Stock Analysis on Net

Moderna Inc. (NASDAQ:MRNA)

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Moderna Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Operating Assets
Total assets 18,426 25,858 24,669 7,337 1,589
Less: Cash and cash equivalents 2,907 3,205 6,848 2,624 236
Less: Investments 5,697 6,697 3,879 1,984 867
Operating assets 9,822 15,956 13,942 2,729 486
Operating Liabilities
Total liabilities 4,572 6,735 10,524 4,775 415
Less: Financing lease liabilities, current 161 165 24
Less: Financing lease liabilities, non-current 575 912 599 110 39
Operating liabilities 3,997 5,662 9,760 4,641 376
 
Net operating assets1 5,825 10,294 4,182 (1,912) 110
Balance-sheet-based aggregate accruals2 (4,469) 6,112 6,094 (2,023)
Financial Ratio
Balance-sheet-based accruals ratio3 -55.45% 84.44% 536.93%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
AbbVie Inc. -22.39% -14.27% -9.69% 131.82%
Amgen Inc. 57.08% 4.07% 0.70% 3.47%
Bristol-Myers Squibb Co. -7.12% -3.86% -13.40% -13.24%
Danaher Corp. 3.48% -1.55% 16.41% 52.50%
Eli Lilly & Co. 28.84% 11.38% 16.60% 18.42%
Gilead Sciences Inc. 1.04% -2.92% -2.34% 59.36%
Johnson & Johnson -21.13% 19.84% 3.75% 7.76%
Merck & Co. Inc. 3.16% 0.46% 25.14% 15.90%
Pfizer Inc. 30.66% 24.95% -7.11% -14.91%
Regeneron Pharmaceuticals Inc. 1.17% 11.07% 43.54% 16.50%
Thermo Fisher Scientific Inc. 4.97% -1.78% 43.38% 1.98%
Balance-Sheet-Based Accruals Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 6.20% 5.69% 7.13% 20.29%
Balance-Sheet-Based Accruals Ratio, Industry
Health Care 7.31% 2.87% 6.05% 10.43%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Net operating assets = Operating assets – Operating liabilities
= 9,8223,997 = 5,825

2 2023 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2023 – Net operating assets2022
= 5,82510,294 = -4,469

3 2023 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -4,469 ÷ [(5,825 + 10,294) ÷ 2] = -55.45%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Moderna Inc. improved earnings quality from 2022 to 2023.

Cash-Flow-Statement-Based Accruals Ratio

Moderna Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income (loss) (4,714) 8,362 12,202 (747) (514)
Less: Net cash provided by (used in) operating activities (3,118) 4,981 13,620 2,027 (459)
Less: Net cash (used in) provided by investing activities 4,206 (5,176) (8,523) (1,672) (15)
Cash-flow-statement-based aggregate accruals (5,802) 8,557 7,105 (1,102) (40)
Financial Ratio
Cash-flow-statement-based accruals ratio1 -71.99% 118.22% 626.00%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
AbbVie Inc. -24.89% -16.25% -10.28% 44.98%
Amgen Inc. 52.47% 8.81% -12.87% 6.95%
Bristol-Myers Squibb Co. -5.99% -9.10% -12.73% -15.67%
Danaher Corp. 8.20% 1.44% 18.48% 42.90%
Eli Lilly & Co. 28.13% 10.32% 5.30% 11.38%
Gilead Sciences Inc. -0.19% -4.95% -4.86% 20.18%
Johnson & Johnson 13.66% 10.78% 8.23% 17.00%
Merck & Co. Inc. 2.23% 0.61% 29.09% 13.75%
Pfizer Inc. 19.96% 18.46% 13.18% 3.27%
Regeneron Pharmaceuticals Inc. 14.35% 18.61% 49.24% 10.32%
Thermo Fisher Scientific Inc. 3.80% -0.06% 34.69% -0.89%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 8.31% 3.92% 9.39% 11.93%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Health Care 7.75% 3.11% 7.13% 6.55%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -5,802 ÷ [(5,825 + 10,294) ÷ 2] = -71.99%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Moderna Inc. improved earnings quality from 2022 to 2023.