Activision Blizzard Inc. (NASDAQ:ATVI)

Current Assets

The current assets of the company exhibited a consistent upward trend over the five-year period. Starting at 6,106 million US dollars at the end of 2018, the figure rose steadily each year, reaching 7,292 million in 2019, 10,565 million in 2020, 12,556 million in 2021, and culminating at 14,469 million in 2022. This reflects a significant increase overall, suggesting improved liquidity or growth in short-term resources.

Adjusted Current Assets

The adjusted current assets followed a pattern closely mirroring that of the current assets, indicating stability in the adjustments applied. Values rose from 6,292 million US dollars in 2018 to 7,410 million in 2019, then to 10,628 million in 2020. The upward movement continued to 12,573 million in 2021 and 14,485 million in 2022. The close alignment between adjusted and reported current assets suggests consistent accounting practices and validates the observed growth trend.

Total assets

Total assets have exhibited a steady upward trajectory from 2018 through 2022. The value increased from US$17,835 million in 2018 to US$27,383 million by the end of 2022. This represents a notable growth of approximately 53.5% over the five-year period.

The year-over-year increases suggest consistent expansion of asset holdings, with the most substantial absolute growth occurring between 2020 and 2021, where total assets rose by US$1,947 million, and a further significant increment in 2022.

Adjusted total assets

Adjusted total assets also followed a positive trend overall, increasing from US$17,931 million in 2018 to US$26,198 million in 2022, reflecting a growth of approximately 46.1%.

It is noteworthy that adjusted total assets decreased slightly from 2018 to 2019, dropping from US$17,931 million to US$18,670 million, but then recovered and expanded significantly from 2019 onward. The growth was especially marked between 2019 and 2020, and continued steadily through 2021 and 2022.

Comparative observations

The trends in total assets and adjusted total assets are closely aligned, both indicating overall asset growth. However, total assets consistently remain slightly higher than adjusted total assets each year, which suggests the adjustments reduce the asset base by a relatively modest margin.

The steady increases in both measures may indicate ongoing investments, acquisitions, or organic growth in asset value over the period. The consistent asset growth over five years reflects financial expansion and potentially greater operational capacity or market presence.

Current liabilities

The current liabilities show a fluctuating trend over the five-year period. Starting at 2,642 million USD at the end of 2018, there was a gradual increase to 3,100 million USD by the end of 2020. A notable decrease occurred in 2021, bringing the liabilities down to 2,411 million USD. However, this was followed by a sharp rise in 2022, reaching 3,555 million USD, the highest value in the observed period.

Adjusted current liabilities

Adjusted current liabilities exhibit a slightly different pattern. Beginning at 1,149 million USD in 2018, these liabilities increased to 1,505 million USD in 2019. A decline then took place in 2020 and 2021, reaching a low of 1,208 million USD. In 2022, there was a moderate increase to 1,433 million USD. Overall, the adjusted liabilities remain lower than the reported current liabilities but display less volatility relative to the unadjusted figures.

Comparative insights

Comparing the two sets of liabilities, the adjusted current liabilities are consistently lower than the total current liabilities, indicating certain adjustments or exclusions applied to arrive at the adjusted figures. The adjusted liabilities display a more stable trajectory while total current liabilities reflect greater volatility, particularly notable in the sharp decrease in 2021 and rapid increase in 2022. This suggests possible changes in short-term financial obligations or accounting treatments impacting the total current liabilities more significantly.

The financial data reveals the trends in total liabilities and adjusted total liabilities over a five-year period ending December 31, 2022.

Total Liabilities

The total liabilities showed an overall increasing trend during the period under review. The liabilities rose from 6,478 million USD at the end of 2018 to 8,140 million USD by the end of 2022.

There was a consistent year-on-year increase from 2018 through 2020, moving from 6,478 million USD to 8,072 million USD. In 2021, a slight decrease to 7,457 million USD was observed, indicating a temporary reduction in liabilities. However, liabilities resumed their upward trend in 2022, reaching the highest recorded value of 8,140 million USD.

Adjusted Total Liabilities

The adjusted total liabilities presented a different pattern compared to total liabilities. It showed an initial decrease from 5,280 million USD in 2018 to 5,125 million USD in 2019.

Subsequently, the adjusted liabilities increased steadily, reaching 5,874 million USD in 2020. In 2021, a slight decline occurred to 5,748 million USD, followed by a marginal rise to 5,860 million USD in 2022.

Overall, the adjusted total liabilities remained relatively stable with moderate fluctuations between 5,100 million USD and 5,900 million USD, indicating a more controlled liability profile after adjustments compared to the total liabilities.

In summary, while the total liabilities exhibited an increasing trend with some volatility, adjusted total liabilities showed more stability with moderate fluctuations, suggesting that the adjustments account for factors that reduce the apparent volatility and total obligation reflected by the unadjusted liabilities.

Shareholders’ Equity

The shareholders’ equity shows a consistent upward trend over the five-year period from 2018 to 2022. It increased from 11,357 million US dollars in 2018 to 19,243 million US dollars in 2022. The growth reflects steady accumulation of equity, indicating strengthening financial stability and potentially increased retained earnings or additional capital injections.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity also exhibits a continuous increase from 12,649 million US dollars in 2018 to 20,337 million US dollars in 2022. The adjusted figures remain consistently higher than the reported shareholders’ equity, suggesting the inclusion of certain revaluations or other adjustments that positively affect the equity base. The growth rate is similarly steady, reinforcing the overall pattern of financial strengthening during the period.

Overall Analysis

Both shareholders’ equity and adjusted shareholders’ equity demonstrate sustained growth year-over-year, indicating ongoing improvements in the company’s net asset position. This continuous increase may reflect profitable operations, efficient capital management, and retained earnings accumulation. The differential between the reported and adjusted shareholders’ equity highlights the impact of non-traditional accounting adjustments, which consistently add value to the reported equity base.

The financial data reveals consistent growth in equity and capital over the observed five-year period, accompanied by relatively stable debt levels.

Total Reported Debt

The total debt remained relatively flat from 2018 to 2019, at approximately 2.67 billion USD. There was a significant increase in 2020 by roughly 934 million USD. Following this, debt levels stabilized slightly above 3.6 billion USD through 2021 and 2022, indicating limited new borrowing beyond 2020.

Shareholders’ Equity

Shareholders’ equity showed consistent and substantial growth year-over-year, increasing from 11.36 billion USD in 2018 to 19.24 billion USD in 2022. The rise was steady, with an increase of roughly 6 billion USD over the five years, reflecting either retained earnings accumulation, capital injections, or a combination thereof.

Total Reported Capital

Total reported capital, representing the sum of debt and equity, demonstrated a clear upward trend, growing from 14.03 billion USD in 2018 to 22.85 billion USD in 2022. The increase largely reflects the consistent growth in equity, as debt levels remained fairly constant after the 2020 increase.

Adjusted Total Debt

Adjusted total debt mirrors the trend of reported total debt with slightly higher figures, starting at 2.98 billion USD in 2018 and rising sharply in 2020 to nearly 3.9 billion USD. After this peak, adjusted debt marginally declined by 2022 to 3.86 billion USD, indicating slight deleveraging or debt repayments.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity also follows a positive and steady growth trajectory, increasing from 12.65 billion USD in 2018 to 20.34 billion USD in 2022. This adjustment illustrates a somewhat higher valuation of equity compared to the reported figure, confirming the overall strengthening of the company’s financial base.

Adjusted Total Capital

The adjusted total capital, combining adjusted debt and equity, rose consistently each year from 15.63 billion USD in 2018 to 24.19 billion USD in 2022. The pattern aligns with the growth in adjusted equity, reinforcing the observation of a stronger capital base with relatively stable leverage.

In summary, the data highlights a company that has maintained a relatively stable debt profile since 2020, with a pronounced and continuous increase in equity and capital. This suggests an improved financial position and potential enhanced capacity for future investment or risk absorption. The relatively flat debt levels alongside growing equity indicate a strengthening balance sheet over the period analyzed.

Net Revenues

The net revenues showed a decline from 7,500 million USD in 2018 to 6,489 million USD in 2019. This was followed by a significant recovery and growth to 8,086 million USD in 2020 and further increase to 8,803 million USD in 2021. However, in 2022, net revenues declined again to 7,528 million USD, indicating some volatility and fluctuations over the five-year period.

Adjusted Net Revenues

Adjusted net revenues also decreased from 7,064 million USD in 2018 to 6,371 million USD in 2019, mirroring the trend in net revenues. There was a notable increase to 8,400 million USD in 2020, followed by a slight drop to 8,232 million USD in 2021. In contrast to net revenues, adjusted net revenues increased again in 2022 to 8,498 million USD, reaching the highest value during the period reviewed.

Comparative Insights

Both net revenues and adjusted net revenues exhibited a comparable pattern, with a decline in 2019 and strong growth in 2020. Net revenues peaked in 2021 before declining in 2022, while adjusted net revenues, after a slight dip in 2021, increased in 2022. This divergence in the last year suggests that adjustments to revenue figures, possibly for non-recurring items or accounting policies, have a growing impact on the reported revenue performance.

Net Income

The net income exhibited a variable trend over the five-year period. Starting at $1,813 million in 2018, it decreased to $1,503 million in 2019. A significant increase followed in 2020, reaching $2,197 million, and continued to rise to its peak of $2,699 million in 2021. However, in 2022, net income declined sharply to $1,513 million, nearing the 2019 level.

Adjusted Net Income

The adjusted net income showed fluctuations that differ somewhat from the net income pattern. It began at $1,350 million in 2018, then dropped more noticeably to $981 million in 2019. A strong rebound occurred in 2020, with adjusted net income climbing to $2,412 million. This was followed by a slight decrease to $2,132 million in 2021 but then increased again in 2022 to $2,216 million, surpassing the previous two years and the original 2018 figure.

Comparative Observations

While net income experienced a significant decline in 2022, adjusted net income maintained an upward trajectory during the same period. This suggests that adjustments made to net income—potentially accounting for non-recurring items or other financial anomalies—had a material impact on presenting profitability more favorably in 2022. Overall, adjusted net income demonstrates greater stability and growth compared to the volatility observed in net income.