Analysis of Income Taxes
- Income Tax Expense (Benefit)
- Effective Income Tax Rate (EITR)
- Components of Deferred Tax Assets and Liabilities
- Deferred Tax Assets and Liabilities, Classification
- Adjustments to Financial Statements: Removal of Deferred Taxes
- Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
- Adjusted Net Profit Margin
- Adjusted Total Asset Turnover
- Adjusted Financial Leverage
- Adjusted Return on Equity (ROE)
- Adjusted Return on Assets (ROA)
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Dividend Discount Model (DDM)
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Income Tax Expense (Benefit)
Thermo Fisher Scientific Inc., income tax expense (benefit), continuing operations
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
- Current Income Tax Provision
-
The current income tax provision shows notable fluctuations over the five-year period. Starting at $1,119 million in 2020, there is a significant increase to $1,754 million in 2021. In 2022, the provision slightly decreases to $1,700 million and continues to decline to $1,584 million in 2023. However, the amount rises again in 2024 to $1,866 million, marking the highest value in the observed timeframe.
- Deferred Income Tax Benefit
-
The deferred income tax benefit demonstrates a consistent downward trend in absolute value, indicating increasing deferred tax benefits (negative values represent benefits). Beginning at -$269 million in 2020, the benefit expands substantially over the years, reaching -$645 million in 2021 and -$997 million in 2022. The trend continues with a peak deferred benefit of -$1,300 million in 2023 before a slight reduction to -$1,209 million in 2024.
- Provision for Income Taxes
-
The total provision for income taxes exhibits a decreasing trend through the middle of the period, followed by partial recovery. It starts at $850 million in 2020, climbs to a peak of $1,109 million in 2021, then drops sharply to $703 million in 2022 and further to $284 million in 2023. In 2024, the provision rebounds to $657 million, though it remains below the earlier peak levels.
- Summary of Trends and Insights
-
The data reveals contrasting movements between current and deferred tax components. While the current income tax provision experiences significant variability with an overall upward bias, deferred income tax benefits intensify, especially from 2021 through 2023, suggesting increasingly recognized deferred tax assets or adjustments.
The sharp decline in the total provision for income taxes from 2021 to 2023 coincides with the growing deferred tax benefits, indicating that deferred taxes have substantially offset current tax expenses during those years. In 2024, the increase in current tax provision combined with a slight reduction in deferred benefits leads to a recovery in total tax provision, though without reaching the earlier highs.
Overall, these patterns may reflect changes in the company’s taxable income, tax planning strategies, timing differences in income recognition, or adjustments related to tax law changes over the period.
Effective Income Tax Rate (EITR)
Thermo Fisher Scientific Inc., effective income tax rate (EITR) reconciliation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Statutory federal income tax rate | ||||||
| Effective income tax rate |
Based on: 10-K (reporting date: 2024-12-31), 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).
- Statutory Federal Income Tax Rate
- The statutory federal income tax rate remained constant at 21% throughout the years from 2020 to 2024, indicating stability in the tax legislation applicable to the company over this period.
- Effective Income Tax Rate
- The effective income tax rate exhibited a downward trend from 2020 to 2023. It started at 11.76% in 2020, increased slightly to 12.54% in 2021, then declined notably to 8.97% in 2022 and further dropped to 4.51% in 2023. In 2024, the rate increased again to 9.34%. This pattern suggests the company experienced varying tax advantages, credits, or deductions over the period, leading to effective tax rates significantly lower than the statutory rate. The marked decrease until 2023 may reflect optimized tax planning or changes in the composition of taxable income, while the increase in 2024 indicates some reversal or reduction in these factors.
Components of Deferred Tax Assets and Liabilities
Thermo Fisher Scientific Inc., components of deferred tax assets and liabilities
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data exhibit several notable trends over the period presented. Depreciation and amortization expense increased significantly from 2020 to 2021, peaking at approximately $4.7 billion, followed by a gradual decline through 2024, suggesting initial heavy capital expenditure or acquisition activity with subsequent stabilization.
Net operating loss and credit carryforwards show a consistent upward trajectory, increasing from around $1.7 billion in 2020 to nearly $2.9 billion in 2024. This growth may indicate accumulating tax benefits or deferred tax assets available to offset future taxable income.
Reserves and accruals remain relatively stable across the years, fluctuating within a narrow range between approximately $140 million and $164 million, reflecting consistent liability estimations without significant volatility.
Accrued compensation experiences moderate growth, increasing from $253 million in 2020 to $318 million in 2024, which could be attributed to workforce expansion, salary increments, or changes in compensation structures.
Inventory basis difference demonstrates some fluctuation, rising sharply from $112 million in 2020 to $364 million in 2022, followed by a decrease and slight recovery towards $309 million in 2024. This pattern might result from changes in inventory valuation methods or adjustments following acquisitions.
Deferred interest reveals a substantial increase from $227 million in 2020 to a peak of $753 million in 2023, before declining to $534 million in 2024. This volatility could be associated with debt restructuring, variable interest accruals, or financing activities.
Research and development and other capitalized costs appear only from 2022 onward, showing rapid growth from $220 million to $536 million by 2024, indicating increased capitalization of development expenditures and possibly intensified R&D activities.
Unrealized gains and losses on hedging instruments shift from a positive $242 million in 2020 to increasingly negative values, reaching a low of $-363 million in 2024. This trend suggests adverse market movements impacting hedging positions, leading to greater unrealized losses over time.
Contract liabilities data is available only for 2023 and 2024, rising from $130 million to $280 million. This increase implies growing unearned revenue or customer deposits, which may forecast revenue recognition in future periods.
The category "Other, net" exhibits considerable variability, climbing from $124 million in 2020 to $435 million in 2022, then decreasing significantly to $148 million by 2024, indicating fluctuating miscellaneous items that impact the balance sheet or income statement unpredictably.
Deferred tax assets and liabilities, net before valuation allowance, move from negative values in 2020 and 2021 toward positive levels by 2023 and 2024, reflecting improving deferred tax asset positions or reduced liabilities.
Valuation allowance increases in magnitude from negative $933 million in 2020 to negative $1.3 billion around 2022 and 2023, before decreasing to approximately negative $1.0 billion in 2024. This pattern indicates conservative assessments of realizability of deferred tax assets, with some recovery in the latest period.
The net deferred tax assets and liabilities, factoring in valuation allowances, display a significant negative balance throughout but show improvement from negative $2.8 billion in 2021 to a reduced negative $338 million in 2024, implying a strengthening net deferred tax asset position over time.
Deferred Tax Assets and Liabilities, Classification
Thermo Fisher Scientific Inc., deferred tax assets and liabilities, classification
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Deferred tax assets | ||||||
| Deferred tax liabilities |
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data reveals notable fluctuations in both deferred tax assets and deferred tax liabilities over the analyzed period.
- Deferred Tax Assets
-
There is an initial increase in deferred tax assets from 689 million US dollars as of December 31, 2020 to a peak of 1008 million US dollars by the end of 2021. However, following this peak, deferred tax assets show a decline to 865 million US dollars in 2022 and continue a modest downward trend to 831 million in 2023. The figure rises again to 930 million by the end of 2024, indicating a partial recovery but still remaining below the 2021 peak level.
- Deferred Tax Liabilities
-
Deferred tax liabilities exhibit a significant increase from 1794 million US dollars in 2020 to a high point of 3837 million in 2021, more than doubling within one year. Subsequently, there is a marked reduction to 2849 million in 2022, continuing downward to 1922 million in 2023, and further decreasing to 1268 million by the end of 2024. This downward trajectory after the 2021 peak suggests an ongoing effort or occurrence that reduces tax liabilities over the latter three years.
The observed trends suggest a substantial rise and subsequent normalization within one year for both deferred tax assets and liabilities, with liabilities experiencing a more pronounced volatility. The continual decrease in deferred tax liabilities after 2021 coupled with the moderate fluctuations in deferred tax assets potentially reflects changes in the company’s tax position, tax planning strategies, or shifts in underlying temporary differences affecting deferred tax computation. The partial recovery in deferred tax assets by 2024 indicates some renewal of temporary differences or revaluation effects, whereas deferred tax liabilities show a clear downward correction toward a more conservative level.
Adjustments to Financial Statements: Removal of Deferred Taxes
Thermo Fisher Scientific Inc., adjustments to financial statements
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data exhibits several notable trends over the five-year period from December 31, 2020, to December 31, 2024.
- Total Assets
- Reported total assets increased significantly from 69,052 million USD in 2020 to 95,123 million USD in 2021, indicating a substantial growth year-over-year. Subsequently, total assets showed a slower growth rate, reaching a peak of 98,726 million USD in 2023 before a slight decline to 97,321 million USD in 2024. Adjusted total assets display a similar trajectory, with growth from 68,363 million USD in 2020 to 94,115 million USD in 2021, then gradually increasing to 97,895 million USD in 2023, and finally experiencing a marginal decrease to 96,391 million USD in 2024.
- Total Liabilities
- Reported total liabilities rose markedly from 34,535 million USD in 2020 to 54,146 million USD in 2021, followed by a gradual decline in subsequent years to 47,650 million USD in 2024. This suggests an initial increase in obligations or financing, which was progressively reduced. Adjusted total liabilities followed a parallel pattern, increasing from 32,741 million USD in 2020 to 50,309 million USD in 2021, then steadily decreasing to 46,382 million USD in 2024.
- Shareholders’ Equity
- Reported shareholders’ equity showed consistent growth throughout the period, rising from 34,507 million USD in 2020 to 49,584 million USD in 2024. Adjusted shareholders’ equity also increased steadily from 35,612 million USD to 49,922 million USD over the same time frame. This consistent upward trend suggests sustained value creation and retained earnings accumulation despite fluctuations in liabilities and assets.
- Net Income
- Reported net income attributable to the company demonstrated an initial increase from 6,375 million USD in 2020 to 7,725 million USD in 2021. However, it declined thereafter, reaching a low of 5,995 million USD in 2023 before a modest recovery to 6,335 million USD in 2024. Adjusted net income showed a similar pattern but with more pronounced decreases, falling from 6,106 million USD in 2020 to 4,695 million USD in 2023, then slightly recovering to 5,126 million USD in 2024. This pattern points to earnings volatility and potential underlying operational or market challenges affecting profitability.
Thermo Fisher Scientific Inc., Financial Data: Reported vs. Adjusted
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Thermo Fisher Scientific Inc., adjusted financial ratios
Based on: 10-K (reporting date: 2024-12-31), 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).
The financial data exhibits several notable trends across the reported and adjusted figures over the five-year period. A careful analysis reveals changes in profitability, asset efficiency, leverage, and returns.
- Profitability Margins
- Both reported and adjusted net profit margins demonstrate a declining trend from 2020 through 2023, with reported margins decreasing from 19.79% to 13.99% and adjusted margins from 18.95% to 10.96%. In 2024, both margins show a slight recovery, rising to 14.77% and 11.95%, respectively. The adjusted margins consistently remain below the reported margins, indicating adjustments likely reducing the profit attributable to core operations.
- Asset Turnover
- The reported total asset turnover ratio exhibits minor fluctuations, decreasing from 0.47 in 2020 to 0.41 in 2021, then rebounding to 0.46 in 2022, before settling at 0.43 and 0.44 in the subsequent years. The adjusted total asset turnover follows a similar pattern but maintains slightly higher values after 2021 compared to the reported figures, suggesting that adjusted operations might be slightly more efficient in asset utilization.
- Financial Leverage
- Financial leverage shows a declining trend overall, with reported leverage peaking at 2.33 in 2021 and gradually decreasing to 1.96 in 2024. Adjusted leverage mirrors this trend, peaking at 2.16 in 2021 and declining to 1.93 by 2024. The reduction in leverage over time may indicate a deliberate strategy to reduce reliance on debt or optimize the capital structure.
- Return on Equity (ROE)
- Reported ROE declines steadily from 18.47% in 2020 to 12.78% in 2024. Adjusted ROE experiences a more pronounced decrease, from 17.15% to 10.27% over the same period. This more significant contraction in adjusted ROE suggests that non-recurring or tax-related adjustments are materially impacting the equity returns downward.
- Return on Assets (ROA)
- Reported ROA follows a consistent downward path from 9.23% in 2020 to 6.51% in 2024. Adjusted ROA declines more sharply from 8.93% to 5.32%. The broader gap between reported and adjusted ROA over time may reflect the impact of deferred tax adjustments reducing effective asset returns.
Overall, the data reveals that despite some recovery in profit margins in the latest year, profitability and returns ratios are experiencing a general decline in both reported and adjusted terms. Asset efficiency remains relatively stable with minor year-to-year variations. The downward trend in financial leverage suggests conservative financial management or deleveraging. Adjusted figures consistently present a more conservative view of profitability and returns, highlighting the effects of tax-related adjustments on financial performance.
Thermo Fisher Scientific Inc., Financial Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Net profit margin = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Revenues
= 100 × ÷ =
- Reported net income attributable to Thermo Fisher Scientific Inc.
- The reported net income increased from 6375 million USD in 2020 to a peak of 7725 million USD in 2021. It then declined to 6950 million USD in 2022, followed by further decreases in 2023 to 5995 million USD. In 2024, there was a slight recovery to 6335 million USD, indicating a moderate climb after consecutive declines.
- Adjusted net income attributable to Thermo Fisher Scientific Inc.
- The adjusted net income exhibited a similar pattern to the reported net income. It rose from 6106 million USD in 2020 to 7080 million USD in 2021. Subsequently, it decreased to 5953 million USD in 2022 and continued falling to 4695 million USD in 2023. By 2024, adjusted net income improved modestly to 5126 million USD but remained significantly below the 2021 peak.
- Reported net profit margin
- The reported net profit margin showed a gradual downward trend after 2020. Starting at 19.79% in 2020, it marginally decreased to 19.7% in 2021. The margin then declined notably to 15.47% in 2022, followed by further dips to 13.99% in 2023. In 2024, a slight improvement was seen with the margin rising to 14.77% but it remained below early period levels.
- Adjusted net profit margin
- The adjusted net profit margin similarly trended downward over the period. It decreased from 18.95% in 2020 to 18.06% in 2021. The decline was more pronounced in 2022, dropping to 13.25%, and continued into 2023 with a margin of 10.96%. In 2024, the margin edged up to 11.95%, reflecting a minor recovery but still demonstrating a weaker profitability margin compared to previous years.
Adjusted Total Asset Turnover
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= ÷ =
The financial data reveals several notable trends in both the asset base and efficiency metrics over the five-year period.
- Assets
- Reported total assets exhibited a significant increase from US$69,052 million in 2020 to a peak of US$98,726 million in 2023, followed by a slight decline to US$97,321 million in 2024. Adjusted total assets followed a similar trajectory, rising from US$68,363 million in 2020 to a maximum of US$97,895 million in 2023, then declining modestly to US$96,391 million in 2024. The close relationship between reported and adjusted asset figures suggests that deferred income tax adjustments have a relatively small impact on the overall asset base.
- Total Asset Turnover
- Reported total asset turnover ratios decreased from 0.47 in 2020 to 0.41 in 2021, indicating reduced efficiency in utilizing assets to generate revenue. This was followed by a rebound to 0.46 in 2022, then a slight downward adjustment to 0.43 in 2023, and a marginal increase to 0.44 in 2024. Adjusted total asset turnover ratios mirrored these movements closely, starting at 0.47 in 2020, dipping slightly less to 0.42 in 2021, then improving to 0.47 in 2022, and settling at 0.44 for both 2023 and 2024. This pattern suggests some variability in asset efficiency but generally indicates a recovery after the initial decline in 2021.
- Insights
- The expansion in asset size through 2023 may reflect capital investments or acquisitions, with a stabilization or minor contraction in the subsequent year. Despite fluctuations, the asset turnover ratios demonstrate only moderate variations, implying that the company's ability to convert assets into revenue remained relatively stable and efficient over the period. The parallel movement of both reported and adjusted metrics indicates deferred income tax adjustments do not significantly alter the understanding of asset utilization trends.
Adjusted Financial Leverage
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 Financial leverage = Total assets ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= ÷ =
2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity
= ÷ =
- Total Assets
- The reported total assets experienced a significant increase from 69,052 million US dollars in 2020 to a peak of 98,726 million US dollars in 2023, followed by a slight decline to 97,321 million US dollars in 2024. The adjusted total assets showed a similar pattern, rising from 68,363 million US dollars in 2020 to 97,895 million US dollars in 2023, and then decreasing marginally to 96,391 million US dollars in 2024. Overall, the total assets grew steadily over the observed periods, with minor contractions in the final year.
- Shareholders’ Equity
- The reported shareholders’ equity increased consistently each year, rising from 34,507 million US dollars in 2020 to 49,584 million US dollars in 2024. The adjusted shareholders’ equity also followed an upward trajectory, moving from 35,612 million US dollars in 2020 to 49,922 million US dollars in 2024. The equity growth is steady and shows positive trends for the company’s capitalization over time.
- Financial Leverage Ratios
- The reported financial leverage ratio declined gradually from 2.00 in 2020 to 1.96 in 2024, indicating a slight reduction in the company's reliance on debt relative to equity. Similarly, the adjusted financial leverage ratio decreased from 1.92 in 2020 to 1.93 in 2024 with small fluctuations in between, reflecting a relatively stable but slightly lower leverage level compared to the reported figures. The trend suggests ongoing efforts to manage leverage prudently.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 ROE = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total Thermo Fisher Scientific Inc. shareholders’ equity
= 100 × ÷ =
- Net Income Trends
- The reported net income shows an initial increase from 6,375 million USD in 2020 to a peak of 7,725 million USD in 2021, followed by a decline to 5,995 million USD in 2023 before slightly recovering to 6,335 million USD in 2024. Adjusted net income follows a similar but more pronounced downward trajectory, rising from 6,106 million USD in 2020 to 7,080 million USD in 2021, then consistently decreasing to 4,695 million USD in 2023 and modestly increasing to 5,126 million USD in 2024.
- Shareholders’ Equity Trends
- Reported total shareholders’ equity exhibits steady growth over the period, increasing from 34,507 million USD in 2020 to 49,584 million USD in 2024. The adjusted shareholders’ equity also rises consistently, starting at 35,612 million USD in 2020 and reaching 49,922 million USD in 2024, marginally higher than the reported figures for most years.
- Return on Equity (ROE) Trends
- Reported ROE decreases over time, beginning at 18.47% in 2020 and peaking slightly at 18.94% in 2021, then declining steadily to 12.78% by 2024. The adjusted ROE presents a similar declining trend, from 17.15% in 2020 down to 10.27% in 2024, indicating a reduction in profitability relative to adjusted equity over the observed years.
- Overall Analysis
- The data indicate that while the company’s equity base has grown consistently, the profitability as measured by net income and ROE has weakened since its 2021 highs. The adjusted figures, accounting for tax adjustments, suggest a steeper decline in net income and returns than the reported figures, particularly after 2021. This may signify increasing challenges affecting operational efficiency or increased tax-related adjustments impacting reported earnings. The growth in shareholders’ equity suggests ongoing capital strengthening despite these profitability pressures.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2024-12-31), 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).
2024 Calculations
1 ROA = 100 × Net income attributable to Thermo Fisher Scientific Inc. ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income attributable to Thermo Fisher Scientific Inc. ÷ Adjusted total assets
= 100 × ÷ =
- Net Income Trends
- The reported net income attributable to the company increased from 6,375 million USD in 2020 to a peak of 7,725 million USD in 2021, followed by a decline over the subsequent years, reaching 6,335 million USD in 2024. The adjusted net income follows a similar pattern but shows a more pronounced decrease after 2021, dropping from 7,080 million USD to 5,126 million USD by 2024. This indicates that the adjustments to net income have a material impact, particularly in the later years, reflecting possible changes in deferred or non-recurring tax items or other adjustments.
- Total Assets Development
- Reported total assets exhibited substantial growth from 69,052 million USD in 2020 to 97,726 million USD in 2023, before slightly declining to 97,321 million USD in 2024. Adjusted total assets show a comparable trend, increasing from 68,363 million USD in 2020 to a peak of 97,895 million USD in 2023, then marginally decreasing to 96,391 million USD in 2024. The close alignment between reported and adjusted total assets suggests that adjustments have a relatively minor impact on asset valuation.
- Return on Assets (ROA) Observations
- Reported ROA decreased steadily from 9.23% in 2020 to 6.07% in 2023, before a slight recovery to 6.51% in 2024. The adjusted ROA exhibits a similar downward trajectory but at consistently lower levels, falling from 8.93% to 4.8% by 2023 and rising modestly to 5.32% in 2024. This pattern implies that adjustments related to income tax or other factors reduce the effective profitability relative to assets, particularly during the years following 2021.
- General Insights
- The data reflects a post-2021 period characterized by decreasing profitability as measured by both reported and adjusted net incomes and ROA performance, despite stable or growing asset bases. The widened gap over time between reported and adjusted figures, especially in net income and ROA, underscores the significance of deferred or adjusted tax impacts on the company's financial results. The maintenance of asset levels combined with declining returns suggests potential pressures on operational efficiency or increased tax burdens that affect the adjusted bottom-line outcomes.