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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Corning Inc., adjustment to net income attributable to Corning Incorporated
US$ in millions
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).
The financial data reflects significant volatility in the net income attributable to Corning Incorporated over the five-year period from 2019 to 2023.
- Net Income Trends
- The reported net income started at $960 million in 2019, then fell sharply to $512 million in 2020, representing a decrease of approximately 46.7%. This could potentially indicate challenges during that year, possibly influenced by external factors impacting the business.
- In 2021, there was a substantial recovery and growth in net income, reaching $1,906 million. This more than tripled the 2020 figure and nearly doubled the 2019 income, signaling a strong turnaround.
- However, in 2022, net income decreased to $1,316 million, a decline of about 31% from the previous year, though still significantly higher than the 2019 and 2020 levels.
- The 2023 figure shows another marked decline to $581 million, which is less than half the prior year's net income and close to the level seen in 2020, indicating another period of decreased profitability.
- Adjusted Net Income
- The adjusted net income figures mirror the reported net income values exactly across all years, suggesting that the adjustments made do not materially affect the overall profitability figures or that adjustments may be minimal or standardized.
Overall, the data reveals a pattern of considerable fluctuations in profitability during the examined period. The peak in 2021 stands out as an anomalous high point in net income, followed by a decline over the subsequent two years. This pattern suggests external or internal factors leading to instability in earnings. The alignment of reported and adjusted net income indicates consistency in measurement or limited adjustments affecting net income reporting.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Corning Inc., adjusted profitability ratios
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).
- Net Profit Margin
- The net profit margin exhibited notable fluctuations over the five-year period. It started at 8.35% in 2019, declined significantly to 4.53% in 2020, peaked sharply at 13.54% in 2021, then decreased to 9.27% in 2022, and dropped again to 4.62% in 2023. This pattern reflects considerable variability in profitability with a strong upsurge in 2021 followed by a downward trend in subsequent years.
- Return on Equity (ROE)
- The ROE data mirrors the trend observed in net profit margin. It began at 7.44% in 2019, decreased to 3.86% in 2020, climbed substantially to 15.45% in 2021, declined to 10.96% in 2022, and finally fell to 5.03% in 2023. The peak in 2021 suggests a period of enhanced effectiveness in generating returns for equity holders, which was not sustained in the following years.
- Return on Assets (ROA)
- ROA also followed a similar trajectory, starting at a modest 3.32% in 2019, declining to 1.66% in 2020, experiencing a significant increase to 6.32% in 2021, falling again to 4.46% in 2022, and dropping further to 2.04% in 2023. This trend indicates variations in asset utilization efficiency over the period, with a peak in 2021 and a weakening performance thereafter.
- Comparison of Reported and Adjusted Figures
- The reported and adjusted values for all three metrics—net profit margin, ROE, and ROA—are consistent throughout the period, indicating no adjustments significantly altered these performance measures. This consistency suggests transparency in reporting and stability in the adjustment process.
- Overall Insights
- The data reveals a cycle of declining profitability and returns in 2020, a strong recovery and peak performance in 2021, followed by a gradual erosion of profitability and efficiency through 2022 and 2023. The peak in 2021 represents an outlier year with markedly better financial results, while the years following show challenges in maintaining this higher performance level. The consistency between reported and adjusted figures indicates reliability in the presented data.
Corning Inc., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
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).
2023 Calculations
1 Net profit margin = 100 × Net income attributable to Corning Incorporated ÷ Net sales
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income attributable to Corning Incorporated ÷ Net sales
= 100 × ÷ =
The financial data over the five-year period from 2019 to 2023 reveals notable fluctuations in both reported and adjusted net income attributable to the company, as well as corresponding net profit margins. The figures for reported and adjusted net income are identical across all years, indicating no differences due to adjustments in this dataset.
- Net Income Trends
- The reported net income started at 960 million US dollars in 2019 and experienced a significant decline in 2020, falling to 512 million US dollars. This decline may reflect adverse impacts possibly related to external factors during that year. However, in 2021, net income rebounded strongly to 1,906 million US dollars, representing the highest figure in the five-year span. Following this peak, the net income decreased again in 2022 to 1,316 million US dollars and continued to decline sharply in 2023, reaching 581 million US dollars. Overall, net income exhibits a volatile pattern with a major recovery in 2021 before tapering off in subsequent years.
- Net Profit Margin Analysis
- The net profit margin exhibits a pattern consistent with the net income trends. Starting at 8.35% in 2019, the margin dropped to 4.53% in 2020, highlighting reduced profitability. The margin then surged to 13.54% in 2021, reflecting the strong income recovery and improved efficiency or revenue quality during that year. Subsequently, the margin declined to 9.27% in 2022 and further decreased to 4.62% in 2023. This suggests that despite the rebound in income in 2021, profitability weakened considerably towards the end of the period.
In summary, the company exhibited significant volatility in income and profitability between 2019 and 2023. After a downturn in 2020, there was a robust recovery in 2021, followed by a consistent decline in both net income and net profit margin through 2023. This pattern indicates potential challenges in maintaining earnings growth and profitability after the 2021 peak.
Adjusted Return on Equity (ROE)
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).
2023 Calculations
1 ROE = 100 × Net income attributable to Corning Incorporated ÷ Total Corning Incorporated shareholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income attributable to Corning Incorporated ÷ Total Corning Incorporated shareholders’ equity
= 100 × ÷ =
The financial data reveals several notable trends in Corning Inc.'s profitability and return on equity over the five-year period from 2019 to 2023.
- Net Income
- The reported net income attributable to the company showed a significant fluctuation. Starting at 960 million USD in 2019, net income more than halved in 2020 to 512 million USD. This sharp decline was followed by a strong recovery in 2021, where net income peaked at 1.906 billion USD, indicating a substantial increase in profitability. However, in the subsequent years, net income decreased again, dropping to 1.316 billion USD in 2022 and further declining to 581 million USD in 2023. Overall, the trend exhibits volatility with a peak in 2021 and a marked decline thereafter.
- Adjusted Net Income
- The adjusted net income closely mirrors the reported net income figures throughout the entire period, suggesting minimal or no significant adjustments affecting net profitability. This alignment indicates consistency between reported and operational earnings after adjustments.
- Return on Equity (ROE)
- The reported ROE experienced a similar pattern of movement as net income. It started at 7.44% in 2019, declined to its lowest point of 3.86% in 2020, then sharply increased to a peak of 15.45% in 2021. After this peak, ROE declined to 10.96% in 2022 and further down to 5.03% in 2023. This trend mirrors the fluctuations in net income and indicates that the company’s efficiency in generating returns from shareholders’ equity was highest in 2021, with diminished performance noted in subsequent years.
- Adjusted Return on Equity
- The adjusted ROE numbers are identical to the reported ROE, further reinforcing the lack of substantial adjustments altering the interpretation of return on equity performance. This consistency strengthens the reliability of the ROE trends derived from reported figures.
In summary, the company experienced significant volatility in profitability and return on equity, with a pronounced peak in 2021 followed by a considerable decline over the next two years. The alignment of adjusted and reported figures suggests that these trends reflect the core operational performance without material distortions from accounting adjustments.
Adjusted Return on Assets (ROA)
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).
2023 Calculations
1 ROA = 100 × Net income attributable to Corning Incorporated ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income attributable to Corning Incorporated ÷ Total assets
= 100 × ÷ =
- Net Income
- The net income attributable to Corning Incorporated experienced significant fluctuations over the five-year period. Starting at 960 million USD in 2019, it sharply decreased to 512 million USD in 2020. Subsequently, there was a substantial recovery and growth to 1906 million USD in 2021, followed by a decline to 1316 million USD in 2022 and further down to 581 million USD in 2023. This trend reflects notable volatility, with peak profitability in 2021 and a marked reduction in subsequent years.
- Return on Assets (ROA)
- The reported ROA mirrored the pattern of net income, beginning at 3.32% in 2019, falling to 1.66% in 2020, then rising sharply to a high of 6.32% in 2021. The ROA declined again to 4.46% in 2022 and further decreased to 2.04% in 2023. This indicates that asset efficiency and profitability peaked in 2021 but declined significantly in the following two years, suggesting a decrease in asset utilization effectiveness or profitability relative to assets in the most recent years.
- Adjusted Financial Measures
- The adjusted net income and adjusted ROA figures align exactly with the reported numbers throughout the period analyzed, indicating no adjustments affected these key profitability metrics. This suggests that the reported figures accurately reflect the underlying performance without significant non-recurring items or adjustments.