Celgene Corp. (NASDAQ:CELG)

Total Asset Turnover

The reported and adjusted total asset turnover ratios show a decline from 2014 to 2015, dropping from approximately 0.44 to 0.34, followed by a recovery trend peaking at 0.43 in 2017 and 2018. This indicates an initial decrease in asset efficiency, then stabilization and modest improvement over the later years.

Current Ratio

The reported and adjusted current ratios exhibit high liquidity levels throughout the period, although with fluctuations. After a slight increase from around 4.6–5.0 in 2014-2015, the ratios declined sharply by 2018 to about 2.23–2.28, signaling a notable reduction in short-term liquidity in the most recent year.

Debt to Equity

The reported debt to equity ratio rises steadily from 1.05 in 2014 to a peak of 3.29 in 2018, indicating increased leverage. The adjusted ratio follows a similar pattern but with somewhat lower values, peaking at 2.28 in 2018. This trend demonstrates progressive growth in the use of debt financing relative to equity.

Debt to Capital

This ratio also indicates a strengthening debt position, increasing from roughly 0.49-0.51 in 2014 to about 0.7-0.77 in 2018. The reported ratio remains consistently slightly higher than the adjusted, confirming the trend toward higher overall leverage.

Financial Leverage

Reported financial leverage climbs sharply from 2.66 in 2014 to 5.76 in 2018, suggesting that the company increasingly relied on debt to finance its assets. Adjusted leverage rises more moderately from 2.42 to 3.96 over the same period, still indicating a significant increase in leverage but at a lower level than reported figures.

Net Profit Margin

The reported net profit margin shows variability, declining from 26.44% in 2014 to a low of about 17.5% in 2015-2016, then recovering to 26.51% in 2018. The adjusted margin displays a sharper decline in the middle years, reaching a low near 11.6%-11.8% in 2016-2017 but rebounding strongly to 28.41% by 2018. Overall, profitability experienced a trough mid-way before improving substantially.

Return on Equity (ROE)

Both reported and adjusted ROE exhibit an upward trajectory with some fluctuations. Reported ROE falls from 30.65% in 2014 to around 27% in 2015, then accelerates to a peak of 65.67% by 2018. Adjusted ROE shows a decrease initially to roughly 18% in 2017 before a notable increase to 48.03% in 2018. This suggests improved shareholder returns in recent years, particularly in 2018.

Return on Assets (ROA)

The reported ROA declines from 11.53% in 2014 to about 5.92% in 2015, subsequently rising steadily to 11.4% by 2018. Adjusted ROA reflects a similar trend but remains lower until a strong increase to 12.13% in 2018. This indicates an initial reduction in asset profitability followed by improvement in the final years analyzed.

The financial data over the five-year period indicates a consistent upward trend in net product sales, which increased from $7,564 million in 2014 to $15,265 million in 2018. This nearly doubling of sales reflects significant growth in revenue generation capacity.

Total assets also showed a steady increase, rising from $17,340 million in 2014 to $35,480 million in 2018. This growth in asset base suggests ongoing investment and expansion activities during the period.

The reported total asset turnover ratio experienced a decline initially, dropping from 0.44 in 2014 to 0.34 in 2015. However, it subsequently recovered and stabilized at 0.43 in both 2017 and 2018. This pattern implies that while asset efficiency decreased during the early part of the period, it improved subsequently and returned close to initial levels by 2018.

Adjusted figures closely mirror the reported data, with adjusted net product sales rising from $7,569 million in 2014 to $15,302 million in 2018 and adjusted total assets increasing from $17,489 million to $35,847 million over the same span. The adjusted total asset turnover followed a pattern identical to the reported ratio, declining in 2015 and then recovering to 0.43 by 2017 and remaining stable through 2018.

Overall, the data reflects substantial growth in sales and asset base, with efficiency in leveraging assets to generate sales returning to earlier levels after a dip in 2015. The parallel movement of reported and adjusted figures suggests consistency in financial reporting adjustments throughout these years.

The analyzed financial data reveals several noteworthy trends in liquidity and asset management over the five-year period ending in 2018. Current assets showed an overall upward trajectory from 2014 to 2017, increasing from 9,713 million US dollars to a peak of 14,892 million US dollars in 2017. However, this was followed by a significant decrease to 9,067 million US dollars in 2018.

Current liabilities remained relatively stable with minor fluctuations between 2014 and 2017, ranging from 1,969 million to 2,987 million US dollars. In 2018, there was a notable increase to 4,057 million US dollars, marking the highest level in the observed period.

The reported current ratio, reflecting the liquidity position, generally exhibited high values indicating strong short-term solvency. It increased from 4.6 in 2014 to a peak of 4.99 in 2017, followed by a marked decline to 2.23 in 2018, signaling a deterioration in the ability to cover current liabilities with current assets in the final year.

The adjusted figures for current assets and liabilities closely mirror the reported values, with only slight variations. Adjusted current assets increased from 9,722 million in 2014 to 14,908 million in 2017 before dropping to 9,083 million in 2018. Adjusted current liabilities showed similar trends, increasing from 1,953 million in 2014 to 2,912 million in 2017, then sharply rising to 3,984 million in 2018.

Consequently, the adjusted current ratio also rose steadily from 4.98 in 2014 to 5.12 in 2017, before declining substantially to 2.28 in 2018. This indicates that after several years of improving liquidity, the last year saw a significant reduction in the cushion available to cover short-term obligations.

Overall trends

Current assets and adjusted current assets showed consistent growth through 2017, followed by a sharp decline in 2018.

Current liabilities and adjusted current liabilities remained relatively stable through 2017, then increased considerably in 2018.

Liquidity ratios (both reported and adjusted current ratios) improved steadily until 2017, indicating strengthening short-term financial health, but deteriorated markedly in 2018.

Insights

The substantial decline in liquidity ratios in 2018 is driven by both a drop in current assets and a significant increase in current liabilities, suggesting a potential tightening in working capital management or an increase in short-term obligations.

The trends highlight the importance of monitoring the changes in both assets and liabilities to assess ongoing liquidity risks.

The financial data indicates a marked increase in the company's total debt from 2014 to 2018. Specifically, total debt rose from US$6,872 million at the end of 2014 to US$20,270 million by the end of 2018, nearly tripling during this period. This trend is mirrored in the adjusted total debt figures, which increased from US$7,068 million to US$20,645 million over the same timeframe.

In contrast, the stockholders’ equity fluctuated throughout the period. It started at US$6,525 million in 2014, experienced a decline in 2015 to US$5,919 million, recovered slightly in subsequent years to reach US$6,921 million in 2017, before falling again to US$6,161 million in 2018. Adjusted stockholders’ equity followed a somewhat different pattern, initially decreasing from US$7,220 million in 2014 to US$6,340 million in 2015, then rising to US$9,052 million by 2018, indicating a positive adjustment or reevaluation over the years.

Regarding leverage, the reported debt-to-equity ratio exhibited an overall upward trend, increasing from 1.05 in 2014 to 3.29 in 2018. This indicates a rising reliance on debt financing relative to equity. The ratio peaked in 2018, signifying a potential increase in financial risk due to higher leverage. The adjusted debt-to-equity ratio also rose initially, from 0.98 in 2014 to 2.28 in 2015, then showed some improvement by decreasing to 1.92 in 2017 before increasing again to 2.28 in 2018. This pattern suggests some variability in the company's adjusted leverage position but confirms an overall higher leverage compared to the beginning of the period.

In summary, the company has significantly increased its debt levels over the five years, while equity levels have shown moderate fluctuations with some improvement in adjusted equity values. The rising debt-to-equity ratios highlight an increase in financial leverage, which could imply greater financial risk and potential concerns regarding debt servicing capacity. The adjustments applied to both debt and equity values modify the leverage perspective somewhat but confirm the general trend of increased indebtedness relative to equity.

Total Debt

Significant increase from 2014 to 2018, almost tripling, indicating growing reliance on debt financing.

Stockholders’ Equity

Variable trend with initial decline, partial recovery, then slight decrease; adjusted equity showed improvement by 2018.

Reported Debt to Equity Ratio

Steady increase, peaking in 2018 at 3.29, signaling increasing leverage and potential financial risk.

Adjusted Debt to Equity Ratio

Fluctuated with initial rise, improvement in 2017, then increase again in 2018; overall higher than at the start of the period.

The financial data presents a consistent upward trend in both total debt and total capital over the five-year period. Total debt increased significantly from $6,872 million in 2014 to $20,270 million in 2018, nearly tripling in size. Correspondingly, total capital also rose from $13,396 million in 2014 to $26,431 million in 2018, almost doubling.

Examining the reported debt to capital ratio reveals a steady increase over the years. The ratio started at 0.51 in 2014 and rose to 0.77 by 2018, indicating a growing reliance on debt relative to capital. This suggests a shift in the company's capital structure towards higher leverage.

The adjusted figures, which likely take into account refinements or additional considerations in debt and capital calculations, follow a similar pattern. Adjusted total debt climbed from $7,068 million in 2014 to $20,645 million in 2018, mirroring the trend observed in reported debt. Adjusted total capital rose from $14,289 million in 2014 to $29,697 million in 2018. The adjusted debt to capital ratio increased from 0.49 in 2014 to 0.70 in 2018, showing a somewhat less pronounced rise compared to the reported ratio but still indicating a notable increase in leverage.

Overall, these trends highlight an expansion in both debt and capital, with a pronounced increase in the proportion of debt financing relative to capital. This increasing leverage may reflect strategic decisions to finance growth or acquisitions, but also introduces higher financial risk due to greater debt obligations. The consistent pattern across both reported and adjusted metrics reinforces the observation of a deliberate shift towards increased debt usage over the analyzed period.

The annual financial data reveals discernible trends in the company's asset base, equity position, and financial leverage over the five-year period ending December 31, 2018.

Total Assets

Total assets showed consistent growth from US$17,340 million in 2014 to US$35,480 million in 2018, nearly doubling over the period. This upward trend indicates significant expansion in the company’s asset base, potentially reflecting acquisitions, capital investments, or organic growth.

Stockholders’ Equity

Stockholders’ equity fluctuated within the range of approximately US$5,919 million to US$6,921 million from 2014 through 2017, before decreasing to US$6,161 million in 2018. The equity's relative stability with a slight decline at the end suggests moderate variation in retained earnings and capital adjustments, which may impact the company’s financial foundation.

Reported Financial Leverage

The reported financial leverage ratio, defined as total assets divided by stockholders’ equity, increased notably from 2.66 in 2014 to 5.76 in 2018. This pattern indicates a growing reliance on debt or liabilities relative to equity, implying increased financial risk and a potentially more aggressive capital structure toward the end of the period.

Adjusted Total Assets

Adjusted total assets follow a similar increasing trajectory as total assets, rising from US$17,489 million in 2014 to US$35,847 million in 2018. This adjustment likely accounts for certain valuation or accounting considerations, yet the overall growth pattern remains consistent with the reported figures.

Adjusted Stockholders’ Equity

The adjusted stockholders’ equity displays a different trend compared to the reported equity, with an initial decrease from US$7,220 million in 2014 to US$6,340 million in 2015, relatively stable values through 2016, followed by an increase to US$9,052 million in 2018. This upward trend in adjusted equity during the latter years suggests improved capitalization or correction for understatements in equity not reflected in the reported figures.

Adjusted Financial Leverage

The adjusted financial leverage ratio reached its peak at 4.29 in 2015 and 2016, then decreased to 3.96 by 2018. This decline contrasts with the upward trend in reported leverage and implies that when adjustments are considered, the company’s leverage was reduced toward the end of the period. This suggests better financial stability and lower risk than indicated by reported metrics alone.

Overall, the company demonstrated substantial asset growth during the observed period. While the reported equity remained relatively flat with a slight decline, adjusted equity showed improvement in later years. The reported leverage increased significantly, signaling elevated financial risk, but the adjusted leverage figures point to more moderate leverage and improved solvency by the end of 2018. These differences underscore the importance of considering adjusted financial metrics for a nuanced understanding of the company's financial health.

The financial data for the company from 2014 to 2018 reveals several notable trends in profitability and sales performance. Both net income and net product sales demonstrate a general upward trajectory, indicating growth in the company's core operations and overall profitability.

Net Income

The net income figures show variability but an overall increase from US$2,000 million in 2014 to US$4,046 million in 2018. After a decline in 2015 to US$1,602 million, net income rebounded in 2016 and saw substantial growth in 2017 and 2018.

Net Product Sales

Net product sales steadily increased across the years, rising from US$7,564 million in 2014 to US$15,265 million in 2018. This consistent growth reflects an expanding revenue base from product sales.

Reported Net Profit Margin

The reported net profit margin experienced an initial decrease from 26.44% in 2014 to a low of 17.49% in 2015, remaining relatively stable around 17.87% in 2016. Thereafter, it improved significantly to 22.66% in 2017 and further to 26.51% in 2018, nearing the initial margin percent of 2014. This suggests enhanced profitability efficiency relative to sales in the latter years.

Adjusted Net Income

Adjusted net income declined sharply from US$2,546 million in 2014 to US$1,296 million in 2016. A recovery began in 2017, followed by a substantial increase to US$4,348 million in 2018, surpassing the 2014 level. This pattern reflects the impact of adjustments, possibly due to non-recurring items or other accounting considerations impacting reported earnings.

Adjusted Net Product Sales

The adjusted net product sales mirrored the trends in reported sales, increasing from US$7,569 million in 2014 to US$15,302 million in 2018, showing steady growth with only minor fluctuations.

Adjusted Net Profit Margin

This margin showed more volatility than the reported net profit margin. It fell significantly from 33.64% in 2014 to 11.59% in 2016 and remained almost flat in 2017 at 11.81%. A strong improvement occurred in 2018, with the margin jumping to 28.41%, indicating a substantial turnaround in profitability when considering adjusted earnings.

In summary, the company demonstrated robust sales growth over the five-year period, accompanied by fluctuating but ultimately improved profitability margins and net income figures. The divergence between reported and adjusted profit margins in some years suggests that special items or accounting adjustments affected comparability, with adjustments showing sharper declines and more pronounced recoveries. The strong performance in 2017 and 2018, both in reported and adjusted terms, indicates a positive shift in operational results and earnings quality towards the end of the period analyzed.

Net Income Trend

Net income demonstrated a fluctuating pattern over the examined periods, initially decreasing from 2000 million US dollars in 2014 to 1602 million in 2015. Subsequently, it recovered in 2016 to 1999 million, followed by a significant increase in the subsequent years, reaching 2940 million in 2017 and 4046 million in 2018. This indicates an overall upward trend in profitability with strong growth in the last two years.

Stockholders’ Equity Trend

Stockholders' equity showed some variability, decreasing from 6525 million US dollars in 2014 to 5919 million in 2015, then rising again to 6599 million in 2016 and further to 6921 million in 2017. However, in 2018, it declined to 6161 million. This suggests fluctuations in the company’s equity base with no clear upward or downward trend over the entire period.

Reported Return on Equity (ROE)

Reported ROE depicted a declining trend from 30.65% in 2014 to 27.07% in 2015, followed by stabilization near 30.29% in 2016. A marked increase occurred thereafter, reaching 42.48% in 2017 and peaking at 65.67% in 2018. The sharp rise in the last two years signals improved profitability relative to equity.

Adjusted Net Income Trend

Adjusted net income declined significantly from 2546 million US dollars in 2014 to 1453 million in 2015 and continued to decrease to 1296 million by 2016. A modest recovery occurred in 2017 to 1535 million, followed by a substantial increase to 4348 million in 2018. This suggests adjustment factors impacted earlier years, with a notable improvement by 2018.

Adjusted Stockholders’ Equity Trend

Adjusted stockholders’ equity generally trended downward initially from 7220 million US dollars in 2014 to 6340 million in 2015 and remained relatively stable at 6560 million in 2016. It then increased significantly to 8350 million in 2017 and further to 9052 million in 2018, indicating a strengthening adjusted equity base in the latter years.

Adjusted Return on Equity (ROE)

Adjusted ROE showed a pronounced decline from 35.26% in 2014 to 22.92% in 2015 and further down to 19.76% in 2016, continuing a downward trajectory to 18.38% in 2017. A strong recovery was observed in 2018, rising to 48.03%. This pattern implies deterioration in adjusted return performance through 2017, followed by significant improvement in 2018.

Overall Analysis

The data reveal volatility in both reported and adjusted profitability and equity metrics across the five-year period. While stockholders’ equity and adjusted equity experienced fluctuations, the sharp increases in net income and ROE in 2017 and especially 2018 indicate a significant improvement in financial performance. Adjusted figures highlight a more conservative profile with lower returns in the middle years but a robust rebound at the end of the period. These trends suggest that underlying operational performance improved markedly near the end of the timeframe despite some previous variability in financial adjustments and equity base.

The financial data indicates varying performance trends over the five-year period ending December 31, 2018. Net income shows a general upward trajectory, starting at 2000 million US$ in 2014, dipping to a low of 1602 million US$ in 2015, recovering to nearly the initial level in 2016, and then increasing significantly to 2940 million US$ in 2017 and further to 4046 million US$ in 2018. This pattern reflects some volatility but ultimately demonstrates strong growth, particularly in the last two years.

Total assets have consistently increased each year, rising from 17,340 million US$ at the end of 2014 to 35,480 million US$ at the end of 2018. This steady increase suggests ongoing asset acquisition or investment, supporting growth and potentially higher operating capacity or market presence.

The reported return on assets (ROA) mirrors net income trends, decreasing sharply from 11.53% in 2014 to 5.92% in 2015, then gradually climbing back to 11.4% by 2018. This indicates a drop in asset profitability in 2015 followed by a robust recovery, reflecting improved efficiency in generating earnings from existing assets in the latter years.

Adjusted net income demonstrates a different pattern, with a high initial figure of 2546 million US$ in 2014, followed by a significant decline to 1453 million US$ in 2015 and further decreases in 2016 and 2017, hitting a low of 1296 million US$. However, there is a notable recovery in 2018, with adjusted net income more than doubling to 4348 million US$, surpassing all previous years. This volatility suggests that non-recurring items or adjustments had a considerable impact on reported profitability over the period.

Adjusted total assets closely align with reported total assets, also showing steady growth from 17,489 million US$ in 2014 to 35,847 million US$ in 2018. The similarity in growth patterns between reported and adjusted total assets indicates consistency in asset valuation despite adjustments.

The adjusted ROA declines steeply from 14.56% in 2014 to 5.34% in 2015, followed by a gradual decrease to 4.6% in 2016 and a slight recovery to 5.06% in 2017. A significant increase is observed in 2018, rising sharply to 12.13%, though it remains slightly lower than the 2014 peak. This pattern reflects fluctuating profitability relative to assets once adjustments are considered, indicating variations in operating performance or accounting treatments impacting the metric.

Overall, the data reveals initial volatility in profitability and returns in 2015, followed by recovery and growth through 2018. The consistent increase in total assets points to ongoing investment, while the divergence between reported and adjusted figures highlights the impact of adjustments on financial results. The strong rebound in 2018, especially in adjusted net income and ROA, suggests improved operational performance or successful management of extraordinary items during that year.