Comcast Corp. (NASDAQ:CMCSA)

The composition of goodwill and intangible assets exhibits distinct trends over the five-year period. A notable decrease in goodwill is observed initially, followed by relative stabilization and a slight increase in later years. Intangible assets, while substantial, demonstrate an overall declining trend, driven primarily by the amortization of finite-lived assets.

Goodwill

Goodwill experienced a significant reduction from US$70,189 million in 2021 to US$58,494 million in 2022. Subsequent years show a more moderate fluctuation, increasing to US$59,268 million in 2023, decreasing slightly to US$58,209 million in 2024, and then rising to US$61,502 million in 2025. This suggests potential impairment charges in 2022, followed by a period of relative stability with a modest recovery towards the end of the period.

Indefinite-Lived Intangible Assets

The value of indefinite-lived intangible assets, encompassing franchise rights and FCC licenses, remained remarkably consistent throughout the period, holding steady at approximately US$62.2 billion. Franchise rights consistently accounted for the vast majority of this category, remaining at US$59.4 billion annually. FCC licenses also remained stable at US$2.8 billion.

Finite-Lived Intangible Assets

Finite-lived intangible assets, categorized as customer relationships, software, and other agreements and rights, show a more dynamic pattern. The gross carrying amount increased from US$54,318 million in 2021 to US$59,000 million in 2025. However, accumulated amortization increased substantially, from negative US$23,545 million to negative US$39,400 million over the same period. Consequently, the net book value of finite-lived intangible assets decreased from US$30,773 million in 2021 to US$19,600 million in 2025, indicating significant amortization expense impacting the reported value.

Overall Intangible Assets

Total intangible assets decreased from US$92,945 million in 2021 to US$81,800 million in 2025. This decline is primarily attributable to the net decrease in finite-lived intangible assets, despite the relative stability of indefinite-lived assets. The combined value of goodwill and intangible assets followed a similar downward trajectory, decreasing from US$163,134 million in 2021 to US$143,302 million in 2025.

The consistent amortization of finite-lived intangible assets is a key factor influencing the overall trend. The initial reduction in goodwill, coupled with ongoing amortization, suggests a conservative approach to recognizing and maintaining the value of these assets on the balance sheet.

The financial information reveals a significant adjustment related to goodwill and intangible assets, impacting reported asset and equity values. A consistent reduction in total assets is observed when comparing reported figures to adjusted figures across the five-year period. This adjustment appears to stem from the removal of goodwill, resulting in substantially lower adjusted asset values.

Total Assets

Reported total assets decreased from US$275,905 million in 2021 to US$257,275 million in 2022, before increasing to US$272,631 million in 2025. However, the adjusted total assets demonstrate a more stable, albeit lower, trajectory, ranging from US$198,781 million to US$211,129 million over the same period. The difference between reported and adjusted assets widens initially, then narrows slightly, indicating a consistent, material impact from the goodwill adjustment.

Shareholders’ Equity

Similar to total assets, reported shareholders’ equity experienced volatility, declining from US$96,092 million in 2021 to US$80,943 million in 2022, and then increasing to US$96,903 million in 2025. The adjusted shareholders’ equity shows a considerably lower base and a more pronounced growth trend, increasing from US$25,903 million in 2021 to US$35,401 million in 2025. This suggests the goodwill removal significantly impacts the equity position as reported.

Net Income

Reported net income attributable to the corporation fluctuates, with a substantial decrease from US$14,159 million in 2021 to US$5,370 million in 2022, followed by recovery and growth to US$19,998 million in 2025. Notably, the adjusted net income remains identical to the reported net income throughout the period. This indicates that the goodwill adjustment does not directly affect the reported earnings.

The consistent difference between reported and adjusted figures for both total assets and shareholders’ equity highlights the substantial impact of goodwill on the company’s financial statements. While the removal of goodwill does not alter reported net income, it significantly reduces the reported size of the balance sheet. The increasing trend in adjusted shareholders’ equity suggests that underlying business performance is contributing to equity growth independent of goodwill.

The financial performance metrics demonstrate a significant impact from the adjustment for goodwill and intangible assets. Reported ratios generally exhibit more moderate fluctuations compared to their adjusted counterparts, suggesting that goodwill constitutes a substantial portion of the company’s reported assets. A consistent pattern emerges where adjusting for goodwill leads to substantially higher values for profitability and leverage ratios, while asset turnover experiences a moderate increase.

Profitability

Reported net profit margin initially declined from 2021 to 2022, then demonstrated a consistent upward trend through 2025. However, the adjusted net profit margin remained relatively stable between 2021 and 2022, and mirrored the upward trend of the reported margin from 2022 onwards. The difference between reported and adjusted net profit margins is minimal, indicating that the impact of goodwill on net income is not substantial. Reported ROE experienced a significant drop in 2022 before recovering and increasing through 2025. Conversely, adjusted ROE remained consistently high throughout the period, exhibiting a peak in 2023 and a slight decline in subsequent years. Similarly, reported ROA showed a decline in 2022 followed by an increase, while adjusted ROA remained consistently higher and demonstrated a steady upward trend. These differences highlight the considerable influence of goodwill on reported profitability metrics.

Asset Turnover

Reported total asset turnover remained relatively stable between 2021 and 2025, fluctuating between 0.42 and 0.47. The adjusted total asset turnover consistently exceeded the reported value, and also exhibited relative stability, increasing from 0.57 in 2021 to 0.59 in 2023 and remaining at that level through 2025. This suggests that removing goodwill from the asset base results in a more efficient utilization of remaining assets, as measured by revenue generated per dollar of assets.

Financial Leverage

Reported financial leverage showed a slight increase from 2021 to 2023, followed by a decrease in 2024 and 2025. Adjusted financial leverage, however, exhibited a much more pronounced pattern. It increased significantly from 7.94 in 2021 to 8.85 in 2022, then decreased steadily through 2025 to 5.96. The substantial difference between reported and adjusted leverage underscores the significant contribution of goodwill to the company’s total asset base and, consequently, its reported leverage. The decreasing trend in adjusted leverage from 2022 to 2025 suggests a reduction in the reliance on goodwill-inclusive assets for financing.

In summary, the adjustments for goodwill and intangible assets reveal a substantially different financial picture than the reported figures. The adjusted ratios indicate a more profitable, efficient, and leveraged operation, highlighting the considerable impact of goodwill on the company’s reported financial position. The trends suggest a potential shift in asset composition and financing strategy over the observed period.

The period under review demonstrates fluctuations in both reported and adjusted net income, with corresponding impacts on net profit margins. While both metrics generally trend upwards, notable variations exist, particularly in 2022.

Reported Net Income & Margin

Reported net income attributable to Comcast Corporation decreased significantly from US$14,159 million in 2021 to US$5,370 million in 2022, before recovering and increasing steadily through 2025, reaching US$19,998 million. This volatility is reflected in the reported net profit margin, which declined from 12.17% in 2021 to a low of 4.42% in 2022. Subsequent years show improvement, with the margin rising to 16.17% by 2025.

Adjusted Net Income & Margin

Adjusted net income exhibits a different pattern. While mirroring the overall upward trend from 2022 to 2025, the decline from 2021 to 2022 is less pronounced than that of reported net income, falling from US$14,159 million to US$13,470 million. Consequently, the adjusted net profit margin demonstrates greater stability, decreasing to 11.09% in 2022 but remaining comparatively higher than the reported margin. The adjusted net profit margin also reaches 16.17% in 2025, aligning with the reported margin.

Relationship Between Reported and Adjusted Metrics

The divergence between reported and adjusted net income and margins in 2022 suggests the presence of non-recurring items or accounting adjustments impacting the reported figures. The adjusted figures provide a clearer view of underlying operational performance by excluding these items. From 2023 onwards, the reported and adjusted net income and margins converge, indicating a stabilization of the factors causing the initial discrepancy. The consistency between the two metrics in the later years suggests a more representative portrayal of the company’s profitability.

Overall Trend

An overall upward trend in both reported and adjusted net profit margins is observed from 2022 to 2025. This indicates improving profitability over the period, despite the initial downturn in 2022. The convergence of reported and adjusted margins in the later years suggests a strengthening of core business performance and reduced influence from one-time events.

An examination of the financial information reveals distinct trends in asset utilization over the five-year period. Reported total assets experienced a decrease from 2021 to 2022, followed by moderate increases in subsequent years. However, adjusted total assets, which exclude goodwill and intangible assets, demonstrate a more consistent upward trajectory throughout the period.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio exhibits a generally stable pattern. It increased from 0.57 in 2021 to a peak of 0.61 in 2022, then leveled off at 0.59 for the years 2023, 2024, and 2025. This suggests a consistent level of revenue generation relative to the company’s assets when goodwill and intangibles are excluded from the asset base. The stability indicates efficient utilization of core operating assets.

In contrast to the adjusted ratio, the reported total asset turnover ratio shows less consistency. While fluctuating between 0.42 and 0.47, it does not demonstrate a clear upward or downward trend. This difference between the reported and adjusted ratios highlights the impact of goodwill and intangible assets on overall asset turnover. The presence of these items reduces the reported turnover compared to the performance of the tangible asset base.

Asset Base Composition

The difference between reported and adjusted total assets widens slightly over the period, indicating a relative increase in the proportion of goodwill and intangible assets within the overall asset structure. In 2021, adjusted assets represented approximately 74.6% of reported assets, while in 2025, this figure rose to approximately 77.7%. This shift suggests a growing reliance on non-physical assets for the company’s overall valuation.

The sustained adjusted total asset turnover ratio, coupled with the increasing proportion of goodwill and intangible assets, suggests that the company effectively utilizes its core operating assets to generate revenue. However, the impact of these non-physical assets on the reported asset turnover warrants continued monitoring to assess their contribution to overall financial performance.

An examination of the financial information reveals notable trends in both reported and adjusted asset and equity figures, impacting calculated financial leverage ratios. Reported total assets experienced a decrease from 2021 to 2022, followed by a period of modest growth through 2025. Conversely, adjusted total assets demonstrate a similar initial decline, with subsequent growth that is less pronounced than the reported figures. Shareholders’ equity, based on reported values, also decreased between 2021 and 2022 before exhibiting a recovery and growth trend. However, adjusted shareholders’ equity shows a more substantial increase, particularly in the later years of the observed period.

Reported Financial Leverage

Reported financial leverage initially increased from 2.87 in 2021 to 3.20 in 2023, before decreasing to 2.81 by 2025. This suggests a fluctuating relationship between reported assets and equity, with a slight overall reduction in leverage over the five-year period. The peak in 2023 coincides with the lowest reported shareholders’ equity value.

Adjusted Financial Leverage

Adjusted financial leverage presents a significantly different pattern. It rose sharply from 7.94 in 2021 to 8.85 in 2022, remaining relatively high at 8.77 in 2023. A substantial decrease is then observed, falling to 5.96 by 2025. This decline correlates with the increasing trend in adjusted shareholders’ equity and the more moderate growth in adjusted total assets. The magnitude of the adjusted leverage ratio indicates a considerably different capital structure assessment when goodwill and intangible assets are factored out.

The divergence between reported and adjusted financial leverage highlights the impact of goodwill and intangible assets on the company’s capital structure. The substantial difference in leverage ratios suggests that a significant portion of the reported asset base is comprised of these items. The decreasing trend in adjusted financial leverage, while reported leverage remains relatively stable, indicates that the company is improving its financial position when these items are excluded from the calculation. The growth in adjusted shareholders’ equity further supports this conclusion.

Asset and Equity Adjustments

The difference between reported and adjusted total assets decreased from US$69,189 million in 2021 to US$55,109 million in 2025. This suggests a potential reduction in the relative proportion of goodwill and intangible assets within the total asset base. Similarly, the difference between reported and adjusted shareholders’ equity increased significantly from US$69,189 million in 2021 to US$61,502 million in 2025, indicating a growing disparity between the reported and economically relevant equity positions.

In summary, the analysis reveals a complex interplay between reported and adjusted financial metrics. While reported leverage remains relatively stable, adjusted leverage demonstrates a notable downward trend, suggesting improved financial health when considering a more conservative asset valuation. The increasing difference in equity adjustments warrants further investigation into the nature and valuation of goodwill and intangible assets.

The period between 2021 and 2025 demonstrates significant fluctuations in reported and adjusted financial performance. Reported net income attributable to Comcast Corporation experienced a substantial decrease from 2021 to 2022, followed by a recovery and continued growth through 2025. Shareholders’ equity, as reported, exhibited a decline from 2021 to 2022, followed by a period of moderate growth. However, the adjusted figures for both net income and shareholders’ equity reveal a markedly different picture, with substantial differences compared to the reported values, particularly in equity.

Reported Return on Equity (ROE)

Reported ROE decreased considerably from 14.73% in 2021 to 6.63% in 2022, coinciding with the decline in reported net income and shareholders’ equity. A strong recovery was then observed, with ROE increasing to 18.61% in 2023, 18.92% in 2024, and reaching 20.64% in 2025. This upward trend aligns with the subsequent increases in reported net income.

Adjusted Return on Equity (ROE)

Adjusted ROE remained consistently high throughout the period, beginning at 54.66% in 2021. It peaked at 60.00% in 2022, despite the decrease in adjusted net income, due to a more significant decrease in adjusted shareholders’ equity. Adjusted ROE then decreased to 65.66% in 2023, 59.20% in 2024, and 56.49% in 2025. The fluctuations in adjusted ROE appear to be more sensitive to changes in adjusted shareholders’ equity than to changes in adjusted net income.

The divergence between reported and adjusted ROE is substantial. The adjusted ROE figures are significantly higher than the reported ROE figures in each year, indicating that the adjustments made to net income and shareholders’ equity have a considerable impact on the calculated return. The adjusted shareholders’ equity is considerably lower than the reported shareholders’ equity, suggesting the adjustments involve significant reductions, potentially related to goodwill or intangible assets. The trend in adjusted ROE suggests that while profitability remains strong, the underlying equity base, as defined by the adjustments, is experiencing changes that warrant further investigation.

Shareholders’ Equity Discrepancy

The difference between reported and adjusted shareholders’ equity is noteworthy. Reported shareholders’ equity shows a relatively stable trend after the initial decline in 2022, while adjusted shareholders’ equity demonstrates a more pronounced growth pattern, increasing substantially from 2023 to 2025. This suggests that the adjustments are progressively reducing the reported equity base, potentially reflecting impairments or write-downs of assets. The increasing gap between the two equity measures highlights the importance of understanding the nature of these adjustments.

In conclusion, while reported financial metrics indicate a recovery and growth trajectory, the adjusted figures reveal a different perspective, emphasizing the impact of adjustments to net income and shareholders’ equity on overall profitability assessment. The substantial difference between reported and adjusted ROE, coupled with the evolving discrepancy in shareholders’ equity, suggests a need for detailed scrutiny of the adjustments made to these figures.

The period between 2021 and 2025 demonstrates fluctuating financial performance when considering both reported and adjusted metrics. Reported net income experienced a significant decline from 2021 to 2022, followed by a recovery and subsequent growth through 2025. Adjusted net income shows a more moderate fluctuation, with a decrease in 2022 but consistent growth thereafter. Total assets, both reported and adjusted, generally remained stable with a slight upward trend over the five-year period.

Reported Return on Assets (ROA)

Reported ROA decreased substantially from 5.13% in 2021 to 2.09% in 2022, coinciding with the decline in reported net income. A consistent upward trend is then observed, increasing to 7.34% by 2025. This suggests a strengthening of profitability relative to the reported asset base in the later years of the period.

Adjusted Return on Assets (ROA)

Adjusted ROA exhibited a more stable pattern compared to its reported counterpart. It began at 6.88% in 2021, experienced a slight decrease to 6.78% in 2022, and then steadily increased to 9.47% in 2025. This consistent growth indicates improving profitability when considering the adjusted asset base. The difference between reported and adjusted ROA suggests that adjustments to total assets significantly impact the calculated return.

The divergence between reported and adjusted ROA highlights the impact of goodwill and intangible assets. The adjusted ROA, calculated using adjusted total assets, consistently exceeds the reported ROA. This implies that the inclusion of goodwill and intangible assets in the reported total assets depresses the reported ROA. The increasing gap between the two ROA figures over time suggests that the impact of these adjustments is becoming more pronounced. The consistent growth in adjusted ROA, despite fluctuations in reported net income, indicates a potentially stronger underlying operational performance when excluding the influence of these items.

The trend in adjusted ROA suggests an increasing efficiency in generating profits from the core assets of the business. The company appears to be effectively utilizing its adjusted asset base to drive profitability, as evidenced by the consistent upward movement in this metric.