year's peak.

Deferred Expense (Benefit) Trend

Deferred income tax expense showed volatile behavior with alternating signs, indicating periods of both expense and benefit. In 2020, it recorded a benefit of $550 million (negative expense), then swung to an expense of $1,892 million in 2021. This was followed by another benefit in 2022 at $834 million, a larger benefit of $2,739 million in 2023, and a continued benefit, though smaller at $902 million, in 2024. This pattern suggests active tax planning or timing differences affecting deferred taxes over the period.

Total Income Tax Expense Trend

The total income tax expense, which combines current and deferred amounts, displayed fluctuations but remained elevated throughout the years. It rose from $3,364 million in 2020 to a high of $5,259 million in 2021, then decreased to $4,359 million in 2022. The expense increased again to $5,371 million in 2023 before dropping to $2,796 million in 2024. The reduction in 2024 indicates either lower taxable income, changes in tax laws, or adjustments in deferred tax positions.

Insights

The data reflect a dynamic tax expense profile, with substantial variability in both current and deferred components, likely influenced by fluctuations in earnings, tax planning strategies, legislative changes, or recognition of deferred tax assets and liabilities. The alternating deferred tax expenses suggest that timing differences between book and tax income heavily impact reported income tax expense. The peak in current tax expense in 2023 and subsequent drop in 2024 may indicate one-time events or changes in taxable income.

The analysis of the tax rate metrics over the five-year period reveals notable fluctuations in the effective income tax rate, despite the federal statutory tax rate remaining constant at 21% throughout. This discrepancy indicates varying impacts of tax strategies, deductions, or income sources on the overall tax burden.

Federal statutory tax rate

The federal statutory tax rate maintained a steady level at 21% for all years under review, indicating no changes in the structural tax legislation affecting the company during this time horizon.

Effective income tax rate

The effective income tax rate exhibited significant volatility over the period. It began at 23.92% in 2020 and increased to 27.54% in 2021, suggesting a higher tax burden than the statutory rate, potentially due to reduced deductions or increased taxable income. In 2022, the effective rate surged markedly to 46.95%, more than double the statutory rate, which could indicate a one-time tax event, reduced tax credits, or the recognition of deferred taxes.

Following this peak, the effective tax rate sharply declined to 26.23% in 2023, aligning closer to the earlier period’s trend but still above the statutory rate. The most recent data for 2024 reveals a further substantial decrease to 14.97%, falling below the statutory rate, which could reflect the implementation of more favorable tax strategies, increased tax credits, or shifts in income composition leading to lower taxable income.

Overall, the effective tax rate trend suggests variability in the company’s tax expenses relative to statutory norms, pointing to potential influences such as tax planning activities, earnings mix changes, or extraordinary tax items impacting the company’s net tax obligations each year.

Net operating loss and other loss carryforwards

This item has shown a consistent upward trend over the five-year period, increasing from 2,609 million USD in 2020 to 4,415 million USD in 2024. The steady rise suggests growing accumulated losses or similar tax attributes available for future tax relief.

Advance on sale of investment

The data for this category is missing for the first three years, but records a notable amount of 2,367 million USD in 2023 and slightly increases to 2,437 million USD in 2024, indicating recent transactions or agreements contributing to this advance.

Nondeductible accruals and other

This category remained relatively stable at around 3,200 to 3,250 million USD from 2020 to 2022, before increasing substantially to 4,100 million USD in 2023 and slightly more to 4,232 million USD in 2024. The rise may reflect increased accounting accruals or expenses not deductible for tax purposes.

Deferred tax assets, gross

There is a significant upward trend here, with an increase from 5,862 million USD in 2020 to 11,084 million USD in 2024. The largest jump occurred between 2022 and 2023, which aligns with the increases in nondeductible accruals and advance on sale of investment, indicating growth in total tax assets before valuation considerations.

Valuation allowance

The valuation allowance has increased negatively from -2,312 million USD in 2020 to -4,498 million USD in 2024, reflecting an increase in the amount of deferred tax assets considered less likely to be realized. This rising allowance partially offsets the increasing gross deferred tax assets, suggesting cautious recognition of deferred tax benefits.

Deferred tax assets, net

This net figure fluctuated slightly downward from 3,550 million USD in 2020 to 3,240 million USD in 2022, then surged to 6,318 million USD in 2023 and 6,586 million USD in 2024. The increase in the last two years indicates a significant improvement in realizable deferred tax assets, possibly due to enhanced earnings outlook or tax planning.

Property and equipment and intangible assets

This asset balance is negative and shows a steady decrease in magnitude from -29,829 million USD in 2020 to -28,672 million USD in 2024. The declining negative values suggest ongoing asset disposals or depreciation, reducing the net carrying amount over time.

Investments

Investments are recorded as negative values which vary over the years, starting at -405 million USD in 2020, worsening to -1,002 million USD in 2023, and slightly improving to -934 million USD in 2024. The fluctuations may reflect changes in valuation, impairment, or disposal of investment assets.

Debt

Debt levels are negative and overall increase in liabilities, moving from -680 million USD in 2020 to -2,055 million USD in 2024, with a significant increase in 2021. This indicates a growing debt burden over the period.

Foreign subsidiaries and undistributed foreign earnings

Negative values remain relatively low and stable, slightly improving from -468 million USD in 2020 to -43 million USD in 2024. The reduction in magnitude suggests decreasing undistributed foreign earnings or repatriation activities.

Deferred tax liabilities

Deferred tax liabilities show minor fluctuations, ranging from -31,382 million USD in 2020 to -31,704 million USD in 2024. The liability remained relatively stable, with slight decreases and increases, indicating consistent future tax obligations.

Net deferred tax asset (liability)

This net liability position lessened somewhat from -27,832 million USD in 2020 to -25,118 million USD in 2024, showing a gradual reduction in net deferred tax obligations. This trend suggests a moderate improvement in the balance between deferred tax assets and liabilities.

Deferred Tax Assets

The value of deferred tax assets exhibits a fluctuating trend over the analyzed five-year period. Starting at 219 million US dollars at the end of 2020, the amount increases to 282 million in 2021, marking a significant rise. However, in subsequent years, it declines sharply to 205 million by the end of 2022 and continues to decrease further to stabilize at 109 million in both 2023 and 2024. This pattern indicates a reduction in the expected future tax benefits represented by deferred tax assets after the peak in 2021.

Deferred Tax Liabilities

The deferred tax liabilities show a steady downward trend throughout the period. Beginning at 28,051 million US dollars at the end of 2020, the liabilities increase slightly to 30,041 million in 2021, representing the highest level within the period. From 2021 onwards, there is a consistent decline year over year, reducing to 28,714 million in 2022, then dropping more markedly to 26,003 million in 2023 and further down to 25,227 million by the end of 2024. This continuous reduction suggests a gradual decrease in the company's future tax obligations recognized as deferred liabilities.

Overall Insights

The data reveals contrasting behaviors between deferred tax assets and liabilities. Deferred tax assets peaked early and then diminished substantially, settling at less than half their 2021 peak by 2023 and 2024. In contrast, deferred tax liabilities peaked in 2021 but thereafter showed a steady and sustained decrease through the end of the analysis period. The reduction in deferred tax liabilities coupled with the sharp downturn in deferred tax assets after 2021 may impact the company's future tax position and tax expense recognition.

The financial data reveals several key trends in assets, liabilities, shareholders’ equity, and net income over the five-year period.

Total Assets

Both reported and adjusted total assets exhibit a slight overall decline from 2020 to 2022, dropping from approximately $274 billion to about $257 billion. Subsequently, assets recover somewhat through 2023 and 2024, reaching close to $266 billion. The adjustments made to total assets are consistently marginal, indicating minor reclassifications or valuation changes rather than significant differences in asset base measurement.

Total Liabilities

Reported total liabilities show a gradual decrease from around $181 billion in 2020 to $175 billion in 2022, followed by a rise back above $179 billion in 2024. Adjusted total liabilities follow a similar pattern but are significantly lower than the reported figures throughout the period, starting at approximately $153 billion and rising to around $155 billion by 2024. This divergence suggests that the adjustments reduce liabilities, possibly through reclassification or deferred tax considerations.

Shareholders’ Equity

The reported shareholders’ equity peaks in 2021 at roughly $96 billion but then declines sharply in 2022 to approximately $81 billion before demonstrating modest increases in 2023 and 2024 to near $86 billion. Adjusted shareholders’ equity consistently reports higher values than the reported figures, with a peak in 2021 at about $126 billion. Following 2021, adjusted equity also declines in 2022 and remains relatively stable thereafter. The adjustments appear to add significant equity value, suggesting the inclusion of deferred tax benefits or other non-reported equity elements.

Net Income Attributable to Comcast Corporation

Reported net income experienced a strong increase from 2020 to 2021, rising from approximately $10.5 billion to $14.2 billion, then sharply declined to about $5.4 billion in 2022. It rebounded significantly in 2023 and 2024, reaching $15.4 billion and $16.2 billion, respectively. Adjusted net income, however, shows a higher figure than reported income in 2021 but records a more pronounced decline in 2022 to about $4.5 billion. In 2023 and 2024, adjusted net income increases, although it remains somewhat below the reported figures in the same years. These patterns suggest the presence of volatile components or non-recurring tax-related adjustments impacting reported profitability.

Overall, the data portrays a period of fluctuating financial performance characterized by an asset base that moderately contracts and then recovers, liabilities decreasing and then increasing, and shareholders’ equity and net income showing variability with notable adjustments that influence the scale of reported figures. The adjusted financial data generally presents a more conservative view of liabilities and a higher baseline for equity but more variability in adjusted earnings, indicating the significance of tax and accounting adjustments in the company's reported financial results.

The financial data reveals several notable trends in profitability, asset efficiency, leverage, and returns over the five-year period.

Net Profit Margin

The reported net profit margin displayed considerable fluctuation, peaking at 12.17% in 2021 before a sharp decline to 4.42% in 2022. It then recovered strongly in the subsequent two years, reaching 13.09% by 2024. The adjusted net profit margin exhibited a similar pattern but showed even greater volatility, dipping to 3.74% in 2022 before rising to 12.36% in 2024. This suggests that non-recurring items or tax effects significantly impacted net profitability adjustments in 2022, but were followed by a robust recovery.

Total Asset Turnover

Both reported and adjusted total asset turnover improved from 0.38 in 2020 to 0.47 in 2022, indicating enhanced asset utilization to generate revenue. This improvement plateaued, with a slight decrease to 0.46 in the last two years, showing steady but stabilized asset efficiency.

Financial Leverage

Reported financial leverage experienced some variability, dropping from 3.03 in 2020 to 2.87 in 2021, then increasing again to a peak of 3.20 in 2023 before a slight reduction to 3.11 in 2024. The adjusted figure was consistently lower than the reported leverage, suggesting some adjustments reducing effective leverage, with a modest upward trend from 2.19 in 2021 to 2.44 in 2023 and a small decline to 2.40 in 2024. This indicates a somewhat leveraged capital structure with minor fluctuations in debt usage.

Return on Equity (ROE)

Reported ROE showed a strong recovery trajectory after a dip in 2022, climbing from 6.63% that year to 18.92% by 2024, surpassing prior levels. Adjusted ROE followed a similar path but remained consistently lower, with a minimum of 4.14% in 2022 and a subsequent rise to 13.81% in 2024. These trends suggest that while reported earnings significantly increased equity returns, adjustments for tax and other factors moderate this view, highlighting the impact of non-recurring components or deferred taxes.

Return on Assets (ROA)

Reported ROA declined sharply to 2.09% in 2022 from 5.13% in 2021 but then recovered to 6.08% by 2024. Adjusted ROA followed the same trajectory but remained slightly lower, highlighting the impact of adjustments that reduced asset profitability, particularly in 2022. The recovery in ROA corresponds with improved asset utilization and profit margins.

In summary, this profile reflects a period of significant volatility around 2022, with marked declines in profitability and returns, likely linked to exceptional items. The recovery phase starting in 2023 is characterized by improved margins, steady asset turnover, and increased returns, albeit with adjusted measures consistently showing a more conservative performance assessment. Financial leverage remains moderately high but stable, suggesting maintained reliance on debt financing.

Net Income Trends

The reported net income attributable to the company experienced a significant increase from 10,534 million USD in 2020 to 14,159 million USD in 2021. However, it sharply declined to 5,370 million USD in 2022 before rebounding strongly to 15,388 million USD in 2023 and further rising to 16,192 million USD in 2024. The adjusted net income followed a broadly similar pattern, increasing from 9,984 million USD in 2020 to a peak of 16,051 million USD in 2021, dropping to 4,536 million USD in 2022, then recovering to 12,649 million USD in 2023 and increasing again to 15,290 million USD in 2024.

Profit Margin Analysis

The reported net profit margin showed an upward trend overall, starting at 10.17% in 2020, rising to 12.17% in 2021, then falling markedly to 4.42% in 2022. This was followed by a recovery to 12.66% in 2023 and a slight increase to 13.09% in 2024. Adjusted net profit margin exhibited similar dynamics, peaking at 13.79% in 2021 before deteriorating to 3.74% in 2022. Subsequent recovery was observed with margins increasing to 10.4% in 2023 and further improvement to 12.36% in 2024.

Overall Observations

The data reveals a pronounced volatility in both reported and adjusted net incomes and profit margins, with a significant decline in 2022 followed by a robust recovery in the following years. This pattern suggests the presence of a major transitional or disruptive event impacting profitability in 2022. Despite this dip, the company demonstrated resilience, as reflected in the recovery and growth in both net income and profit margins through 2023 and 2024. Adjusted figures consistently remain slightly below reported figures in terms of net income but show higher margins in earlier years, indicating the adjustments primarily affect income magnitude rather than profitability ratios.

Asset Values

The reported total assets showed a gradual increase from 273,869 million US dollars in 2020 to 275,905 million in 2021. This was followed by a noticeable decline in 2022 to 257,275 million. Subsequently, the asset base slightly recovered in 2023 and 2024, reaching 264,811 million and 266,211 million respectively. The adjusted total assets mirrored this pattern closely, suggesting consistency between reported and adjusted figures.

Total Asset Turnover

The reported total asset turnover ratio exhibited an increasing trend from 0.38 in 2020 to a peak of 0.47 in 2022, indicating improved efficiency in asset utilization up to that point. However, the ratio slightly decreased and stabilized at 0.46 in both 2023 and 2024. The adjusted total asset turnover ratio followed the exact same trend, reinforcing the reliability of the adjusted metrics in reflecting operational effectiveness.

Overall Analysis

The data suggests that despite fluctuations in asset values, the company's ability to generate revenue from its asset base improved notably until 2022 and then stabilized thereafter. The alignment between reported and adjusted data indicates minimal impact from deferred income tax adjustments on the primary financial metrics assessed.

The data reveals several notable trends in the financial position and leverage of the company over the five-year period from 2020 to 2024. Both the reported and adjusted total assets demonstrate a slight decline from 2021 to 2022, followed by a gradual recovery through to 2024. This pattern suggests a period of asset reduction or restructuring in 2022, with gradual asset base rebuilding thereafter.

Shareholders’ equity exhibits differing trajectories depending on whether reported or adjusted figures are considered. Reported shareholders’ equity peaked in 2021 before experiencing a significant decrease in 2022, with only a modest increase in subsequent years. Meanwhile, the adjusted equity figures are consistently higher than reported values and show a similar peak in 2021, but with a less pronounced decline in 2022 and a more stable level thereafter. This contrast indicates that adjustments—possibly related to deferred tax considerations—have a material impact on equity valuation, presenting a more conservative and stable financial equity position over time.

Financial leverage ratios also differ markedly between reported and adjusted measures. Reported financial leverage remained close to or above 3.0 across the period, with a dip in 2021 followed by an increase to its highest level in 2023 before declining slightly in 2024. In contrast, adjusted financial leverage ratios are substantially lower, ranging between approximately 2.19 and 2.44, showing a more moderate upward trend after 2021. This lower leverage on an adjusted basis suggests the company’s financial obligations relative to equity may be less intensive than reported figures imply, potentially reflecting a more favorable risk profile when deferred tax adjustments are considered.

Overall, the adjustment for annual reported and deferred income taxes appears to moderate observed fluctuations in equity and leverage, providing a steadier perspective on the company’s financial stability and solvency. The trends indicate a cautious but recovering asset base after 2022, with financial leverage reflecting risk management measures more clearly under adjusted metrics.

Total Assets

Slight decline in 2022 followed by gradual recovery through 2024 in both reported and adjusted figures.

Shareholders’ Equity

Reported equity peaks in 2021 with a sharp decline in 2022, slight recovery thereafter; adjusted equity is consistently higher and more stable across periods.

Financial Leverage

Reported leverage remains above 3.0 except for a dip in 2021; adjusted leverage substantially lower and exhibits moderate increase post-2021, indicating lower relative financial risk when adjusted.

Impact of Adjustments

Adjustments reduce volatility in equity and leverage metrics, suggesting deferred income tax considerations significantly affect the financial position interpretation.

Net Income Trends

The reported net income attributable to Comcast Corporation experienced fluctuations over the observed periods. It increased from $10,534 million in 2020 to $14,159 million in 2021, followed by a significant decline to $5,370 million in 2022. Subsequently, it rose sharply to $15,388 million in 2023 and slightly increased to $16,192 million in 2024. The adjusted net income followed a generally similar pattern but with lower absolute values relative to reported net income, peaking at $16,051 million in 2021, dropping markedly to $4,536 million in 2022, and then recovering to $15,290 million by 2024.

Shareholders’ Equity Movements

Reported total shareholders’ equity showed a steady rise from $90,323 million in 2020 to $96,092 million in 2021, then decreased to $80,943 million in 2022. From 2022 onwards, it exhibited modest growth, reaching $85,560 million by 2024. In contrast, adjusted total shareholders’ equity was consistently higher than the reported figures across all periods. It grew from $118,155 million in 2020 to $125,851 million in 2021, then declined to $109,452 million in 2022, followed by slight decreases and increases to $110,678 million in 2024, reflecting less volatility relative to the reported equity.

Return on Equity (ROE) Analysis

The reported ROE showed a pattern closely aligned with net income trends. It increased from 11.66% in 2020 to 14.73% in 2021, dropped significantly to 6.63% in 2022, and then rebounded strongly to 18.61% in 2023, with a small increase to 18.92% in 2024. The adjusted ROE followed the same trajectory but with consistently lower percentages, starting at 8.45% in 2020, reaching a peak of 12.75% in 2021, falling to 4.14% in 2022, and then rising to 13.81% in 2024. This indicates that the adjustment for deferred income tax had a dampening effect on profitability ratios.

Overall Observations

The data indicates a cyclical pattern with a notable dip in both income and equity measures in 2022, followed by a recovery in subsequent years. The adjustments for deferred income tax result in a conservative portrayal of net income, equity, and profitability, which smoothens some fluctuations observed in the reported data. The combination of rising reported net income and improving ROE in the most recent periods suggests strengthening profitability and efficient utilization of equity capital. Meanwhile, equity figures reflect a return to growth after a temporary decline, supporting the company’s financial stability.

The financial data over the five-year period reveals notable fluctuations in income and asset values, with indications of recovery and growth after a significant decline.

Net Income Trends

The reported net income attributable to the corporation shows an overall increasing trend, rising from 10,534 million US dollars in 2020 to 16,192 million in 2024. However, this progression includes a pronounced dip in 2022 where reported net income dropped sharply to 5,370 million, before rebounding substantially in subsequent years.

The adjusted net income follows a somewhat similar pattern, starting at 9,984 million in 2020, peaking at 16,051 million in 2021, then declining steeply to 4,536 million in 2022. Recovery is observed as the figure climbs again to 15,290 million in 2024, though the values remain marginally below reported net income levels towards the end of the timeframe.

Total Assets

Both reported and adjusted total assets exhibit relatively stable values with slight fluctuations. Starting near 274 billion US dollars in 2020, asset values slightly decreased to approximately 257 billion in 2022, reflecting some contraction. The figures then indicate a modest recovery, stabilizing around 266 billion by 2024. The close alignment between reported and adjusted asset values suggests limited impact of tax adjustments on asset valuation.

Return on Assets (ROA)

The reported ROA indicates variable performance, with a low of 2.09% in 2022 amid lowered income and asset base, followed by an upward trend reaching 6.08% in 2024, reflecting improved profitability and efficient asset utilization.

Adjusted ROA figures show a similar trajectory but with slightly lower percentage points compared to the reported data. After peaking at 5.82% in 2021, the adjusted ROA dropped to 1.76% in 2022, recovering to 5.75% by 2024. The alignment of adjusted ROA trends with reported figures underscores the significance of underlying performance over tax effects.

Overall, the data portrays a period marked by a temporary decline in profitability and asset values in 2022, followed by a strong recovery in subsequent years. The close correspondence between reported and adjusted figures indicates that deferred income tax adjustments have a moderated impact on the financial performance and position during this period.