Stock Analysis on Net
Stock Analysis on Net

EMC Corp. (NYSE:EMC)

This company has been moved to the archive! The financial data has not been updated since August 8, 2016.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

EMC Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Federal 673 955 698 792 488
State 65 81 84 74 71
Foreign 206 228 192 169 101
Current 944 1,264 974 1,035 660
Federal (152) (308) (163) (80) 14
State (58) (70) (23) (12) (45)
Foreign (24) (18) (16) (25) 12
Deferred (234) (396) (202) (118) (19)
Provision for income taxes 710 868 772 918 640

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. EMC Corp. current increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. EMC Corp. deferred decreased from 2013 to 2014 but then increased from 2014 to 2015 not reaching 2013 level.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. EMC Corp. provision for income taxes increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.

Effective Income Tax Rate (EITR)

EMC Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Statutory federal tax rate 35.00% 35.00% 35.00% 35.00% 35.00%
State taxes, net of federal taxes 0.60% 1.20% 0.70% 0.50% 0.70%
Accounting for historical uncertain tax positions -0.10% 1.10% -0.40% -0.50% -1.70%
Tax rate differential for international jurisdictions and other international related tax items -12.80% -11.60% -15.30% -13.60% -14.40%
U.S. tax credits -2.70% -1.90% -3.80% -0.20% -2.80%
Changes in valuation allowance 0.60% -2.30% 0.70% 0.80% 0.00%
U.S. domestic production activities deduction -1.40% -1.80% -1.50% -1.30% 0.00%
International reorganization of acquired companies 0.00% 0.00% 0.60% 0.30% 0.00%
Permanent items 4.30% 3.90% 3.80% 2.80% 2.50%
Other 1.10% -0.50% 0.20% 0.30% 0.40%
Effective income tax rate 24.60% 23.10% 20.00% 24.10% 19.70%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. EMC Corp. effective income tax rate increased from 2013 to 2014 and from 2014 to 2015.

Components of Deferred Tax Assets and Liabilities

EMC Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Accounts and notes receivable 55 59 96 68 86
Inventory 70 73 73 64 91
Accrued expenses 295 305 311 291 281
Deferred revenue 987 818 618 458 274
Equity 252 254 222 242 —
Other non-current liabilities — 23 — — —
Credit carryforwards 281 255 284 68 73
Net operating losses 137 116 106 128 157
Other comprehensive loss 133 103 109 120 134
Gross deferred tax assets 2,210 2,006 1,819 1,439 1,097
Valuation allowance (144) (126) (211) (4) (5)
Deferred tax assets 2,066 1,880 1,608 1,434 1,092
Deferred revenue — — — — (11)
Property, plant and equipment, net (325) (323) (291) (286) (246)
Intangible and other assets, net (569) (605) (680) (663) (610)
Equity — — — — (39)
Other non-current liabilities (8) — (13) (54) (56)
Deferred tax liabilities (902) (928) (984) (1,002) (962)
Deferred tax assets and liabilities 1,164 952 624 432 130

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Item Description The company
Gross deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. EMC Corp. gross deferred tax assets increased from 2013 to 2014 and from 2014 to 2015.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. EMC Corp. deferred tax assets increased from 2013 to 2014 and from 2014 to 2015.
Deferred tax assets and liabilities Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. EMC Corp. deferred tax assets and liabilities increased from 2013 to 2014 and from 2014 to 2015.

Deferred Tax Assets and Liabilities, Classification

EMC Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Current deferred tax assets — 1,070 912 942 733
Non-current deferred tax assets 1,164 157 133 65 —
Non-current deferred tax liabilities — 274 421 575 603

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Item Description The company
Non-current deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. EMC Corp. non-current deferred tax assets increased from 2013 to 2014 and from 2014 to 2015.
Non-current deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. EMC Corp. non-current deferred tax liabilities decreased from 2013 to 2014 and from 2014 to 2015.

Adjustments to Financial Statements: Removal of Deferred Taxes

EMC Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Adjustment to Current Assets
Current assets (as reported) 15,063 15,733 17,278 12,209 11,583
Less: Current deferred tax assets, net — 1,070 912 942 733
Current assets (adjusted) 15,063 14,663 16,366 11,267 10,849
Adjustment to Total Assets
Total assets (as reported) 46,612 45,885 45,849 38,069 34,268
Less: Current deferred tax assets, net — 1,070 912 942 733
Less: Noncurrent deferred tax assets, net 1,164 157 133 65 —
Total assets (adjusted) 45,448 44,658 44,804 37,062 33,535
Adjustment to Total Liabilities
Total liabilities (as reported) 23,893 22,360 22,063 14,545 14,341
Less: Noncurrent deferred tax liabilities, net — 274 421 575 603
Total liabilities (adjusted) 23,893 22,086 21,642 13,970 13,738
Adjustment to Total EMC Corporation’s Shareholders’ Equity
Total EMC Corporation’s shareholders’ equity (as reported) 21,140 21,896 22,301 22,357 18,959
Less: Net deferred tax assets (liabilities) 1,164 952 624 432 130
Total EMC Corporation’s shareholders’ equity (adjusted) 19,976 20,944 21,677 21,925 18,829
Adjustment to Net Income Attributable To EMC Corporation
Net income attributable to EMC Corporation (as reported) 1,990 2,714 2,889 2,733 2,461
Add: Deferred income tax expense (benefit) (234) (396) (202) (118) (19)
Net income attributable to EMC Corporation (adjusted) 1,756 2,318 2,687 2,615 2,442

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

EMC Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

EMC Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Current Ratio
Reported current ratio 1.17 1.34 1.46 1.18 1.12
Adjusted current ratio 1.17 1.25 1.39 1.09 1.05
Net Profit Margin
Reported net profit margin 8.06% 11.10% 12.44% 12.58% 12.30%
Adjusted net profit margin 7.11% 9.48% 11.57% 12.04% 12.20%
Total Asset Turnover
Reported total asset turnover 0.53 0.53 0.51 0.57 0.58
Adjusted total asset turnover 0.54 0.55 0.52 0.59 0.60
Financial Leverage
Reported financial leverage 2.20 2.10 2.06 1.70 1.81
Adjusted financial leverage 2.28 2.13 2.07 1.69 1.78
Return on Equity (ROE)
Reported ROE 9.41% 12.39% 12.95% 12.22% 12.98%
Adjusted ROE 8.79% 11.07% 12.40% 11.93% 12.97%
Return on Assets (ROA)
Reported ROA 4.27% 5.91% 6.30% 7.18% 7.18%
Adjusted ROA 3.86% 5.19% 6.00% 7.06% 7.28%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. EMC Corp. adjusted current ratio deteriorated from 2013 to 2014 and from 2014 to 2015.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. EMC Corp. adjusted net profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. EMC Corp. adjusted total asset turnover ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 EMC Corp. adjusted financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. EMC Corp. adjusted ROE deteriorated from 2013 to 2014 and from 2014 to 2015.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. EMC Corp. adjusted ROA deteriorated from 2013 to 2014 and from 2014 to 2015.

EMC Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Current assets 15,063 15,733 17,278 12,209 11,583
Current liabilities 12,885 11,710 11,799 10,304 10,376
Liquidity Ratio
Current ratio1 1.17 1.34 1.46 1.18 1.12
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 15,063 14,663 16,366 11,267 10,849
Current liabilities 12,885 11,710 11,799 10,304 10,376
Liquidity Ratio
Adjusted current ratio2 1.17 1.25 1.39 1.09 1.05

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 15,063 ÷ 12,885 = 1.17

2 Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 15,063 ÷ 12,885 = 1.17

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. EMC Corp. adjusted current ratio deteriorated from 2013 to 2014 and from 2014 to 2015.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to EMC Corporation 1,990 2,714 2,889 2,733 2,461
Revenues 24,704 24,440 23,222 21,714 20,008
Profitability Ratio
Net profit margin1 8.06% 11.10% 12.44% 12.58% 12.30%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to EMC Corporation 1,756 2,318 2,687 2,615 2,442
Revenues 24,704 24,440 23,222 21,714 20,008
Profitability Ratio
Adjusted net profit margin2 7.11% 9.48% 11.57% 12.04% 12.20%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Net profit margin = 100 × Net income attributable to EMC Corporation ÷ Revenues
= 100 × 1,990 ÷ 24,704 = 8.06%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to EMC Corporation ÷ Revenues
= 100 × 1,756 ÷ 24,704 = 7.11%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. EMC Corp. adjusted net profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Revenues 24,704 24,440 23,222 21,714 20,008
Total assets 46,612 45,885 45,849 38,069 34,268
Activity Ratio
Total asset turnover1 0.53 0.53 0.51 0.57 0.58
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues 24,704 24,440 23,222 21,714 20,008
Adjusted total assets 45,448 44,658 44,804 37,062 33,535
Activity Ratio
Adjusted total asset turnover2 0.54 0.55 0.52 0.59 0.60

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 24,704 ÷ 46,612 = 0.53

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 24,704 ÷ 45,448 = 0.54

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. EMC Corp. adjusted total asset turnover ratio improved from 2013 to 2014 but then slightly deteriorated from 2014 to 2015.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Total assets 46,612 45,885 45,849 38,069 34,268
Total EMC Corporation’s shareholders’ equity 21,140 21,896 22,301 22,357 18,959
Solvency Ratio
Financial leverage1 2.20 2.10 2.06 1.70 1.81
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 45,448 44,658 44,804 37,062 33,535
Adjusted total EMC Corporation’s shareholders’ equity 19,976 20,944 21,677 21,925 18,829
Solvency Ratio
Adjusted financial leverage2 2.28 2.13 2.07 1.69 1.78

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 Financial leverage = Total assets ÷ Total EMC Corporation’s shareholders’ equity
= 46,612 ÷ 21,140 = 2.20

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total EMC Corporation’s shareholders’ equity
= 45,448 ÷ 19,976 = 2.28

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 EMC Corp. adjusted financial leverage ratio increased from 2013 to 2014 and from 2014 to 2015.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to EMC Corporation 1,990 2,714 2,889 2,733 2,461
Total EMC Corporation’s shareholders’ equity 21,140 21,896 22,301 22,357 18,959
Profitability Ratio
ROE1 9.41% 12.39% 12.95% 12.22% 12.98%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to EMC Corporation 1,756 2,318 2,687 2,615 2,442
Adjusted total EMC Corporation’s shareholders’ equity 19,976 20,944 21,677 21,925 18,829
Profitability Ratio
Adjusted ROE2 8.79% 11.07% 12.40% 11.93% 12.97%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 ROE = 100 × Net income attributable to EMC Corporation ÷ Total EMC Corporation’s shareholders’ equity
= 100 × 1,990 ÷ 21,140 = 9.41%

2 Adjusted ROE = 100 × Adjusted net income attributable to EMC Corporation ÷ Adjusted total EMC Corporation’s shareholders’ equity
= 100 × 1,756 ÷ 19,976 = 8.79%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. EMC Corp. adjusted ROE deteriorated from 2013 to 2014 and from 2014 to 2015.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to EMC Corporation 1,990 2,714 2,889 2,733 2,461
Total assets 46,612 45,885 45,849 38,069 34,268
Profitability Ratio
ROA1 4.27% 5.91% 6.30% 7.18% 7.18%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to EMC Corporation 1,756 2,318 2,687 2,615 2,442
Adjusted total assets 45,448 44,658 44,804 37,062 33,535
Profitability Ratio
Adjusted ROA2 3.86% 5.19% 6.00% 7.06% 7.28%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

2015 Calculations

1 ROA = 100 × Net income attributable to EMC Corporation ÷ Total assets
= 100 × 1,990 ÷ 46,612 = 4.27%

2 Adjusted ROA = 100 × Adjusted net income attributable to EMC Corporation ÷ Adjusted total assets
= 100 × 1,756 ÷ 45,448 = 3.86%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. EMC Corp. adjusted ROA deteriorated from 2013 to 2014 and from 2014 to 2015.