Stock Analysis on Net

Celgene Corp. (NASDAQ:CELG)

This company has been moved to the archive! The financial data has not been updated since October 31, 2019.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Celgene Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
United States, federal 571 2,545 569 321 489
United States, state and local 65 52 42 63 56
International, taxes currently payable 118 107 106 71 54
Taxes currently payable 754 2,704 717 455 600
United States, deferred income taxes 33 (1,331) (343) (29) (274)
International, deferred income taxes (1) 1 (2) (5) 2
Deferred income taxes 32 (1,330) (344) (33) (272)
Provision for taxes on income 786 1,374 373 422 328

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Item Description The company
Taxes currently payable Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Celgene Corp. taxes currently payable increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.
Deferred income taxes Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Celgene Corp. deferred income taxes decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.
Provision for taxes on income Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Celgene Corp. provision for taxes on income increased from 2016 to 2017 but then slightly decreased from 2017 to 2018 not reaching 2016 level.

Effective Income Tax Rate (EITR)

Celgene Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
U.S. statutory tax rate 21.00% 35.00% 35.00% 35.00% 35.00%
Tax rate differences on foreign operations -11.20% -28.80% -21.10% -21.00% -22.30%
State taxes, net of federal benefit 1.40% 0.60% 0.80% 1.20% 1.00%
Change in valuation allowance 0.30% 0.80% 0.50% 2.00% 0.20%
Acquisition and collaboration related differences 6.00% 2.10% -0.70% 4.50% -0.30%
Changes in uncertain tax positions -0.10% 0.10% -0.40% -0.50% -0.40%
Stock compensation excess tax benefits -0.50% -6.70% 0.00% 0.00% 0.00%
Other 0.30% -0.70% 1.60% -0.40% 0.90%
Effective income tax rate, before 2017 Tax Act 17.20% 2.40% 15.70% 20.80% 14.10%
2017 Tax Act -0.90% 29.40% 0.00% 0.00% 0.00%
Effective income tax rate 16.30% 31.80% 15.70% 20.80% 14.10%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Item Description The company
Effective income tax rate, before 2017 Tax Act Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Celgene Corp. effective income tax rate, before 2017 Tax Act decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

Components of Deferred Tax Assets and Liabilities

Celgene Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
NOL carryforwards 242 249 133 56 5
Tax credit carryforwards 44 11 14 11 5
Share-based compensation 380 317 412 341 251
Other assets and liabilities 59 38 59 58 58
Intangible assets 425 333 809 665 660
Accrued and other expenses 316 278 263 233 192
Deferred tax assets, gross 1,466 1,226 1,690 1,364 1,169
Valuation allowance (195) (277) (143) (91) (40)
Deferred tax assets, net 1,271 949 1,547 1,273 1,129
Plant and equipment, primarily differences in depreciation (7)
Other assets and liabilities (59) (52) (10) (4) (4)
Intangible assets (3,795) (2,008) (1,013) (1,135) (1,183)
Unremitted earnings (317) (317) (317)
Unrealized gains on securities (146) (193) (69) (130) (237)
Deferred tax liabilities (4,000) (2,253) (1,409) (1,586) (1,748)
Net deferred tax asset (liability) (2,729) (1,304) 138 (312) (619)

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Celgene Corp. deferred tax assets, gross decreased from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.
Deferred tax assets, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Celgene Corp. deferred tax assets, net decreased from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Celgene Corp. net deferred tax asset (liability) decreased from 2016 to 2017 and from 2017 to 2018.

Deferred Tax Assets and Liabilities, Classification

Celgene Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Current deferred tax assets 12
Non-current deferred tax assets (included in Other non-current assets) 24 23 138 66 57
Current deferred tax liabilities 131
Non-current deferred tax liabilities 2,753 1,327 378 556

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Item Description The company
Non-current deferred tax assets (included in Other non-current assets) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Celgene Corp. non-current deferred tax assets (included in Other non-current assets) decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.
Non-current deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Celgene Corp. non-current deferred tax liabilities increased from 2016 to 2017 and from 2017 to 2018.

Adjustments to Financial Statements: Removal of Deferred Taxes

Celgene Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Adjustment to Current Assets
Current assets (as reported) 9,067 14,892 10,868 9,401 9,713
Less: Current deferred tax assets, net 12
Current assets (adjusted) 9,067 14,892 10,868 9,401 9,701
Adjustment to Total Assets
Total assets (as reported) 35,480 30,141 28,086 27,053 17,340
Less: Current deferred tax assets, net 12
Less: Noncurrent deferred tax assets, net 24 23 138 66 57
Total assets (adjusted) 35,456 30,118 27,948 26,988 17,272
Adjustment to Current Liabilities
Current liabilities (as reported) 4,057 2,987 2,959 1,969 2,112
Less: Current deferred tax liabilities, net 131
Current liabilities (adjusted) 4,057 2,987 2,959 1,969 1,981
Adjustment to Total Liabilities
Total liabilities (as reported) 29,319 23,220 21,486 21,134 10,815
Less: Current deferred tax liabilities, net 131
Less: Noncurrent deferred tax liabilities, net 2,753 1,327 378 556
Total liabilities (adjusted) 26,566 21,893 21,486 20,757 10,129
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 6,161 6,921 6,599 5,919 6,525
Less: Net deferred tax assets (liabilities) (2,729) (1,304) 138 (312) (619)
Stockholders’ equity (adjusted) 8,890 8,225 6,462 6,231 7,143
Adjustment to Net Income
Net income (as reported) 4,046 2,940 1,999 1,602 2,000
Add: Deferred income tax expense (benefit) 32 (1,330) (344) (33) (272)
Net income (adjusted) 4,078 1,610 1,655 1,569 1,728

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).


Celgene Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Celgene Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Current Ratio
Reported current ratio 2.23 4.99 3.67 4.77 4.60
Adjusted current ratio 2.23 4.99 3.67 4.77 4.90
Net Profit Margin
Reported net profit margin 26.51% 22.66% 17.87% 17.49% 26.44%
Adjusted net profit margin 26.71% 12.41% 14.80% 17.12% 22.84%
Total Asset Turnover
Reported total asset turnover 0.43 0.43 0.40 0.34 0.44
Adjusted total asset turnover 0.43 0.43 0.40 0.34 0.44
Financial Leverage
Reported financial leverage 5.76 4.36 4.26 4.57 2.66
Adjusted financial leverage 3.99 3.66 4.33 4.33 2.42
Return on Equity (ROE)
Reported ROE 65.67% 42.48% 30.29% 27.07% 30.65%
Adjusted ROE 45.87% 19.57% 25.62% 25.17% 24.18%
Return on Assets (ROA)
Reported ROA 11.40% 9.75% 7.12% 5.92% 11.53%
Adjusted ROA 11.50% 5.35% 5.92% 5.81% 10.00%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Celgene Corp. adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Celgene Corp. adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Celgene Corp. adjusted total asset turnover ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.
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.
Celgene Corp. adjusted financial leverage ratio decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Celgene Corp. adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Celgene Corp. adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Celgene Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Current Ratio

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Current assets 9,067 14,892 10,868 9,401 9,713
Current liabilities 4,057 2,987 2,959 1,969 2,112
Liquidity Ratio
Current ratio1 2.23 4.99 3.67 4.77 4.60
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 9,067 14,892 10,868 9,401 9,701
Adjusted current liabilities 4,057 2,987 2,959 1,969 1,981
Liquidity Ratio
Adjusted current ratio2 2.23 4.99 3.67 4.77 4.90

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 9,067 ÷ 4,057 = 2.23

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 9,067 ÷ 4,057 = 2.23

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Celgene Corp. adjusted current ratio improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income 4,046 2,940 1,999 1,602 2,000
Net product sales 15,265 12,973 11,185 9,161 7,564
Profitability Ratio
Net profit margin1 26.51% 22.66% 17.87% 17.49% 26.44%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 4,078 1,610 1,655 1,569 1,728
Net product sales 15,265 12,973 11,185 9,161 7,564
Profitability Ratio
Adjusted net profit margin2 26.71% 12.41% 14.80% 17.12% 22.84%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 Net profit margin = 100 × Net income ÷ Net product sales
= 100 × 4,046 ÷ 15,265 = 26.51%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Net product sales
= 100 × 4,078 ÷ 15,265 = 26.71%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Celgene Corp. adjusted net profit margin ratio deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net product sales 15,265 12,973 11,185 9,161 7,564
Total assets 35,480 30,141 28,086 27,053 17,340
Activity Ratio
Total asset turnover1 0.43 0.43 0.40 0.34 0.44
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net product sales 15,265 12,973 11,185 9,161 7,564
Adjusted total assets 35,456 30,118 27,948 26,988 17,272
Activity Ratio
Adjusted total asset turnover2 0.43 0.43 0.40 0.34 0.44

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 Total asset turnover = Net product sales ÷ Total assets
= 15,265 ÷ 35,480 = 0.43

2 Adjusted total asset turnover = Net product sales ÷ Adjusted total assets
= 15,265 ÷ 35,456 = 0.43

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Celgene Corp. adjusted total asset turnover ratio improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Total assets 35,480 30,141 28,086 27,053 17,340
Stockholders’ equity 6,161 6,921 6,599 5,919 6,525
Solvency Ratio
Financial leverage1 5.76 4.36 4.26 4.57 2.66
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 35,456 30,118 27,948 26,988 17,272
Adjusted stockholders’ equity 8,890 8,225 6,462 6,231 7,143
Solvency Ratio
Adjusted financial leverage2 3.99 3.66 4.33 4.33 2.42

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 35,480 ÷ 6,161 = 5.76

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 35,456 ÷ 8,890 = 3.99

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.
Celgene Corp. adjusted financial leverage ratio decreased from 2016 to 2017 but then slightly increased from 2017 to 2018.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income 4,046 2,940 1,999 1,602 2,000
Stockholders’ equity 6,161 6,921 6,599 5,919 6,525
Profitability Ratio
ROE1 65.67% 42.48% 30.29% 27.07% 30.65%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 4,078 1,610 1,655 1,569 1,728
Adjusted stockholders’ equity 8,890 8,225 6,462 6,231 7,143
Profitability Ratio
Adjusted ROE2 45.87% 19.57% 25.62% 25.17% 24.18%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 4,046 ÷ 6,161 = 65.67%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 4,078 ÷ 8,890 = 45.87%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Celgene Corp. adjusted ROE deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net income 4,046 2,940 1,999 1,602 2,000
Total assets 35,480 30,141 28,086 27,053 17,340
Profitability Ratio
ROA1 11.40% 9.75% 7.12% 5.92% 11.53%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income 4,078 1,610 1,655 1,569 1,728
Adjusted total assets 35,456 30,118 27,948 26,988 17,272
Profitability Ratio
Adjusted ROA2 11.50% 5.35% 5.92% 5.81% 10.00%

Based on: 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31).

2018 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 4,046 ÷ 35,480 = 11.40%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 4,078 ÷ 35,456 = 11.50%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Celgene Corp. adjusted ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.