Comcast Corp. (NASDAQ:CMCSA)

The income tax expense exhibited fluctuating behavior over the five-year period. Current income tax expense generally increased from 2021 to 2023, followed by declines in 2024 and 2025. Deferred tax expense or benefit demonstrated significant volatility, shifting from expense to benefit and back again during the observed timeframe.

Current Income Tax Expense

Current income tax expense increased substantially from US$3,367 million in 2021 to US$8,110 million in 2023, representing a more than doubling of the expense. This was followed by a considerable decrease to US$3,698 million in 2024 and a slight decrease to US$3,432 million in 2025. The fluctuations suggest a correlation with changes in pre-tax income, though further investigation would be required to confirm this relationship.

Deferred Income Tax Expense (Benefit)

Deferred tax expense transitioned to a benefit in 2022, with a value of negative US$834 million. This benefit expanded in 2023 to negative US$2,739 million, indicating a significant reduction in deferred tax liabilities or an increase in deferred tax assets. The deferred tax position reversed again in 2024, becoming a negative expense of US$902 million, and then shifted to a substantial benefit of US$2,674 million in 2025. This volatility suggests changes in temporary differences between book and tax bases of assets and liabilities, or changes in tax planning strategies.

Total Income Tax Expense

Total income tax expense mirrored the combined effect of the current and deferred components. It rose from US$5,259 million in 2021 to US$5,371 million in 2023, with a peak in 2023. A substantial decline occurred in 2024 to US$2,796 million, followed by a significant increase to US$6,106 million in 2025. The overall trend indicates a complex interplay between current and deferred tax items, resulting in considerable year-over-year variation.

The substantial fluctuations in both current and deferred tax components warrant further investigation to understand the underlying drivers. A detailed analysis of the company’s pre-tax income, temporary differences, and tax planning strategies is recommended to provide a more comprehensive understanding of these trends.

The effective income tax rate exhibits considerable fluctuation over the observed period. While the federal statutory tax rate remained constant at 21.00% throughout the years presented, the effective tax rate demonstrates significant variance, suggesting influences beyond the standard corporate tax structure.

Effective Tax Rate Trend

In 2021, the effective tax rate was 27.54%, exceeding the statutory rate. This indicates the presence of factors increasing the tax burden, such as non-deductible expenses or state taxes. A substantial increase to 46.95% occurred in 2022, representing a significant rise in the proportion of pre-tax income paid as taxes. The rate then decreased considerably to 26.20% in 2023, remaining above the statutory rate but lower than the prior year. A marked decline to 15.00% was observed in 2024, falling well below the statutory rate. Finally, the effective tax rate increased to 23.70% in 2025, moving closer to, but still below, the 2021 and 2023 levels.

The large swing in the effective tax rate, particularly the increase in 2022 and the decrease in 2024, warrants further investigation. Potential causes could include changes in the mix of income sources (e.g., international income taxed at different rates), the recognition of tax benefits or liabilities, or alterations in tax legislation impacting specific deductions or credits. The deviation from the statutory rate in each year suggests the influence of these factors is consistently present, but their magnitude varies considerably.

Variance from Statutory Rate

The consistent difference between the effective and statutory rates highlights the importance of considering factors beyond the standard 21% when assessing the company’s tax obligations. The largest positive variance occurred in 2022, while the largest negative variance was in 2024. These variances suggest significant, year-over-year changes in the composition of taxable income or the application of tax laws.

Continued monitoring of the effective tax rate and its underlying drivers is recommended to understand the long-term implications for the company’s financial performance and tax planning strategies.

The composition of deferred tax assets and liabilities exhibits notable shifts over the five-year period. A consistent increase is observed in net operating loss and other loss carryforwards, rising from US$3,194 million in 2021 to US$5,278 million in 2025. The emergence of an 'Advance on sale of investment' component in 2023, peaking at US$2,437 million in 2024, contributes to the growth of gross deferred tax assets. Nondeductible accruals and other items also demonstrate a steady upward trend, increasing from US$3,246 million to US$4,493 million. However, the valuation allowance against deferred tax assets has increased at a faster rate, offsetting some of the gains from these increases.

Gross Deferred Tax Assets

Gross deferred tax assets nearly doubled over the period, increasing from US$6,440 million in 2021 to US$11,084 million in 2024, before decreasing to US$9,771 million in 2025. This growth is primarily driven by the increases in net operating loss carryforwards and nondeductible accruals, with a significant contribution from the advance on sale of investment in 2023 and 2024.

Valuation Allowance

The valuation allowance against deferred tax assets has consistently increased each year, moving from a negative US$2,907 million in 2021 to a negative US$5,271 million in 2025. This suggests a growing uncertainty regarding the realization of the deferred tax assets, despite their overall increase. The rate of increase in the valuation allowance accelerated in later years.

Net Deferred Tax Assets

Consequently, net deferred tax assets increased from US$3,533 million in 2021 to US$6,586 million in 2024, but then decreased to US$4,500 million in 2025. This fluctuation reflects the interplay between the growth in gross deferred tax assets and the increasing valuation allowance.

On the liability side, deferred tax liabilities are overwhelmingly driven by items related to property and equipment, intangible assets, and debt. Property and equipment and intangible assets consistently represent the largest component of deferred tax liabilities, remaining relatively stable around negative US$29 million to negative US$30 million. Investments and debt contribute smaller, but consistent, negative amounts. The 'Other' category shows some volatility, increasing to a negative US$148 million in 2025. Overall, deferred tax liabilities have remained relatively stable, fluctuating between negative US$31,704 million and negative US$33,292 million.

Net Deferred Tax Position

The net deferred tax position, representing the difference between net deferred tax liabilities and assets, is a net liability throughout the period. It has fluctuated between negative US$25,118 million and negative US$29,759 million. The net deferred tax liability increased from negative US$25,118 million in 2024 to negative US$27,652 million in 2025, driven by the decrease in net deferred tax assets and relatively stable deferred tax liabilities.

In summary, while gross deferred tax assets have grown, the increasing valuation allowance indicates a more conservative view on their realizability. The overall position remains a substantial net deferred tax liability, primarily related to fixed assets and debt.

The deferred tax asset balance decreased significantly from 2021 to 2023, before exhibiting a modest increase in subsequent years. Conversely, deferred tax liabilities demonstrated a general decreasing trend from 2021 to 2024, followed by an increase in 2025. The magnitude of the deferred tax liabilities consistently and substantially exceeds that of the deferred tax assets throughout the observed period.

Deferred Tax Assets

The deferred tax asset balance began at US$282 million in 2021. A substantial decrease was observed in 2022, falling to US$205 million, and continued to decline to US$109 million by 2023. The balance remained constant at US$109 million in 2024, then increased to US$136 million in 2025. This suggests a potential shift in the realizability of temporary differences giving rise to these assets, or changes in tax planning strategies.

Deferred Tax Liabilities

Deferred tax liabilities started at US$30,041 million in 2021. A decrease to US$28,714 million was recorded in 2022, followed by further reductions to US$26,003 million in 2023 and US$25,227 million in 2024. However, the balance increased to US$27,788 million in 2025. This pattern could be attributed to changes in taxable temporary differences, or adjustments to applicable tax rates.

Net Deferred Tax Position

The net deferred tax position (liabilities less assets) is overwhelmingly negative throughout the period. The difference between liabilities and assets widened from US$29,759 million in 2021 to US$28,509 million in 2022, then to US$25,900 million in 2023 and US$25,118 million in 2024. In 2025, the difference increased to US$27,652 million. This indicates a significant future tax obligation relative to deferred tax benefits.

The fluctuations in both deferred tax assets and liabilities warrant further investigation to understand the underlying causes and potential impacts on future tax expense and cash flows. The consistent dominance of deferred tax liabilities suggests a substantial portion of future taxable income is expected to be higher than reported income.

The financial information reveals significant adjustments related to deferred tax assets and liabilities between 2021 and 2025. These adjustments impact reported financial positions and performance metrics, notably total assets, total liabilities, shareholders’ equity, and net income. A consistent pattern emerges where adjusted figures differ substantially from reported figures, suggesting a material effect from the removal or revaluation of deferred tax items.

Total Assets

Reported total assets decreased from $275,905 million in 2021 to $257,275 million in 2022, before increasing to $266,211 million by 2024 and $272,631 million in 2025. However, the adjusted total assets show a smaller initial decrease, remaining relatively stable between $257,070 million and $272,495 million throughout the period. The difference between reported and adjusted assets is consistently around $800 to $2,000 million, indicating a substantial deferred tax asset or liability impacting the reported value.

Total Liabilities

Reported total liabilities experienced a slight decrease from $177,896 million in 2021 to $175,236 million in 2022, followed by an increase to $181,344 million in 2023 and a decrease to $175,256 million in 2025. The adjusted total liabilities demonstrate a more pronounced decrease from $147,855 million in 2021 to $146,522 million in 2022, with a subsequent increase to $154,709 million in 2024 and a decrease to $147,468 million in 2025. The gap between reported and adjusted liabilities is significant, ranging from approximately $30,000 million to $34,000 million, suggesting a considerable deferred tax liability being removed from the adjusted figures.

Shareholders’ Equity

Reported shareholders’ equity declined from $96,092 million in 2021 to $80,943 million in 2022, then showed modest growth to $96,903 million by 2025. Adjusted shareholders’ equity, however, exhibits a different trend, increasing from $125,851 million in 2021 to $124,555 million in 2025, with fluctuations in between. The substantial difference between reported and adjusted equity, consistently exceeding $40,000 million, reinforces the impact of deferred tax adjustments on the equity position.

Net Income

Reported net income attributable to the corporation fluctuated over the period, starting at $14,159 million in 2021, decreasing to $5,370 million in 2022, increasing to $15,388 million in 2023, $16,192 million in 2024, and reaching $19,998 million in 2025. The adjusted net income also shows variability, but consistently exceeds the reported net income in 2021, 2023, 2024 and 2025. The largest difference is observed in 2021 and 2025, with adjusted net income being approximately $1,900 million and $2,674 million higher, respectively. This suggests that the removal of deferred tax expenses or the recognition of deferred tax benefits positively impacts the adjusted net income.

In summary, the adjustments made for deferred taxes have a material impact on all reported financial statement line items. The consistent differences between reported and adjusted figures indicate a significant deferred tax position that is being re-evaluated or removed, leading to substantial changes in the reported financial position and performance. The adjustments result in a stronger balance sheet and higher net income when deferred taxes are removed.

The financial performance, as indicated by a set of key ratios, exhibits notable differences when deferred tax effects are removed from the calculations. Generally, the adjusted ratios present a more conservative view of profitability and returns compared to the reported figures. Several trends emerge when examining the period between 2021 and 2025.

Profitability

Reported net profit margin demonstrates volatility, declining significantly in 2022 before recovering and increasing steadily through 2025. The adjusted net profit margin mirrors this pattern, though the magnitude of the changes is generally lower. The difference between reported and adjusted margins suggests that deferred tax assets or liabilities are having a material impact on reported earnings, particularly in 2022. The gap between the two margins widens in 2025, indicating a larger influence from deferred taxes on reported profitability.

Asset Utilization & Leverage

Both reported and adjusted total asset turnover ratios remain relatively stable throughout the period, fluctuating around 0.46. This indicates consistent efficiency in generating sales from its asset base, irrespective of deferred tax adjustments. Reported financial leverage initially increases from 2021 to 2022, then plateaus, and finally decreases in 2025. The adjusted financial leverage shows a similar trend, but at lower levels, suggesting that deferred taxes contribute to a higher reported leverage ratio. The reduction in adjusted leverage in 2025 aligns with the decreasing reported leverage.

Returns

Reported Return on Equity (ROE) follows a similar pattern to the net profit margin, with a substantial drop in 2022 followed by a recovery and growth through 2025. The adjusted ROE, however, exhibits a less pronounced fluctuation. The difference between reported and adjusted ROE is most significant in 2022 and 2025, again highlighting the impact of deferred taxes on equity returns. A comparable pattern is observed in Return on Assets (ROA). Reported ROA declines in 2022, then increases steadily, while the adjusted ROA shows a more moderate increase. The adjusted ROA consistently remains below the reported ROA, indicating that deferred taxes inflate the reported asset returns.

In summary, the removal of deferred tax effects generally lowers the reported profitability and returns. The impact of deferred taxes appears to be most significant in 2022 and 2025, influencing both the net profit margin and the returns on equity and assets. Asset utilization and financial leverage are less affected by the adjustments, suggesting that deferred taxes primarily impact the income statement and, consequently, the profitability ratios.

The period under review demonstrates fluctuating performance in both reported and adjusted net income, consequently impacting associated profit margins. A notable divergence exists between reported and adjusted figures, suggesting the influence of specific adjustments to net income. The adjusted net profit margin exhibits a more pronounced volatility than the reported margin.

Adjusted Net Profit Margin - Overall Trend

The adjusted net profit margin began at 13.79% in 2021, decreased significantly to 3.74% in 2022, then experienced a recovery to 10.40% in 2023. Further improvement was observed in 2024, reaching 12.36%, culminating in a substantial increase to 18.33% in 2025. This indicates a recovery and strengthening of profitability when considering adjustments to net income.

Year-over-Year Changes - Adjusted Net Profit Margin

The largest year-over-year decrease in the adjusted net profit margin occurred between 2021 and 2022, with a decline of 10.05 percentage points. Conversely, the most significant increase was observed between 2024 and 2025, representing a 5.97 percentage point improvement. The period 2022-2023 shows a substantial recovery of 6.66 percentage points, indicating a turnaround in underlying profitability.

Relationship to Reported Net Profit Margin

Throughout the observed period, the adjusted net profit margin consistently exceeded the reported net profit margin, although the difference varied. The gap between the two margins was most pronounced in 2021 (1.62 percentage points) and 2025 (2.16 percentage points). This suggests that the adjustments made to reported net income positively impact profitability as measured by the adjusted metric. The narrowing of the gap in 2022 and 2023 could indicate a lessening impact from these adjustments or a relative improvement in reported earnings.

The substantial increase in the adjusted net profit margin in 2025 warrants further investigation to understand the drivers behind this improvement. The significant decline in 2022 also merits attention to identify the factors contributing to the reduced profitability during that year.

The reported and adjusted total asset turnover ratios for the period under review exhibit a consistent pattern. Both metrics demonstrate minimal variation across the five years presented, fluctuating within a narrow range. A slight increase is observed from 2021 to 2022, followed by relative stability through 2025.

Reported Total Asset Turnover

The reported total asset turnover ratio begins at 0.42 in 2021, increases to 0.47 in 2022, and then remains stable at 0.46 for the years 2022, 2023, and 2024. A slight decrease to 0.45 is noted in 2025. This suggests a generally consistent efficiency in generating revenue from assets, with a minor dip in the final year.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrors the trend of the reported ratio. It starts at 0.42 in 2021, rises to 0.47 in 2022, and then holds steady at 0.46 for 2023 and 2024. Similar to the reported ratio, a slight decline to 0.45 is seen in 2025. The consistency between the reported and adjusted ratios indicates that differences in asset valuation do not materially impact the overall turnover efficiency.

The total assets, both reported and adjusted, show a general trend of decline from 2021 to 2022, followed by a period of modest growth through 2025. However, this asset movement does not significantly alter the asset turnover ratios, indicating that revenue generation is relatively stable in relation to the asset base.

Overall, the asset turnover ratios suggest a stable operational efficiency. The minor fluctuations observed are not substantial enough to indicate a significant shift in how effectively assets are utilized to generate revenue.

An examination of the financial information reveals trends in both reported and adjusted financial leverage over a five-year period. Reported total assets experienced a decrease between 2021 and 2022, followed by moderate increases in subsequent years. Reported shareholders’ equity exhibited a more pronounced decrease from 2021 to 2022, with a gradual recovery observed through 2025, though not fully returning to the 2021 level. Adjusted total assets mirrored the trend of reported assets, while adjusted shareholders’ equity also showed a similar pattern of decline and subsequent recovery. The reported financial leverage ratio increased from 2021 to 2022, then stabilized before decreasing in 2025. The adjusted financial leverage ratio also increased from 2021 to 2023, then decreased slightly in 2024, and returned to the 2021 level in 2025.

Reported Financial Leverage

Reported financial leverage increased from 2.87 in 2021 to 3.18 in 2022, indicating a greater proportion of assets financed by equity holders. This ratio remained relatively stable at 3.20 and 3.11 in 2023 and 2024, respectively, before decreasing to 2.81 in 2025. The decrease in 2025 suggests a reduction in financial risk, potentially due to increased equity or decreased asset levels.

Adjusted Financial Leverage

Adjusted financial leverage followed a similar pattern to the reported ratio, rising from 2.19 in 2021 to 2.44 in 2023. A slight decrease to 2.40 was observed in 2024, followed by a return to the 2021 level of 2.19 in 2025. The adjusted leverage ratio consistently remained lower than the reported ratio throughout the period, suggesting that the adjustments made to shareholders’ equity resulted in a more conservative leverage position.

Asset and Equity Trends

Both reported and adjusted total assets experienced a dip in 2022, potentially due to divestitures or asset write-downs. Subsequent years saw moderate asset growth. The decline in shareholders’ equity in 2022 was more substantial, and while recovery was observed, the equity levels in 2024 were still below those of 2021. The adjusted equity figures were consistently higher than the reported equity figures, indicating the adjustments increased the equity base.

The convergence of the reported and adjusted financial leverage ratios in 2025 suggests that the impact of the adjustments to equity diminished during that year. Overall, the trends indicate a period of fluctuating financial leverage, with a return to initial levels by the end of the observed period.

The period between 2021 and 2025 demonstrates fluctuating performance in both reported and adjusted net income, alongside corresponding shifts in shareholders’ equity. These fluctuations directly impact reported and adjusted return on equity (ROE) values.

Reported Net Income & ROE

Reported net income attributable to Comcast Corporation experienced a significant decline from US$14,159 million in 2021 to US$5,370 million in 2022. This decrease corresponded with a substantial drop in reported ROE from 14.73% to 6.63%. A recovery was then observed, with reported net income increasing to US$15,388 million in 2023 and further to US$16,192 million in 2024, resulting in a rise in reported ROE to 18.61% and 18.92% respectively. The trend continued positively into 2025, with reported net income reaching US$19,998 million and reported ROE climbing to 20.64%.

Adjusted Net Income & ROE

Adjusted net income followed a similar, though less pronounced, pattern. It decreased from US$16,051 million in 2021 to US$4,536 million in 2022, leading to a decline in adjusted ROE from 12.75% to 4.14%. Adjusted net income then rose to US$12,649 million in 2023, but fell short of the 2021 level, with adjusted ROE reaching 11.65%. Further increases were seen in 2024 (US$15,290 million, 13.81% ROE) and 2025 (US$22,672 million, 18.20% ROE). While the direction of change mirrors the reported figures, the magnitude of the fluctuations is smaller for the adjusted values.

Shareholders’ Equity

Reported total shareholders’ equity decreased from US$96,092 million in 2021 to US$80,943 million in 2022, before stabilizing and gradually increasing to US$82,703 million in 2023, US$85,560 million in 2024, and US$96,903 million in 2025. Adjusted total shareholders’ equity exhibited a similar pattern, declining from US$125,851 million in 2021 to US$109,452 million in 2022, then remaining relatively stable between US$108,597 million and US$110,678 million for 2023 and 2024, before increasing to US$124,555 million in 2025. The adjusted equity values are consistently higher than the reported equity values throughout the period.

ROE Discrepancy

A consistent difference exists between reported and adjusted ROE values in each year. The adjusted ROE is consistently lower than the reported ROE, with the largest difference observed in 2021 (1.98 percentage points) and 2025 (2.44 percentage points). This suggests that adjustments to net income and/or shareholders’ equity have a dampening effect on the calculated ROE. The gap between reported and adjusted ROE narrowed in 2022, but widened again in subsequent years.

The period between 2021 and 2025 demonstrates fluctuating performance in both reported and adjusted net income, alongside relatively stable total asset values. This impacts the observed return on assets (ROA) figures. A comparison of reported and adjusted ROA reveals differences stemming from adjustments made to net income and total assets.

Reported ROA

Reported ROA begins at 5.13% in 2021, declines significantly to 2.09% in 2022, then exhibits a consistent upward trend, reaching 7.34% by 2025. The substantial decrease in 2022 coincides with a marked reduction in reported net income. Subsequent increases in reported ROA are driven by both increases in reported net income and relatively stable reported total assets.

Adjusted ROA

Adjusted ROA follows a similar pattern to reported ROA, starting at 5.82% in 2021, decreasing to 1.76% in 2022, and increasing to 8.32% in 2025. However, the magnitude of the fluctuations differs. The decline from 2021 to 2022 is more pronounced for adjusted net income than for reported net income, resulting in a larger percentage decrease in adjusted ROA. The 2025 value represents the highest ROA observed over the five-year period.

Net Income and ROA Relationship

A strong correlation exists between net income and ROA for both reported and adjusted figures. The significant drop in net income in 2022 directly contributes to the lower ROA observed in that year. Conversely, the increases in net income in 2023, 2024, and 2025 drive the corresponding increases in ROA. The adjusted net income consistently shows a lower value than the reported net income in 2022 and 2023, which impacts the adjusted ROA.

Asset Stability

Reported total assets remain relatively stable throughout the period, fluctuating between US$257.275 million and US$275.905 million. Adjusted total assets exhibit a similar pattern. This stability suggests that changes in ROA are primarily driven by changes in net income rather than significant shifts in the asset base.

Adjustments Impact

The difference between reported and adjusted ROA highlights the impact of the adjustments made to net income and total assets. In all years, the adjusted ROA is different from the reported ROA, indicating that these adjustments have a material effect on the calculated return. The largest difference between the two ROA figures is observed in 2022, suggesting the adjustments had the most significant impact in that year.