Stock Analysis on Net
Stock Analysis on Net
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Activision Blizzard Inc. (NASDAQ:ATVI)

Adjusted Financial Ratios

Advanced level


Adjusted Financial Ratios (Summary)

Activision Blizzard Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Activity Ratio
Total Asset Turnover
Reported 0.33 0.42 0.38 0.38 0.31
Adjusted 0.34 0.39 0.39 0.37 0.30
Liquidity Ratio
Current Ratio
Reported 2.50 2.31 1.78 1.82 1.30
Adjusted 4.93 5.48 3.92 4.95 4.10
Solvency Ratios
Debt to Equity
Reported 0.21 0.24 0.46 0.54 0.51
Adjusted 0.22 0.24 0.42 0.48 0.43
Debt to Capital
Reported 0.17 0.19 0.32 0.35 0.34
Adjusted 0.18 0.19 0.30 0.33 0.30
Financial Leverage
Reported 1.55 1.57 1.97 1.91 1.89
Adjusted 1.38 1.42 1.68 1.65 1.57
Profitability Ratios
Net Profit Margin
Reported 23.16% 24.17% 3.89% 14.62% 19.13%
Adjusted 15.55% 19.10% 5.52% 12.29% 9.10%
Return on Equity (ROE)
Reported 11.74% 15.96% 2.89% 10.59% 11.06%
Adjusted 7.31% 10.66% 3.60% 7.46% 4.22%
Return on Assets (ROA)
Reported 7.57% 10.17% 1.46% 5.54% 5.85%
Adjusted 5.30% 7.52% 2.15% 4.53% 2.69%

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Activision Blizzard Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Activision Blizzard Inc.’s adjusted current ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Activision Blizzard Inc.’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Activision Blizzard Inc.’s adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.
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.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Activision Blizzard Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Activision Blizzard Inc.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Activision Blizzard Inc.’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

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


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net revenues 6,489  7,500  7,017  6,608  4,664 
Total assets 19,845  17,835  18,668  17,452  15,251 
Activity Ratio
Total asset turnover1 0.33 0.42 0.38 0.38 0.31
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net revenues2 6,371  7,064  7,318  6,534  4,569 
Adjusted total assets3 18,684  17,935  18,832  17,738  15,471 
Activity Ratio
Adjusted total asset turnover4 0.34 0.39 0.39 0.37 0.30

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 2019 Calculation
Total asset turnover = Net revenues ÷ Total assets
= 6,489 ÷ 19,845 = 0.33

2 Adjusted net revenues. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted total asset turnover = Adjusted net revenues ÷ Adjusted total assets
= 6,371 ÷ 18,684 = 0.34

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Activision Blizzard Inc.’s adjusted total asset turnover ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 7,292  6,106  6,520  4,830  3,387 
Current liabilities 2,915  2,642  3,663  2,656  2,611 
Liquidity Ratio
Current ratio1 2.50 2.31 1.78 1.82 1.30
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 7,424  6,296  6,799  5,091  3,730 
Adjusted current liabilities3 1,505  1,149  1,734  1,028  909 
Liquidity Ratio
Adjusted current ratio4 4.93 5.48 3.92 4.95 4.10

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,292 ÷ 2,915 = 2.50

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 7,424 ÷ 1,505 = 4.93

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Activision Blizzard Inc.’s adjusted current ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 2,675  2,671  4,390  4,887  4,079 
Shareholders’ equity 12,805  11,357  9,462  9,119  8,068 
Solvency Ratio
Debt to equity1 0.21 0.24 0.46 0.54 0.51
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 2,948  2,984  4,734  5,195  4,231 
Adjusted shareholders’ equity3 13,559  12,653  11,232  10,769  9,848 
Solvency Ratio
Adjusted debt to equity4 0.22 0.24 0.42 0.48 0.43

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 2019 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 2,675 ÷ 12,805 = 0.21

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 2,948 ÷ 13,559 = 0.22

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Activision Blizzard Inc.’s adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 2,675  2,671  4,390  4,887  4,079 
Total capital 15,480  14,028  13,852  14,006  12,147 
Solvency Ratio
Debt to capital1 0.17 0.19 0.32 0.35 0.34
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 2,948  2,984  4,734  5,195  4,231 
Adjusted total capital3 16,507  15,637  15,966  15,964  14,079 
Solvency Ratio
Adjusted debt to capital4 0.18 0.19 0.30 0.33 0.30

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 2,675 ÷ 15,480 = 0.17

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 2,948 ÷ 16,507 = 0.18

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Activision Blizzard Inc.’s adjusted debt-to-capital ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 19,845  17,835  18,668  17,452  15,251 
Shareholders’ equity 12,805  11,357  9,462  9,119  8,068 
Solvency Ratio
Financial leverage1 1.55 1.57 1.97 1.91 1.89
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 18,684  17,935  18,832  17,738  15,471 
Adjusted shareholders’ equity3 13,559  12,653  11,232  10,769  9,848 
Solvency Ratio
Adjusted financial leverage4 1.38 1.42 1.68 1.65 1.57

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 2019 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 19,845 ÷ 12,805 = 1.55

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 18,684 ÷ 13,559 = 1.38

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.’s adjusted financial leverage ratio decreased from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 1,503  1,813  273  966  892 
Net revenues 6,489  7,500  7,017  6,608  4,664 
Profitability Ratio
Net profit margin1 23.16% 24.17% 3.89% 14.62% 19.13%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 991  1,349  404  803  416 
Adjusted net revenues3 6,371  7,064  7,318  6,534  4,569 
Profitability Ratio
Adjusted net profit margin4 15.55% 19.10% 5.52% 12.29% 9.10%

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 2019 Calculation
Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 1,503 ÷ 6,489 = 23.16%

2 Adjusted net income. See details »

3 Adjusted net revenues. See details »

4 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted net revenues
= 100 × 991 ÷ 6,371 = 15.55%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Activision Blizzard Inc.’s adjusted net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 1,503  1,813  273  966  892 
Shareholders’ equity 12,805  11,357  9,462  9,119  8,068 
Profitability Ratio
ROE1 11.74% 15.96% 2.89% 10.59% 11.06%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 991  1,349  404  803  416 
Adjusted shareholders’ equity3 13,559  12,653  11,232  10,769  9,848 
Profitability Ratio
Adjusted ROE4 7.31% 10.66% 3.60% 7.46% 4.22%

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 2019 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,503 ÷ 12,805 = 11.74%

2 Adjusted net income. See details »

3 Adjusted shareholders’ equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 991 ÷ 13,559 = 7.31%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Activision Blizzard Inc.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 1,503  1,813  273  966  892 
Total assets 19,845  17,835  18,668  17,452  15,251 
Profitability Ratio
ROA1 7.57% 10.17% 1.46% 5.54% 5.85%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 991  1,349  404  803  416 
Adjusted total assets3 18,684  17,935  18,832  17,738  15,471 
Profitability Ratio
Adjusted ROA4 5.30% 7.52% 2.15% 4.53% 2.69%

Based on: 10-K (filing date: 2020-02-27), 10-K (filing date: 2019-02-28), 10-K (filing date: 2018-02-27), 10-K (filing date: 2017-02-28), 10-K (filing date: 2016-02-29).

1 2019 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,503 ÷ 19,845 = 7.57%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 991 ÷ 18,684 = 5.30%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Activision Blizzard Inc.’s adjusted ROA improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.