Newmont Corp. (NYSE:NEM)

The analyzed data reveals several significant trends over the five-year period ending December 31, 2023. Both reported and adjusted figures exhibit correlations in movements, with adjusted data generally presenting a more conservative view due to the exclusion of goodwill.

Total Assets

The total assets, both reported and adjusted, remained relatively stable from 2019 through 2022, with reported assets ranging between approximately $38.5 billion and $41.4 billion, and adjusted assets slightly lower by around $2.7 billion consistently. However, there is a marked increase in 2023, with reported assets rising sharply to approximately $55.5 billion and adjusted assets similarly increasing to about $52.5 billion. This surge suggests significant asset acquisitions or revaluations during 2023.

Stockholders’ Equity

Stockholders’ equity shows a downward trend from 2019 through 2022 in both reported and adjusted terms. Reported equity declines from approximately $21.4 billion in 2019 to $19.4 billion in 2022, while adjusted equity decreases from approximately $18.7 billion to $17.4 billion during the same period. The equity figures turn upward in 2023, with reported stockholders’ equity increasing markedly to approximately $29.0 billion, and adjusted equity rising to about $26.0 billion, mirroring the pattern observed in total assets.

Net Income (Loss) Attributable to Stockholders

Net income attributable to stockholders shows a decline over the five years, with reported net income peaking at around $2.8 billion in 2019 and 2020, then dropping sharply to $1.2 billion in 2021. There is a notable loss in 2022 and 2023, with reported figures showing negative values of approximately $429 million and $2.5 billion, respectively. Adjusted net income data follows a similar path but records a less severe loss in 2022 ($371 million net income) and a smaller loss in 2023 (-$734 million), indicating that goodwill adjustments mitigate some reported losses during these years.

Overall, the data suggests stable asset and equity levels initially, followed by substantial growth in 2023, potentially reflecting new investments, acquisitions, or asset revaluations. Conversely, profitability eroded significantly beginning in 2021, culminating in losses in the last two years, with adjustments for goodwill indicating a less severe but still negative performance.

The data reveals a noticeable decline in profitability metrics over the analyzed periods, with both reported and adjusted values reflecting this downward trajectory.

Net Profit Margin

The reported net profit margin decreases substantially from 28.8% in 2019 to a negative 21.11% in 2023. The adjusted net profit margin, which likely excludes goodwill impairments or other nonrecurring items, also shows a decline but remains less negative, falling from 28.8% to -6.21% over the same period. This contrast suggests that goodwill adjustments mitigate some of the apparent losses, but overall profitability deteriorated significantly after 2021.

Total Asset Turnover

Reported total asset turnover improved steadily from 0.24 in 2019 to a peak of 0.31 in 2022 before dropping to 0.21 in 2023. Adjusted totals follow a similar pattern but with slightly higher values, increasing from 0.26 to 0.33 by 2022, then decreasing to 0.22 in 2023. The rise through 2022 suggests improved efficiency in asset utilization, although the decline in 2023 indicates a reversal in this trend.

Financial Leverage

Both reported and adjusted financial leverage ratios fluctuate mildly, with reported leverage moving between 1.8 and 1.99, and adjusted leverage showing slightly higher values, ranging from 1.91 to 2.1. The slight increase in leverage through 2022 implies increased use of debt or liabilities to finance assets, which somewhat receded in 2023 but remained above the 2019 level.

Return on Equity (ROE)

Reported ROE declines sharply from 13.1% in 2019 to a negative 8.59% in 2023, reflecting mounting losses or reduced profitability for equity holders. Adjusted ROE presents a less severe but still negative outlook in 2023 at -2.82%, indicating that goodwill adjustments soften but do not eliminate the negative trend. The diminishing returns highlight challenges in generating shareholder value, especially after 2021.

Return on Assets (ROA)

Reported ROA decreases from 7.02% in 2019 to a low of -4.49% in 2023, while adjusted ROA follows a similar trajectory but maintains a less negative stance, ending at -1.4%. These figures point towards overall inefficiency in asset utilization to generate profits, with some recovery in adjusted ROA during 2022, then a decline in 2023.

Overall, the financial performance shows significant weakening after 2021 across profitability and return measures, despite improved asset turnover and slightly increased leverage around 2022. The goodwill adjustments generally produce less severe negative indicators, suggesting that impairments or accounting considerations significantly impact reported outcomes. The data suggests that the company faced operational and financial challenges in the latest periods, with reduced profitability and returns despite earlier gains in operational efficiency.

The financial data exhibits a notable shift in profitability and earnings performance over the five-year period.

Reported net income attributable to Newmont stockholders

The reported net income demonstrates a declining trend. Starting from a positive figure of US$2,805 million in 2019, it remains relatively stable in 2020. However, beginning in 2021, there is a sharp decrease, plunging to US$1,166 million, then turning negative in 2022 (-US$429 million), and further deteriorating to -US$2,494 million in 2023. This indicates increasingly challenging financial conditions impacting profitability.

Adjusted net income attributable to Newmont stockholders

The adjusted net income follows a similar downward trajectory but remains positive for a longer period. It matches the reported figures through 2021, but unlike the reported amounts, it shifts to a positive adjusted net income of US$371 million in 2022 before falling again to a negative adjusted net income of -US$734 million in 2023. The adjustments appear to mitigate some of the losses seen in the reported figures, particularly in 2022, suggesting some one-time or non-recurring items influencing the reported losses.

Reported net profit margin

The reported net profit margin mirrors the net income trend, starting at a solid 28.8% in 2019 and gradually declining to 24.61% in 2020. The margin contracts sharply in 2021 to 9.54% and turns negative in subsequent years, reaching -3.6% in 2022 and worsening significantly to -21.11% in 2023. This deterioration indicates a decline in profitability relative to revenues and highlights growing operational pressures.

Adjusted net profit margin

The adjusted net profit margin is consistent with the adjusted net income data. It starts at 28.8% in 2019 and declines over time, but remains positive at 3.11% for 2022 before turning negative at -6.21% in 2023. The adjustments help sustain a narrower margin in 2022 compared to the reported margin, reinforcing the effect of certain adjustments in smoothing income fluctuations. Nonetheless, by 2023, the adjusted margin reflects ongoing financial strain.

In summary, the company experienced strong profitability in 2019 and 2020, followed by a significant and steady decline in net income and net profit margin from 2021 onwards. Adjusted figures reveal somewhat less severe losses, particularly in 2022, indicating that exceptional items impacted the reported results. Nevertheless, both reported and adjusted data depict a challenging environment resulting in negative earnings and margins by 2023.

Total Assets

The reported total assets exhibited a stable trend from 2019 to 2022, remaining within the range of approximately $38.5 billion to $41.4 billion. In 2023, there was a significant increase to about $55.5 billion. The adjusted total assets, which exclude goodwill, follow a similar pattern, showing steady levels from 2019 through 2022, with values marginally lower than the reported figures, and then a notable rise in 2023 to approximately $52.5 billion.

Total Asset Turnover

The reported total asset turnover ratio showed a gradual improvement from 0.24 in 2019 to 0.31 in 2022, indicating increasing efficiency in utilizing assets to generate revenue during this period. However, in 2023, the ratio declined sharply to 0.21. The adjusted total asset turnover ratio mirrors this trend but maintains slightly higher values, rising from 0.26 in 2019 to 0.33 in 2022 before dropping to 0.22 in 2023.

Analysis of Trends and Insights

Between 2019 and 2022, the company showed consistent asset levels with improving asset turnover ratios, suggesting enhanced operational efficiency or revenue growth relative to asset size. The sharp increase in total assets in 2023, both reported and adjusted, alongside the decrease in turnover ratios, implies that asset growth outpaced revenue generation during that year. This could indicate a period of expansion or significant asset acquisition that has yet to translate into proportional revenue increases, or a possible impairment or revaluation impacting asset figures. The adjusted figures indicate that goodwill adjustments slightly improve turnover ratios but do not alter the overall trend.

The financial data reflects notable fluctuations and trends in the reported and goodwill adjusted figures over the five-year period from 2019 to 2023.

Total Assets

Reported total assets showed relative stability from 2019 through 2022, fluctuating slightly between approximately 38 billion and 41 billion US dollars. However, in 2023, there was a marked increase to 55.5 billion US dollars, representing a substantial rise compared to previous years. Adjusted total assets, which exclude goodwill, followed a similar pattern but remained consistently lower than reported assets. The adjusted figures also demonstrated relative stability until 2022, followed by a sharp increase to 52.5 billion US dollars in 2023, closely paralleling the trend seen in reported assets.

Stockholders' Equity

Reported total stockholders' equity initially increased from 21.4 billion US dollars in 2019 to a peak of 23 billion US dollars in 2020, subsequently declining to 19.4 billion US dollars by 2022. In 2023, equity rebounded significantly to 29 billion US dollars. The adjusted equity, excluding goodwill, mirrored this trajectory but consistently reported lower values than the reported equity, indicating the impact of goodwill on equity figures. The adjusted equity reached a low point of 17.4 billion US dollars in 2022 before rising to 26 billion US dollars in 2023.

Financial Leverage

The reported financial leverage ratio remained relatively stable, fluctuating around the range of 1.8 to 2.0 over the period. It dipped slightly from 1.87 in 2019 to 1.80 in 2020, increased to 1.99 in 2022, before settling at 1.91 in 2023. The adjusted financial leverage, which is typically higher due to excluding goodwill from equity, consistently exceeded the reported leverage. It exhibited a gradual upward trend from 1.99 in 2019 to 2.10 in 2022, then decreased marginally to 2.02 in 2023. This suggests a modest increase in leverage when excluding goodwill adjustments, indicating a somewhat higher reliance on debt as a proportion of equity after goodwill is removed.

Overall, the significant increase in total assets and equity in 2023 suggests possible acquisitions, asset revaluations, or other substantial events positively impacting the balance sheet size and equity base. The relatively stable financial leverage ratios imply that the company's capital structure has remained balanced despite these changes. Adjusted metrics consistently portray a leaner asset and equity base, underscoring the material presence of goodwill in the reported figures. This analysis highlights the importance of considering goodwill adjustments for a more conservative view of financial leverage and asset valuation trends.

The financial data presents a multi-year perspective on profitability, equity, and return on equity (ROE) for the company, both on a reported basis and adjusted for goodwill.

Net Income (Loss) Trends

Reported net income attributable to stockholders showed strong positive results in 2019 and 2020, with earnings around 2.8 billion US dollars. However, there was a marked decline starting in 2021, where income fell to approximately 1.17 billion, before turning negative in the subsequent two years, reaching a loss of nearly 2.5 billion by 2023.

The adjusted net income, which accounts for goodwill, mirrors this declining trend but indicates somewhat less pronounced losses in 2022 and 2023, with adjusted income turning positive in 2022 and a smaller loss than reported in 2023. This suggests that goodwill adjustments have a mitigating effect on the apparent losses in the latter years.

Stockholders’ Equity Patterns

Reported total stockholders’ equity increased from 21.4 billion in 2019 to a peak of 23.0 billion in 2020, then generally declined to 19.4 billion in 2022 before rebounding sharply to 29.0 billion in 2023. The adjusted equity follows a similar trajectory but remains consistently lower in absolute terms, reflecting the removal of goodwill effects.

Notably, in 2023, both reported and adjusted equity show a significant increase, suggesting possible capital infusions, retained earnings adjustments, or other changes influencing shareholder value despite the net income challenges.

Return on Equity (ROE) Analysis

Reported ROE percentages demonstrate a declining performance trend. After a strong double-digit return in 2019 and 2020, the ratio dramatically falls to a moderate positive return in 2021 and turns negative in 2022 and 2023, indicating the company's inability to generate profit from equity capital during these years.

The adjusted ROE reveals a similar pattern, though it remains slightly higher throughout the period and maintains positive territory in 2022, reflecting the impact of goodwill adjustments which improve the equity base and income measures used in the calculation.

Overall Observations

The data evidences a deterioration in profitability from 2021 onward, with the company facing operating challenges that substantially erode net income. The rebound in equity values in 2023, despite the continued net income losses, may indicate structural or strategic financial actions taken to stabilize the company’s balance sheet.

Goodwill adjustments consistently moderate the losses and low returns, providing a more conservative view of performance by excluding intangible asset impacts. The trends suggest careful attention should be given to the underlying operational factors driving earnings declines and equity fluctuations.

Net Income Trends

The reported net income attributable to stockholders demonstrated a significant decline over the five-year period. Starting from a positive value of 2805 million USD in 2019, it remained stable into 2020 but then fell sharply to 1166 million USD in 2021. This was followed by a transition into negative territory in 2022 and further deterioration in 2023, reaching a loss of 2494 million USD. The adjusted net income shows a similar declining pattern but indicates somewhat less severity in losses for 2022 and 2023, with adjusted figures of 371 million USD and -734 million USD respectively, suggesting the impact of non-operational or one-time adjustments on the reported results.

Total Assets Trends

Reported total assets fluctuated moderately between 2019 and 2022, moving within a narrow range from approximately 39974 million USD to 38482 million USD, indicating some reductions in asset base. However, in 2023, total assets saw a substantial increase to 55506 million USD. Adjusted total assets follow a similar trend, showing a stable to slightly declining asset base until 2022, with a marked rise in 2023 to 52505 million USD. The difference between reported and adjusted totals suggests adjustments primarily related to goodwill or intangible assets.

Return on Assets (ROA) Analysis

The reported ROA declined steadily from a positive 7.02% in 2019 to negative territory by 2022 (-1.11%) and further decreased to -4.49% in 2023. The adjusted ROA, which accounts for asset adjustments, followed a similar trend but maintained slightly better performance levels than reported ROA throughout these years, remaining positive in 2022 at 1.02% before turning negative in 2023 at -1.4%. This pattern indicates decreasing efficiency in asset utilization to generate earnings, exacerbated in the later years.

Overall Insights

The financial performance exhibited a weakening trend over the analyzed period, with profitability eroding into losses by the final two years. Despite this, the increase in total assets in 2023 suggests strategic investment or acquisitions that expanded the asset base considerably. Adjustments for goodwill or other factors moderate the severity of net losses and asset reductions but do not reverse the negative profitability trend. The declining ROA aligns with weakening earnings, highlighting challenges in generating returns from the company's asset base during recent years.