Stock Analysis on Net

Activision Blizzard Inc. (NASDAQ:ATVI)

This company was transferred to the archive: financial data is no longer updated!

Analysis of Investments

Microsoft Excel LibreOffice Calc

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Activision Blizzard Inc., adjustment to net income

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net income (as reported) 2,197  1,503  1,813  273  966 
Add: Unrealized gains (losses) on investments, net of tax (2) (8) (1) — 
Net income (adjusted) 2,195  1,495  1,818  272  966 

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).


Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Activision Blizzard Inc., adjusted profitability ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Net Profit Margin
Reported net profit margin 27.17% 23.16% 24.17% 3.89% 14.62%
Adjusted net profit margin 27.15% 23.04% 24.24% 3.88% 14.62%
Return on Equity (ROE)
Reported ROE 14.61% 11.74% 15.96% 2.89% 10.59%
Adjusted ROE 14.60% 11.68% 16.01% 2.87% 10.59%
Return on Assets (ROA)
Reported ROA 9.51% 7.57% 10.17% 1.46% 5.54%
Adjusted ROA 9.50% 7.53% 10.19% 1.46% 5.54%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Activision Blizzard Inc. adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Activision Blizzard Inc. adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Activision Blizzard Inc. adjusted ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

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


Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 2,197  1,503  1,813  273  966 
Net revenues 8,086  6,489  7,500  7,017  6,608 
Profitability Ratio
Net profit margin1 27.17% 23.16% 24.17% 3.89% 14.62%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 2,195  1,495  1,818  272  966 
Net revenues 8,086  6,489  7,500  7,017  6,608 
Profitability Ratio
Adjusted net profit margin2 27.15% 23.04% 24.24% 3.88% 14.62%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 2,197 ÷ 8,086 = 27.17%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenues
= 100 × 2,195 ÷ 8,086 = 27.15%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Activision Blizzard Inc. adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 2,197  1,503  1,813  273  966 
Shareholders’ equity 15,037  12,805  11,357  9,462  9,119 
Profitability Ratio
ROE1 14.61% 11.74% 15.96% 2.89% 10.59%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 2,195  1,495  1,818  272  966 
Shareholders’ equity 15,037  12,805  11,357  9,462  9,119 
Profitability Ratio
Adjusted ROE2 14.60% 11.68% 16.01% 2.87% 10.59%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 2,197 ÷ 15,037 = 14.61%

2 Adjusted ROE = 100 × Adjusted net income ÷ Shareholders’ equity
= 100 × 2,195 ÷ 15,037 = 14.60%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Activision Blizzard Inc. adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income 2,197  1,503  1,813  273  966 
Total assets 23,109  19,845  17,835  18,668  17,452 
Profitability Ratio
ROA1 9.51% 7.57% 10.17% 1.46% 5.54%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 2,195  1,495  1,818  272  966 
Total assets 23,109  19,845  17,835  18,668  17,452 
Profitability Ratio
Adjusted ROA2 9.50% 7.53% 10.19% 1.46% 5.54%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 2,197 ÷ 23,109 = 9.51%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 2,195 ÷ 23,109 = 9.50%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Activision Blizzard Inc. adjusted ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.