Stock Analysis on Net
Stock Analysis on Net

Kinder Morgan Inc. (NYSE:KMI)

This company has been moved to the archive! The financial data has not been updated since April 29, 2020.

Analysis of Goodwill and Intangible Assets

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Adjustments to Financial Statements: Removal of Goodwill

Kinder Morgan Inc., adjustments to financial statements

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 74,157 78,866 79,055 80,305 84,104
Less: Goodwill 21,451 21,965 22,162 22,152 23,790
Total assets (adjusted) 52,706 56,901 56,893 58,153 60,314
Adjustment to Total Kinder Morgan, Inc.’s Stockholders’ Equity
Total Kinder Morgan, Inc.’s stockholders’ equity (as reported) 33,742 33,678 33,636 34,431 35,119
Less: Goodwill 21,451 21,965 22,162 22,152 23,790
Total Kinder Morgan, Inc.’s stockholders’ equity (adjusted) 12,291 11,713 11,474 12,279 11,329
Adjustment to Net Income Attributable To Kinder Morgan, Inc.
Net income attributable to Kinder Morgan, Inc. (as reported) 2,190 1,609 183 708 253
Add: Loss on impairment of goodwill — — — — 1,150
Net income attributable to Kinder Morgan, Inc. (adjusted) 2,190 1,609 183 708 1,403

Based on: 10-K (reporting date: 2019-12-31), 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).

Kinder Morgan Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Kinder Morgan Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net Profit Margin
Reported net profit margin 16.58% 11.38% 1.34% 5.42% 1.76%
Adjusted net profit margin 16.58% 11.38% 1.34% 5.42% 9.74%
Total Asset Turnover
Reported total asset turnover 0.18 0.18 0.17 0.16 0.17
Adjusted total asset turnover 0.25 0.25 0.24 0.22 0.24
Financial Leverage
Reported financial leverage 2.20 2.34 2.35 2.33 2.39
Adjusted financial leverage 4.29 4.86 4.96 4.74 5.32
Return on Equity (ROE)
Reported ROE 6.49% 4.78% 0.54% 2.06% 0.72%
Adjusted ROE 17.82% 13.74% 1.59% 5.77% 12.38%
Return on Assets (ROA)
Reported ROA 2.95% 2.04% 0.23% 0.88% 0.30%
Adjusted ROA 4.16% 2.83% 0.32% 1.22% 2.33%

Based on: 10-K (reporting date: 2019-12-31), 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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Kinder Morgan Inc. adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kinder Morgan Inc. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Kinder Morgan Inc. adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Kinder Morgan Inc. adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Kinder Morgan Inc. adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.

Kinder Morgan Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kinder Morgan, Inc. 2,190 1,609 183 708 253
Revenues 13,209 14,144 13,705 13,058 14,403
Profitability Ratio
Net profit margin1 16.58% 11.38% 1.34% 5.42% 1.76%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kinder Morgan, Inc. 2,190 1,609 183 708 1,403
Revenues 13,209 14,144 13,705 13,058 14,403
Profitability Ratio
Adjusted net profit margin2 16.58% 11.38% 1.34% 5.42% 9.74%

Based on: 10-K (reporting date: 2019-12-31), 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).

2019 Calculations

1 Net profit margin = 100 × Net income attributable to Kinder Morgan, Inc. ÷ Revenues
= 100 × 2,190 ÷ 13,209 = 16.58%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Kinder Morgan, Inc. ÷ Revenues
= 100 × 2,190 ÷ 13,209 = 16.58%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Kinder Morgan Inc. adjusted net profit margin ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Revenues 13,209 14,144 13,705 13,058 14,403
Total assets 74,157 78,866 79,055 80,305 84,104
Activity Ratio
Total asset turnover1 0.18 0.18 0.17 0.16 0.17
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues 13,209 14,144 13,705 13,058 14,403
Adjusted total assets 52,706 56,901 56,893 58,153 60,314
Activity Ratio
Adjusted total asset turnover2 0.25 0.25 0.24 0.22 0.24

Based on: 10-K (reporting date: 2019-12-31), 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).

2019 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 13,209 ÷ 74,157 = 0.18

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 13,209 ÷ 52,706 = 0.25

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Kinder Morgan Inc. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 74,157 78,866 79,055 80,305 84,104
Total Kinder Morgan, Inc.’s stockholders’ equity 33,742 33,678 33,636 34,431 35,119
Solvency Ratio
Financial leverage1 2.20 2.34 2.35 2.33 2.39
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 52,706 56,901 56,893 58,153 60,314
Adjusted total Kinder Morgan, Inc.’s stockholders’ equity 12,291 11,713 11,474 12,279 11,329
Solvency Ratio
Adjusted financial leverage2 4.29 4.86 4.96 4.74 5.32

Based on: 10-K (reporting date: 2019-12-31), 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).

2019 Calculations

1 Financial leverage = Total assets ÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= 74,157 ÷ 33,742 = 2.20

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Kinder Morgan, Inc.’s stockholders’ equity
= 52,706 ÷ 12,291 = 4.29

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Kinder Morgan Inc. adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kinder Morgan, Inc. 2,190 1,609 183 708 253
Total Kinder Morgan, Inc.’s stockholders’ equity 33,742 33,678 33,636 34,431 35,119
Profitability Ratio
ROE1 6.49% 4.78% 0.54% 2.06% 0.72%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kinder Morgan, Inc. 2,190 1,609 183 708 1,403
Adjusted total Kinder Morgan, Inc.’s stockholders’ equity 12,291 11,713 11,474 12,279 11,329
Profitability Ratio
Adjusted ROE2 17.82% 13.74% 1.59% 5.77% 12.38%

Based on: 10-K (reporting date: 2019-12-31), 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).

2019 Calculations

1 ROE = 100 × Net income attributable to Kinder Morgan, Inc. ÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= 100 × 2,190 ÷ 33,742 = 6.49%

2 Adjusted ROE = 100 × Adjusted net income attributable to Kinder Morgan, Inc. ÷ Adjusted total Kinder Morgan, Inc.’s stockholders’ equity
= 100 × 2,190 ÷ 12,291 = 17.82%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Kinder Morgan Inc. adjusted ROE improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Kinder Morgan, Inc. 2,190 1,609 183 708 253
Total assets 74,157 78,866 79,055 80,305 84,104
Profitability Ratio
ROA1 2.95% 2.04% 0.23% 0.88% 0.30%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Kinder Morgan, Inc. 2,190 1,609 183 708 1,403
Adjusted total assets 52,706 56,901 56,893 58,153 60,314
Profitability Ratio
Adjusted ROA2 4.16% 2.83% 0.32% 1.22% 2.33%

Based on: 10-K (reporting date: 2019-12-31), 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).

2019 Calculations

1 ROA = 100 × Net income attributable to Kinder Morgan, Inc. ÷ Total assets
= 100 × 2,190 ÷ 74,157 = 2.95%

2 Adjusted ROA = 100 × Adjusted net income attributable to Kinder Morgan, Inc. ÷ Adjusted total assets
= 100 × 2,190 ÷ 52,706 = 4.16%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Kinder Morgan Inc. adjusted ROA improved from 2017 to 2018 and from 2018 to 2019.