Activision Blizzard Inc., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (as reported)	1,513)	2,699)	2,197)	1,503)	1,813)
Add: Unrealized gains (losses) on available-for-sale securities, net of tax	(3)	8)	(2)	(8)	5)
Net income (adjusted)	1,510)	2,707)	2,195)	1,495)	1,818)

Download chart

Activision Blizzard Inc., adjusted profitability ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	20.10%	30.66%	27.17%	23.16%	24.17%
Adjusted net profit margin	20.06%	30.75%	27.15%	23.04%	24.24%
Return on Equity (ROE)
Reported ROE	7.86%	15.34%	14.61%	11.74%	15.96%
Adjusted ROE	7.85%	15.38%	14.60%	11.68%	16.01%
Return on Assets (ROA)
Reported ROA	5.53%	10.77%	9.51%	7.57%	10.17%
Adjusted ROA	5.51%	10.80%	9.50%	7.53%	10.19%

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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Activision Blizzard Inc. adjusted ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Activision Blizzard Inc. adjusted ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Download chart

	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)
Net revenues	7,528)	8,803)	8,086)	6,489)	7,500)
Profitability Ratio
Net profit margin¹	20.10%	30.66%	27.17%	23.16%	24.17%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	1,510)	2,707)	2,195)	1,495)	1,818)
Net revenues	7,528)	8,803)	8,086)	6,489)	7,500)
Profitability Ratio
Adjusted net profit margin²	20.06%	30.75%	27.15%	23.04%	24.24%

2022 Calculations

¹ Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 1,513 ÷ 7,528 = 20.10%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenues
= 100 × 1,510 ÷ 7,528 = 20.06%

Download chart

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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	1,510)	2,707)	2,195)	1,495)	1,818)
Shareholders’ equity	19,243)	17,599)	15,037)	12,805)	11,357)
Profitability Ratio
Adjusted ROE²	7.85%	15.38%	14.60%	11.68%	16.01%

2022 Calculations

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

² Adjusted ROE = 100 × Adjusted net income ÷ Shareholders’ equity
= 100 × 1,510 ÷ 19,243 = 7.85%

Download chart

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

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	1,510)	2,707)	2,195)	1,495)	1,818)
Total assets	27,383)	25,056)	23,109)	19,845)	17,835)
Profitability Ratio
Adjusted ROA²	5.51%	10.80%	9.50%	7.53%	10.19%

2022 Calculations

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

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,510 ÷ 27,383 = 5.51%

Download chart

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

Activision Blizzard Inc. (NASDAQ:ATVI)

Analysis of Investments