Autodesk Inc. (NASDAQ:ADSK)

The reported and adjusted net income of the company demonstrate significant growth over the analyzed six-year period. Initially, both reported and adjusted net income recorded losses of approximately 81 million and 79 million US dollars respectively in the year ending January 31, 2019. From that low point, there was a substantial turnaround in financial performance by January 31, 2020, with both reported and adjusted net income turning positive and reaching approximately 215 and 216 million US dollars respectively.

In the subsequent years, both reported and adjusted net income showed continued improvement with a more pronounced increase by January 31, 2021. During this period, the reported net income surged to around 1,208 million US dollars, closely mirrored by the adjusted net income at 1,210 million US dollars. This indicates a strong recovery and enhanced profitability.

Following the peak in 2021, a decline in net income was observed in the year ending January 31, 2022, with reported net income decreasing to 497 million US dollars and adjusted net income to 509 million US dollars. Despite this reduction, the levels remained significantly higher compared to the years before 2020.

From January 31, 2022, to January 31, 2024, both reported and adjusted net income rebounded, showing growth in each consecutive year. By the year ending January 31, 2023, reported and adjusted net income rose to approximately 823 million and 823 million US dollars respectively, and further increased to 906 and 908 million US dollars by January 31, 2024.

Overall, the data reflects a trajectory of recovery and growth following initial losses, with both reported and adjusted net income maintaining close values throughout the period. The trends suggest effective management of operations and adjustments leading to a sustained profitability improvement after the challenges seen in 2019.

Net Profit Margin

Both reported and adjusted net profit margins exhibit a significant improvement from negative figures in early 2019 to positive and substantial gains through 2024. The margin shifted from approximately -3.1% in 2019 to around 16.5% by 2024. Notably, there was a peak in 2021, exceeding 31%, followed by a decrease in 2022 and stabilization around 16.4% in the subsequent years. The adjusted margin closely tracks the reported margin, indicating consistency in adjustment processes.

Return on Equity (ROE)

ROE data is available from 2021 onwards, showing an initially very high return exceeding 125% in 2021. This figure decreased to about 59-60% in 2022 but increased again to roughly 72% in 2023 before declining to approximately 49% in 2024. The adjusted ROE values closely mirror the reported figures, suggesting minimal impact from adjustments on equity returns. Overall, ROE displays considerable volatility but remains extraordinarily high compared to typical corporate benchmarks.

Return on Assets (ROA)

ROA started negative at around -1.7% in 2019 but improved consistently, reaching a peak of approximately 16.6% in 2021. This peak was followed by a decline to roughly 5.8-5.9% in 2022, then increased again to about 8.7-9.2% by 2023-2024. Adjusted and reported ROA values are nearly identical throughout this period. The trend suggests enhanced asset efficiency over the years, despite some fluctuations after the 2021 peak.

Net Income Trends

The reported net income experienced a significant turnaround from a loss of 81 million US dollars in January 2019 to substantial profits in subsequent years. It rose sharply to 215 million in 2020, dramatically increased to 1,208 million in 2021, then decreased to 497 million in 2022 before recovering to 823 million in 2023 and slightly increasing to 906 million in 2024. The adjusted net income closely follows the reported figures with slight variations, indicating consistent adjustment factors with similar growth and fluctuation patterns.

Profit Margin Trends

The reported net profit margin follows a pattern consistent with net income. It shifted from a negative margin of -3.14% in 2019 to a positive 6.55% in 2020, peaked at 31.88% in 2021, dropped to 11.33% in 2022, and then rose to approximately 16.44% in 2023 and 16.48% in 2024. The adjusted net profit margin mirrors these movements with negligible differences, indicating that adjustments maintain the overall profitability trend.

General Observations

The company demonstrates a notable recovery and strong performance starting in 2020, achieving peak profitability in 2021. Although there was a decline in both net income and profit margin in 2022, the following years show a positive recovery trend. The close alignment between reported and adjusted figures suggests consistent accounting adjustments without materially altering the financial health portrayal. Overall, the data indicate sustained profitability and improved margins compared to the initial loss year.

Net Income Trends

The reported net income demonstrated a substantial recovery from a loss of $81 million in 2019 to a positive $215 million in 2020. This growth trend continued strongly through 2021 with a peak of $1,208 million, followed by a decline to $497 million in 2022. In 2023 and 2024, net income showed a recovery again, reaching $823 million and $906 million respectively. Adjusted net income closely mirrored these trends, showing very similar values throughout the period, indicating consistency in the adjusted figures relative to reported figures.

Return on Equity (ROE) Analysis

Data for ROE is absent for the years 2019 and 2020. Starting in 2021, both reported and adjusted ROE percentages exhibited extremely high values, with reported ROE at 125.14% and adjusted ROE at 125.31%, reflecting an exceptionally high return relative to equity. However, this peak was followed by a notable decline in 2022 to about 58.5% (reported) and 59.9% (adjusted). In 2023, ROE increased again to approximately 71.9% for both reported and adjusted figures, before decreasing to the range of 48.8%-49.0% in 2024. The similarity between reported and adjusted ROE figures throughout the available years suggests a stable adjustment methodology influencing returns on equity.

Overall Financial Performance

The financial metrics indicate solid profitability improvements beginning in 2020, with temporary volatility in 2022. The high ROE values, despite fluctuating net income, imply efficient equity utilization and possibly changing equity base sizes over the years. Consistency between reported and adjusted figures points to minimal impact from extraordinary items or adjustments on the core profitability indicators during this period.

Net Income Trends

The reported net income demonstrates a significant recovery and growth over the six-year period. The company moved from a loss of $81 million in 2019 to consistent profitability thereafter, with notable increases reaching $1,208 million in 2021. Despite a decline in 2022 to $497 million, the net income rebounded to $823 million in 2023 and further to $906 million in 2024. Adjusted net income follows a similar pattern, closely mirroring reported figures, which indicates minimal discrepancy between reported and adjusted results.

Return on Assets (ROA) Performance

The reported ROA reflects a similar trajectory to net income, showing improvement from a negative 1.71% in 2019 to a peak of 16.6% in 2021. This peak was followed by a decline to 5.77% in 2022 and a subsequent recovery to 8.72% in 2023 and 9.14% in 2024. The adjusted ROA values are slightly higher but closely aligned with reported ROA, suggesting consistent asset efficiency adjustments without significant variance.

General Observations

The data reveals a period of initial financial hardship followed by strong profitability gains and asset utilization improvements. The peak in 2021 for both net income and ROA is significant, though the subsequent drop in 2022 suggests some volatility or one-time impacts. The recovery in the last two periods indicates stabilization and ongoing positive operational performance. The close alignment between reported and adjusted metrics highlights transparency and reliability in the financial adjustments made.