EOG Resources Inc. (NYSE:EOG)

Current Income Tax Expense

The current income tax expense exhibited a fluctuating pattern over the five-year period. Starting at $85,266 thousand in 2015, it declined to $54,387 thousand in 2016, followed by a moderate increase to $65,879 thousand in 2017. However, in 2018 and 2019, the current tax expense turned negative, with values of -$221,190 thousand and -$60,013 thousand respectively, indicating a tax benefit or refund situation during these years.

Deferred Income Tax Expense

The deferred income tax expense showed significant volatility throughout the period. In 2015, there was a substantial negative deferred tax expense (-$2,482,307 thousand), indicating a large deferred tax benefit. This was followed by a considerably smaller negative amount in 2016 (-$515,206 thousand). In 2017, the deferred tax benefit sharply increased again to -$1,987,276 thousand. In 2018 and 2019, the deferred taxes reversed to positive figures, $1,043,148 thousand and $870,370 thousand respectively, signaling deferred tax expense rather than benefit in these latter years.

Overall Income Tax Provision (Benefit)

The total income tax provision (benefit), combining current and deferred components, reflected the trends seen in the individual elements. Large negative values in 2015 (-$2,397,041 thousand), 2016 (-$460,819 thousand), and 2017 (-$1,921,397 thousand) indicate overall income tax benefits during these years. In contrast, 2018 and 2019 show positive provisions of $821,958 thousand and $810,357 thousand respectively, indicating years of net income tax expense.

Summary of Trends

The data reveals a shift from years dominated by significant tax benefits and deferred tax credits (2015-2017) to years characterized by income tax expenses and deferred tax liabilities (2018-2019). This reversal suggests changes in profitability, tax regulations, or timing differences affecting deferred taxes. The negative current tax expenses in 2018 and 2019, coupled with positive deferred tax expenses, imply complex tax-related adjustments during these periods.

Statutory Federal Income Tax Rate

The federal statutory tax rate remained steady at 35% from 2015 through 2017, before decreasing significantly to 21% in both 2018 and 2019. This change reflects a notable reduction in federal tax obligations starting in 2018.

State Income Tax, Net of Federal Benefit

The state income tax as a percentage of income decreased sharply from 1.11% in 2015 to 0.15% in 2016. It then rose to 3.38% in 2017, followed by a decline to 1.12% in 2018 and further to 0.97% in 2019. This indicates variability in state tax impact, with fluctuating net tax benefits over the period.

Income Tax Provision Related to Foreign Operations

This provision was negative at -1.31% and -1.23% in 2015 and 2016, respectively, then less negative at -0.3% in 2017, before becoming positive at 0.51% in 2018 and increasing further to 0.87% in 2019. This trend suggests improving tax effects from foreign operations, shifting from tax benefits to tax expenses.

Income Tax Provision Related to Trinidad Operations

A significant negative impact of -3.71% occurred in 2016. No data is available for other years, indicating either discontinued or immaterial tax effects from this jurisdiction outside that year.

Income Tax Provision Related to United Kingdom Operations

A positive tax provision of 1.78% is reported only in 2017, with no other data available. This single-year data point indicates a one-time or isolated tax impact related to UK operations during that year.

Income Tax Provision Related to Canadian Operations

A positive tax provision of 2.3% appears in 2017 only, with no subsequent data. This suggests a specific tax event connected to Canadian operations in that year.

Share-based Compensation

Share-based compensation had a negative impact of -4.63% in 2017, diminished to -0.47% in 2018, and nearly neutral at 0.02% in 2019. This indicates a reduction in the tax effect of share-based compensation expenses over time.

Other

The "Other" tax effects were slightly negative each year with values of -0.17% in 2015, -0.62% in 2016, -0.03% in 2017, and -0.18% in 2018. No data is reported for 2019. These small negative percentages represent minor and relatively stable miscellaneous tax impacts.

Effective Income Tax Rate, Before TCJA

This rate showed a decline from 34.63% in 2015 to 29.59% in 2016, followed by an increase to 37.5% in 2017. A sharp decrease to 21.98% occurred in 2018, with a slight increase to 22.86% in 2019. These fluctuations indicate varying effective tax burdens prior to considering the Tax Cuts and Jobs Act (TCJA) impact.

Impact of TCJA (Tax Cuts and Jobs Act)

There was no TCJA impact reported before 2017. In 2017, the TCJA caused a substantial negative adjustment of -328.1%, reflecting a major one-time tax benefit or revaluation. In 2018, the effect was still negative but minimal at -2.6%, and no impact was reported in 2019.

Effective Income Tax Rate

The effective income tax rate decreased from 34.63% in 2015 to 29.59% in 2016. It then turned sharply negative to -290.6% in 2017, primarily due to the significant TCJA adjustment. In 2018, the rate normalized to 19.38%, and rose slightly to 22.86% in 2019, indicating a stabilization following the tax reform impact.

The financial data reveals several notable trends across the reporting periods ending December 31 from 2015 through 2019.

Commodity Hedging Contracts

Values fluctuate significantly over the years. There is an increase in 2016 (US$22,206 thousand), absence in 2017, followed by a decline in 2018 (-US$4,883 thousand) and a slight recovery in 2019 (US$4,699 thousand). This volatility indicates active management and changing positions in commodity hedging strategies.

Deferred Compensation Plans

Data indicates a consistent upward trend from US$38,559 thousand in 2015 to US$47,650 thousand in 2019, reflecting growing obligations or reserves related to employee compensation plans over time.

Alternative Minimum Tax Credit Carryforward

Beginning at US$93,316 thousand in 2015, the figure declines in 2016 to US$84,426 thousand, and further drops sharply in 2017 to US$77,114 thousand, with intermittent missing data and a small value in 2019 (US$31,904 thousand). This suggests utilization or expiration of credits during these years.

Foreign Net Operating Loss

Two distinct measures appear in the data. One shows declining amounts from US$47,786 thousand in 2015 to US$37,251 thousand in 2016, with no data afterward. The other, presumably a different classification, exhibits a sharp drop from US$443,010 thousand in 2015 to US$314,899 thousand in 2016, followed by sharp fluctuations—rising again in 2017 to US$423,258 thousand and falling significantly by 2019 to US$66,675 thousand. These fluctuations imply varied utilization or recognition of foreign operating losses and complex tax position adjustments.

Foreign Valuation Allowances

These allowances have consistently been negative, but the magnitude decreases from -US$35,536 thousand in 2015 to -US$28,097 thousand in 2016 in one set, and more substantially from -US$380,104 thousand in 2015 to -US$268,499 thousand in 2016 in another set. Values remain highly negative through 2019, suggesting ongoing concerns about the realizability of deferred tax assets related to foreign operations.

Accrued Expenses and Liabilities

Values show volatility and occasional data gaps. In 2016, a positive amount is reported (US$13,754 thousand), but in 2017 values turn negative (-US$12,094 thousand), then sharply positive again in 2018 (US$19,097 thousand), and decreasing in 2019 (US$8,502 thousand), indicating fluctuating short-term obligations.

Net Current Deferred Income Tax Assets

Shows growth from US$147,812 thousand in 2015 to US$169,387 thousand in 2016, with 2017 onward data unavailable, indicating a possible increase in short-term deferred tax assets.

Foreign Oil and Gas Exploration and Development Costs Deducted for Tax

This line exhibits a transition from negative values in 2015 through 2017 (-US$57,569 thousand to -US$40,851 thousand) to positive values in 2018 and 2019 (US$4,359 thousand and US$5,825 thousand respectively). This shift may reflect changes in tax treatment or asset recognition in foreign operations.

Net Noncurrent Deferred Income Tax Assets and Liabilities

Noncurrent deferred tax assets remain generally low and fluctuate without a clear trend. Conversely, noncurrent deferred income tax liabilities show substantial negative amounts increasing in magnitude from -US$4,587,902 thousand in 2015 to -US$5,046,101 thousand by 2019, indicating growing long-term tax liabilities.

Oil and Gas Exploration and Development Costs Deducted for Tax over Book Depreciation

This item consistently exhibits large negative figures, ranging approximately from -US$3.8 billion in 2017 to -US$5.7 billion in 2016, and growing again to -US$5.3 billion in 2019. The negative values suggest significant timing differences between tax and book deductions, impacting deferred tax calculations.

Equity Awards

The reported values decrease from US$140,663 thousand in 2015 to US$92,696 thousand in 2017, then rebound through 2019 to US$108,324 thousand. This pattern signifies fluctuations possibly related to stock-based compensation expense recognition.

Undistributed Foreign Earnings

The item shows consistent negative values, worsening from -US$258,403 thousand in 2015 to -US$280,099 thousand in 2016, then improving over the following years to -US$15,746 thousand by 2019. This trend suggests repatriation or changes in valuation of foreign earnings.

Other Items

Values under "Other" display inconsistent patterns with some positive and some negative amounts, such as a negative amount in 2016 (-US$4,137 thousand) and positive growth reaching approximately US$46,116 thousand in 2019. This diversity indicates a collection of miscellaneous items without consistent directional movement.

Net Deferred Income Tax Assets (Liabilities)

The net deferred tax position remains substantially negative throughout, increasing in magnitude from -US$4,433,247 thousand in 2015 to -US$5,043,738 thousand in 2019, reflecting a growing net deferred tax liability overall.

In summary, the data conveys complex and fluctuating tax-related balances, with significant deferred tax liabilities increasing over the period. Foreign operations and their related tax attributes display considerable variability, while compensation-related obligations rise steadily. The company's tax credit carryforwards generally decline, consistent with usage or expiration. The net deferred tax asset and liability trends reveal increasing liabilities overshadowing assets, indicating notable timing differences and tax position shifts.

Net current deferred income tax assets

The net current deferred income tax assets increased from 147,812 thousand USD in 2015 to 169,387 thousand USD in 2016. Data for subsequent years is not available, indicating a lack of reported or recorded values beyond 2016.

Net noncurrent deferred income tax assets

The net noncurrent deferred income tax assets show a fluctuating pattern. Starting at 6,843 thousand USD in 2015, a slight increase to 6,986 thousand USD is observed in 2016. This is followed by a significant rise to 17,506 thousand USD in 2017. However, in 2018, the figure sharply declines to 777 thousand USD before increasing again to 2,363 thousand USD in 2019. This volatility suggests inconsistent recognition or utilization of long-term deferred tax assets during the period.

Net noncurrent deferred income tax liabilities

The net noncurrent deferred income tax liabilities exhibit variable trends over the five years. Starting at 4,587,902 thousand USD in 2015, the liabilities increase to 5,188,640 thousand USD in 2016, representing a notable rise. In 2017, there is a marked decline to 3,518,214 thousand USD, followed by an increase to 4,413,398 thousand USD in 2018. The upward trend continues reaching 5,046,101 thousand USD in 2019. These fluctuations might reflect changes in tax regulations, asset base adjustments, or shifts in timing differences affecting deferred tax calculations.

The financial data reveals several notable trends concerning assets, liabilities, equity, and net income over the analyzed period.

Current Assets

Both reported and adjusted current assets show a consistent upward trend from 2015 to 2019. Reported current assets increased from approximately 2.59 billion to 5.27 billion US dollars, while adjusted current assets followed a similar pattern, rising from about 2.44 billion to 5.27 billion US dollars. This growth suggests enhanced liquidity and short-term asset accumulation over the period.

Total Assets

Total assets, both reported and adjusted, also exhibit steady growth throughout the timeframe. Reported total assets grew from roughly 26.98 billion to 37.12 billion US dollars. Adjusted total assets track closely to reported figures, indicating minor adjustments but a consistent overall growth trajectory. This indicates expansion in the asset base, signifying investment or acquisition activity.

Total Liabilities

The reported total liabilities show fluctuations, initially increasing from about 14.03 billion in 2015 to a peak of over 15.47 billion in 2016, followed by a decline to approximately 13.55 billion in 2017, and then rising again to 15.48 billion by 2019. The adjusted total liabilities present a noticeably lower base, starting at approximately 9.44 billion and increasing more gradually to around 10.44 billion by 2019. The disparity between reported and adjusted liabilities suggests significant adjustments, potentially related to deferred tax or other accounting considerations.

Stockholders’ Equity

Reported stockholders’ equity steadily increased from about 12.94 billion in 2015 to 21.64 billion in 2019. Adjusted stockholders’ equity shows a higher starting point and more pronounced growth, rising from approximately 17.38 billion to 26.68 billion in the same period. The stronger growth in adjusted equity relative to reported equity implies that adjustments, possibly for deferred taxes or accounting adjustments, positively affect equity valuation.

Net Income (Loss)

Net income presents a volatile but improving trend. Reported net losses were significant in 2015 and 2016, at approximately -4.52 billion and -1.10 billion US dollars, respectively, before shifting to positive income in 2017 through 2019, peaking at around 3.42 billion in 2018 and slightly decreasing to 2.73 billion in 2019. Adjusted net income exhibits a similar pattern but with deeper losses initially (-7.01 billion in 2015 and -1.61 billion in 2016), a smaller positive outcome in 2017 (about 595 million), followed by increases in 2018 and 2019, reaching 3.61 billion in 2019. The adjusted figures suggest that non-cash or deferred tax items heavily influenced the earlier loss years and enhanced reported profitability later on.

Overall, the company demonstrates asset growth and improving profitability from 2015 to 2019, with adjusted figures indicating the impact of deferred taxes or related accounting adjustments on liabilities, equity, and net income. The fluctuations in reported liabilities and net income underscore potential volatility or reclassification effects in the financial statements during this period.

The data reveals several notable trends over the five-year period from 2015 to 2019 regarding the company's liquidity, profitability, asset management, leverage, and returns.

Liquidity Ratios (Current Ratios)

Both reported and adjusted current ratios start at a moderate level in 2015, with values of 1.42 and 1.34 respectively. There is an increase in 2016, peaking at 1.75 (reported) and 1.67 (adjusted), indicating improved short-term liquidity. However, after 2016, the ratios decline steadily, reaching their lowest point in 2019 at 1.18. The changes suggest a peak in liquidity management during 2016, followed by a gradual tightening of current assets relative to current liabilities.

Profitability (Net Profit Margin)

Reported net profit margin shows substantial improvement over the period. It starts with a significant negative margin of -51.66% in 2015, improves to a slightly negative margin in 2016 (-14.33%), then shifts to positive territory from 2017 onwards, peaking at 23.04% in 2017 before slightly declining to 15.74% in 2019. The adjusted net profit margin exhibits more volatility and lower values, with a deeper negative margin in 2015 (-80.01%) and 2016 (-21.07%). After reaching a positive margin in 2017 (5.31%), the adjusted margin improves considerably to 25.83% in 2018, then shows a moderate decline to 20.74% in 2019. This pattern indicates that once adjustments for taxes are factored, profitability was severely impacted initially but recovered strongly in later years.

Asset Efficiency (Total Asset Turnover)

Both reported and adjusted total asset turnover ratios are nearly identical and show a generally improving trend from 2015 through 2018. Starting at around 0.32-0.33 in 2015, the turnover declines slightly in 2016 to 0.26, then rises to a peak of 0.51 in 2018 before marginally decreasing to 0.47 in 2019. The trend suggests enhanced efficiency in using assets to generate revenues, especially notable in 2018.

Financial Leverage

A distinct disparity exists between reported and adjusted figures in financial leverage. Reported leverage remains relatively stable, gradually decreasing from 2.08 in 2015 to 1.72 in 2019, indicating a slow reduction in debt relative to equity. Adjusted financial leverage is consistently lower, starting at 1.54 and declining steadily to 1.39 by 2019. This suggests that when income tax effects are considered, the company’s leverage position appears more conservative and steadily improving.

Returns on Equity (ROE)

Both reported and adjusted ROE demonstrate a clear recovery over the period. Initially, ROE is negative and deep (-34.96% reported and -40.32% adjusted in 2015), indicating significant losses relative to shareholder equity. The negative trend moderates substantially in 2016, followed by a transition to positive territory in 2017. Reported ROE peaks at 17.66% in 2018, with a slight fall to 12.64% in 2019. Adjusted ROE follows a similar pattern but with more conservative values, peaking at 18.77% in 2018 before declining to 13.51% in 2019. The improvement signals enhanced profitability and efficient shareholder equity utilization over time.

Returns on Assets (ROA)

Reported ROA and adjusted ROA are both negative in the early years, with adjusted figures showing a deeper loss (-26.12% in 2015). After 2016, both measures turn positive, with an upward trend until 2018 (maximum reported ROA of 10.08% and adjusted ROA of 13.15%). Both ratios show a decline in 2019, but remain positive. This indicates a recovery in asset profitability, with adjustments reflecting somewhat lower asset returns initially but converging to slightly higher returns in later periods.

In summary, the data reflects a company that faced significant challenges in 2015 and 2016, evidenced by negative profitability and returns. However, there is a clear trend of recovery and improvement in liquidity, asset utilization, profitability, and leverage from 2017 onwards. Adjusted ratios that account for reported and deferred income tax effects generally present a more conservative view but follow similar trajectories, confirming improved operational efficiency and financial health over the observed period.

The analysis of the annual reported and deferred income tax adjusted financial data reveals several key trends in the liquidity posture over the five-year period ending in 2019.

Current Assets

The reported current assets exhibited a general upward trend, increasing from approximately $2.59 billion in 2015 to about $5.27 billion by 2019. This more than doubling over the period suggests substantial growth in the company's short-term assets available to cover liabilities.

The adjusted current assets, which account for deferred income tax adjustments, closely mirror the reported figures with a slight downward adjustment in 2015 and 2016 but identical values thereafter. This adjustment indicates that deferred income taxes had minimal impact on the liquidity position in the later years.

Current Ratio

The reported current ratio, a measure of short-term liquidity, fluctuated during the period. It rose from 1.42 in 2015 to a peak of 1.75 in 2016, indicating an improved ability to meet short-term obligations. However, it subsequently declined to 1.18 by 2019, suggesting a weakening liquidity position compared to earlier years.

The adjusted current ratio follows the same trajectory as the reported current ratio, with slightly lower values in 2015 and 2016 due to the aforementioned deferred tax adjustments. From 2017 onwards, both ratios align exactly, reinforcing the conclusion that deferred taxes had negligible effects on the liquidity ratios in the latter years.

Overall, the company's reported growth in current assets is an encouraging sign of expanding short-term resources. Nevertheless, the declining trend in the current ratio after 2016 signals a relative increase in current liabilities or a change in asset quality, which may warrant further investigation to assess short-term financial stability. The consistency between reported and adjusted ratios in recent years suggests that deferred income tax adjustments do not materially distort liquidity measurements in the latest periods.

The financial data reveals notable fluctuations in both reported and adjusted net income figures over the examined period. Initially, the reported net income exhibits a significant loss of approximately -4.52 billion US dollars in 2015, followed by a reduction in losses to around -1.10 billion US dollars in 2016. The trend reverses thereafter with positive net income figures recorded from 2017 onward, peaking at roughly 3.42 billion US dollars in 2018 before slightly declining to approximately 2.73 billion US dollars in 2019.

Adjusted net income follows a similar trajectory, though with a broader range of variation. The adjusted net income loss in 2015 is substantially larger at nearly -7.01 billion US dollars, narrowing to approximately -1.61 billion in 2016. Positive adjusted net income is observed from 2017 forward, starting with a much smaller gain of about 595 million US dollars in 2017 before increasing substantially to over 4.46 billion in 2018 and then moderately declining to approximately 3.61 billion in 2019.

Reported net profit margin

The reported net profit margin starts in deeply negative territory at -51.66% in 2015, improves significantly to -14.33% in 2016, and then moves into positive margins ranging between 15.74% and 23.04% from 2017 to 2019. The highest margin is seen in 2017 at 23.04%, with a gradual decline through 2019.

Adjusted net profit margin

The adjusted net profit margin mirrors the reported margin trend but with more dramatic shifts. It shows a low of -80.01% in 2015 and improves markedly to -21.07% in 2016. From 2017 onward, margins are positive, though the 2017 figure is relatively modest at 5.31%. Margins peak in 2018 at 25.83% before decreasing slightly to 20.74% in 2019.

Overall, the financial results indicate that the company experienced substantial losses in 2015 and 2016 according to both reported and adjusted measures, followed by a strong recovery beginning in 2017. The positive trend in net income and profit margins suggests improved profitability and operational performance in the latter years of the period. Adjusted results highlight more pronounced volatility but ultimately confirm the pattern of financial recovery and margin expansion compared to reported results. The decrease in margins in 2019 after their peak in 2018 may warrant further analysis to determine underlying causes and the sustainability of profitability.

The analysis of the annual reported and deferred income tax adjusted financial data reveals several key trends over the five-year period ending December 31, 2019.

Total Assets

Both the reported total assets and adjusted total assets show a consistent upward trajectory from 2015 to 2019, indicating growth in the asset base. Reported total assets increased from approximately $26.98 billion in 2015 to $37.12 billion in 2019. Adjusted total assets followed a similar pattern, rising from approximately $26.82 billion to $37.12 billion over the same timeframe. The close proximity of reported and adjusted figures suggests minimal impact from deferred income tax adjustments on the asset base.

Total Asset Turnover

The reported and adjusted total asset turnover ratios exhibit parallel trends, starting from 0.32 and 0.33 respectively in 2015. Both declined to 0.26 in 2016 but then improved significantly in subsequent years, peaking in 2018 at 0.51. The ratios slightly decreased in 2019 to 0.47. This pattern indicates a fluctuation in the efficiency with which the company utilized its assets to generate revenue, with a notable improvement after 2016 followed by a modest decline in the final year.

Comparative Analysis

The close alignment between reported and adjusted measures for both total assets and asset turnover ratios throughout the period suggests that deferred income tax adjustments had limited influence on these performance indicators. This consistency in adjusted data reinforces the reliability of the observed trends in asset growth and turnover efficiency.

Total Assets

Total assets show a consistent upward trend over the five-year period. Reported total assets increased from approximately 26.98 billion US dollars at the end of 2015 to about 37.12 billion US dollars by the end of 2019. The adjusted total assets follow a similar pattern, rising steadily each year and closely mirroring the reported figures, with a slight difference in magnitude.

Stockholders’ Equity

Reported stockholders' equity exhibits consistent growth, rising from roughly 12.94 billion US dollars in 2015 to 21.64 billion US dollars in 2019. The adjusted stockholders' equity, however, starts at a significantly higher base and follows a more pronounced increase over the period, growing from approximately 17.38 billion US dollars to 26.68 billion US dollars. The divergence between reported and adjusted equity indicates substantial adjustments likely related to deferred income tax impacts, which suggests that the adjusted figures present a stronger equity position.

Financial Leverage

Financial leverage ratios, measuring the relationship between total assets and equity, declined steadily during the period, indicating a reduction in reliance on debt financing relative to equity. Reported financial leverage decreased from 2.08 in 2015 to 1.72 in 2019, while adjusted financial leverage showed a similar declining trend from 1.54 to 1.39. The consistently lower adjusted leverage ratios reflect the higher adjusted equity values, pointing to a more conservative capital structure after tax adjustments.

Overall Trends and Insights

The data reveals sustained growth in both total assets and equity, suggesting an expanding asset base supported by increasing shareholder investment and retained earnings. The steady decline in financial leverage ratios implies an improving financial risk profile, with the company becoming less dependent on debt over time. The difference between reported and adjusted figures underscores the impact of income tax considerations on balance sheet items, with adjusted data portraying a more robust equity base and lower leverage, which could be relevant for stakeholders assessing long-term financial stability.

The financial data reveals several notable trends over the five-year period ending December 31, 2019. The company's reported net income shows significant volatility, with a substantial loss in 2015 followed by a continued loss in 2016, transitioning to positive and increasing values in 2017 and 2018, then a decrease in 2019 compared to 2018. The adjusted net income follows a similar trajectory but with more pronounced losses in the earlier years and a higher peak in 2018, before declining somewhat in 2019.

Stockholders’ equity, both reported and adjusted, demonstrates a consistent upward trend across the entire period. Reported equity increases steadily each year from approximately 12.9 billion US dollars in 2015 to over 21.6 billion in 2019. Adjusted stockholders’ equity, which presumably accounts for deferred tax and other adjustments, shows a similar growth pattern, starting higher than the reported figure and reaching approximately 26.7 billion US dollars by 2019.

The return on equity (ROE), both reported and adjusted, reflects the fluctuations in net income relative to equity. Reported ROE is strongly negative in 2015 and 2016, indicating significant losses relative to equity. It improves markedly in 2017 and peaks in 2018 before decreasing in 2019. Adjusted ROE tracks a slightly different pattern, with very negative values in 2015 and 2016, a minimal positive value in 2017, a peak exceeding reported ROE in 2018, and a decline in 2019, although remaining positive.

Net Income (Reported and Adjusted)

Both metrics start with major losses in 2015 and 2016, shift to profitability in 2017-2018, and see a decrease in 2019, with adjusted net income showing larger magnitudes of change.

Stockholders’ Equity (Reported and Adjusted)

A consistent and strong increase is noted throughout the period, indicating growth in the company’s equity base, with adjusted equity figures systematically higher than reported.

Return on Equity (ROE) (Reported and Adjusted)

ROE metrics mirror the net income trends, with deeply negative returns during loss periods and improved returns during profit phases. The adjusted ROE exhibits more variability, particularly a modest increase in 2017 and higher peak in 2018 compared to reported ROE.

Overall, the financial data suggests a company that struggled significantly with losses early in the period but achieved a phase of profitability and equity growth subsequently. Adjusted figures highlight greater volatility and magnitude, likely reflecting tax adjustments influencing net income and equity valuations. The decline in net income and ROE in 2019 after peak performance in 2018 may warrant further examination to understand underlying causes.

The financial data reveals distinct trends in both reported and adjusted income measures, alongside corresponding asset base developments over the analyzed five-year period ending December 31, 2019.

Net Income (Loss) Trends

The reported net income showed a significant improvement from a substantial loss of approximately -$4.52 billion in 2015 to a positive income exceeding $2.7 billion in 2019. This upward trajectory included a peak in 2018 at roughly $3.42 billion, followed by a slight decline in 2019. The adjusted net income presents a similar but more pronounced pattern, with an initial loss of about -$7.01 billion in 2015 improving to over $3.60 billion by 2019. Notably, the adjusted figures indicate a more volatile journey through the years, with losses much more severe in the earlier periods and a steadier climb to profitability in later years compared to reported income.

Total Assets Movement

Both reported and adjusted total assets steadily increased throughout the period. Reported total assets grew from approximately $26.98 billion in 2015 to $37.12 billion by 2019, reflecting consistent asset accumulation or acquisition. The adjusted asset figures are closely aligned with reported amounts, showing a similar upward pattern and marginally lower values in some years, suggesting minor adjustments without substantially impacting the overall asset base trend.

Return on Assets (ROA) Analysis

The reported ROA mirrored the improvement seen in net income figures, moving from a negative -16.77% in 2015 to positive single-digit returns, peaking at 10.08% in 2018 before settling at 7.37% in 2019. Adjusted ROA exhibited more volatility, starting from a negative -26.12% in 2015, improving to a modest positive 2% in 2017, then surging to a high of 13.15% in 2018 before declining to 9.71% in 2019. This suggests that the adjustments significantly affect profitability measurements, especially evident in the improved returns from 2017 onward.

Overall Insights

The financial progression points toward a recovery phase commencing between 2016 and 2017, transitioning from sizable losses to sustainable profitability. Asset growth supports this recovery, with a robust increase in total assets likely facilitating increased income generation capacity. The adjustments made for deferred income tax and other factors appear to magnify the effects of the loss and subsequent rebound, highlighting that reported figures might understate or lag behind the economic reality. The declining ROA from 2018 to 2019, despite still being positive, signals a potential moderation in profitability relative to assets that may warrant closer monitoring.