Stock Analysis on Net
Stock Analysis on Net

Activision Blizzard Inc. (NASDAQ:ATVI)

This company has been moved to the archive! The financial data has not been updated since July 31, 2023.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Activision Blizzard Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Internally-developed franchises — 1,154 1,154 1,154 1,154
Developed software — — 601 601 601
Customer base — — — — 617
Trade names and other 90 80 73 73 73
Acquired definite-lived intangible assets, gross carrying amount 90 1,234 1,828 1,828 2,445
Accumulated amortization (81) (1,220) (1,810) (1,730) (2,143)
Acquired definite-lived intangible assets, net carrying amount 9 14 18 98 302
Activision trademark 386 386 386 386 386
Acquired trade names 47 47 47 47 47
Acquired indefinite-lived intangible assets 433 433 433 433 433
Intangible assets, net 442 447 451 531 735
Goodwill 9,929 9,799 9,765 9,764 9,762
Intangible assets, net and goodwill 10,371 10,246 10,216 10,295 10,497

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Activision Blizzard Inc. intangible assets, net decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Activision Blizzard Inc. goodwill increased from 2020 to 2021 and from 2021 to 2022.
Intangible assets, net and goodwill Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Activision Blizzard Inc. intangible assets, net and goodwill increased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Goodwill

Activision Blizzard Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 27,383 25,056 23,109 19,845 17,835
Less: Goodwill 9,929 9,799 9,765 9,764 9,762
Total assets (adjusted) 17,454 15,257 13,344 10,081 8,073
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported) 19,243 17,599 15,037 12,805 11,357
Less: Goodwill 9,929 9,799 9,765 9,764 9,762
Shareholders’ equity (adjusted) 9,314 7,800 5,272 3,041 1,595

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Activision Blizzard Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Activision Blizzard Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Total Asset Turnover
Reported total asset turnover 0.27 0.35 0.35 0.33 0.42
Adjusted total asset turnover 0.43 0.58 0.61 0.64 0.93
Financial Leverage
Reported financial leverage 1.42 1.42 1.54 1.55 1.57
Adjusted financial leverage 1.87 1.96 2.53 3.32 5.06
Return on Equity (ROE)
Reported ROE 7.86% 15.34% 14.61% 11.74% 15.96%
Adjusted ROE 16.24% 34.60% 41.67% 49.42% 113.67%
Return on Assets (ROA)
Reported ROA 5.53% 10.77% 9.51% 7.57% 10.17%
Adjusted ROA 8.67% 17.69% 16.46% 14.91% 22.46%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Activision Blizzard Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
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.		 Activision Blizzard Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Activision Blizzard Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Activision Blizzard Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Activision Blizzard Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net revenues 7,528 8,803 8,086 6,489 7,500
Total assets 27,383 25,056 23,109 19,845 17,835
Activity Ratio
Total asset turnover1 0.27 0.35 0.35 0.33 0.42
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenues 7,528 8,803 8,086 6,489 7,500
Adjusted total assets 17,454 15,257 13,344 10,081 8,073
Activity Ratio
Adjusted total asset turnover2 0.43 0.58 0.61 0.64 0.93

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 7,528 ÷ 27,383 = 0.27

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 7,528 ÷ 17,454 = 0.43

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Activision Blizzard Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets 27,383 25,056 23,109 19,845 17,835
Shareholders’ equity 19,243 17,599 15,037 12,805 11,357
Solvency Ratio
Financial leverage1 1.42 1.42 1.54 1.55 1.57
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 17,454 15,257 13,344 10,081 8,073
Adjusted shareholders’ equity 9,314 7,800 5,272 3,041 1,595
Solvency Ratio
Adjusted financial leverage2 1.87 1.96 2.53 3.32 5.06

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 27,383 ÷ 19,243 = 1.42

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 17,454 ÷ 9,314 = 1.87

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.		 Activision Blizzard Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income 1,513 2,699 2,197 1,503 1,813
Shareholders’ equity 19,243 17,599 15,037 12,805 11,357
Profitability Ratio
ROE1 7.86% 15.34% 14.61% 11.74% 15.96%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 1,513 2,699 2,197 1,503 1,813
Adjusted shareholders’ equity 9,314 7,800 5,272 3,041 1,595
Profitability Ratio
Adjusted ROE2 16.24% 34.60% 41.67% 49.42% 113.67%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,513 ÷ 19,243 = 7.86%

2 Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 1,513 ÷ 9,314 = 16.24%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Activision Blizzard Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income 1,513 2,699 2,197 1,503 1,813
Total assets 27,383 25,056 23,109 19,845 17,835
Profitability Ratio
ROA1 5.53% 10.77% 9.51% 7.57% 10.17%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 1,513 2,699 2,197 1,503 1,813
Adjusted total assets 17,454 15,257 13,344 10,081 8,073
Profitability Ratio
Adjusted ROA2 8.67% 17.69% 16.46% 14.91% 22.46%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 1,513 ÷ 27,383 = 5.53%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 1,513 ÷ 17,454 = 8.67%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Activision Blizzard Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.