Comcast Corp. (NASDAQ:CMCSA)

The analysis of the intangible asset components over the periods from 2020 to 2024 reveals several noteworthy trends and shifts.

Goodwill

Goodwill exhibits a declining trend, decreasing from approximately 70,669 million US dollars in 2020 to 58,209 million US dollars in 2024. The reduction is particularly significant between 2021 and 2022, where it dropped by over 11,695 million US dollars, continuing a gradual decline through 2024.

Franchise Rights

Franchise rights remain remarkably stable throughout the period, maintaining a value close to 59,400 million US dollars with negligible fluctuations, indicating no significant impairments or additions.

FCC Licenses

FCC licenses show stable values, hovering around 2,800 million US dollars across all years, suggesting no material changes in regulatory or licensing assets.

Indefinite-Lived Intangible Assets

These assets are also steady, maintaining just above 62,000 million US dollars, reflecting limited movement and no substantial impairment or purchase activity.

Customer Relationships

Customer relationships display a downward pattern overall, decreasing from 22,197 million US dollars in 2020 to 20,500 million US dollars in 2024. A notable dip occurs from 2021 to 2022, followed by mild fluctuations, signaling possible amortization or write-downs.

Software

Software shows consistent growth, increasing from 17,819 million US dollars in 2020 to 24,900 million US dollars in 2024, reflecting ongoing investments or capitalizations in software development.

Other Agreements and Rights

This category gradually declines from 12,394 million US dollars in 2020 to 11,400 million US dollars in 2024, with minor recoveries after 2022, indicating modest amortization or disposals balanced by occasional additions.

Finite-Lived Intangible Assets, Gross Carrying Amount

The gross carrying amount for finite-lived intangible assets fluctuates moderately, rising from 52,410 million US dollars in 2020 to a peak of 55,300 million US dollars in 2023 before increasing further to 56,800 million in 2024. This suggests acquisitions or capital expenditures outweigh disposals.

Accumulated Amortization

Accumulated amortization shows a consistent and significant increase in absolute value (more negative), moving from -19,825 million US dollars in 2020 to -34,000 million US dollars in 2024. This trend reflects ongoing amortization expenses against finite-lived intangible assets.

Finite-Lived Intangible Assets, Net

Net finite-lived intangible assets decrease steadily from 32,585 million US dollars in 2020 to 22,800 million US dollars in 2024, consistent with rising amortization outpacing gross carrying amounts.

Total Intangible Assets

Total intangible assets show a downward progression, contracting from 94,754 million US dollars in 2020 to 85,000 million US dollars in 2024, indicating net amortization and impairments exceed additions.

Goodwill and Intangible Assets Combined

The aggregate of goodwill and intangible assets decreases from 165,423 million US dollars in 2020 to 143,209 million US dollars in 2024. This reflects the overall decline in goodwill and intangible assets, with the largest decreases evident between 2021 and 2022.

In summary, the data reveals a consistent reduction in goodwill and net finite-lived intangible assets, primarily driven by impairments and amortization. Meanwhile, investments in software appear to be increasing steadily. Franchise rights, FCC licenses, and indefinite-lived intangibles remain largely stable. The balance between additions to intangible assets and accumulated amortization suggests ongoing capital investment offset by systematic amortization and some asset value declines over the five-year period.

The financial data reveals several notable trends over the five-year period analyzed.

Total Assets

Both reported and goodwill adjusted total assets exhibited modest fluctuations. Reported total assets showed a slight decline from 2021 to 2022, decreasing from 275,905 million USD to 257,275 million USD, before gradually increasing again through 2024 to reach 266,211 million USD. Similarly, adjusted total assets followed a comparable pattern, falling in 2022 to 198,781 million USD from 205,716 million USD in 2021, then rising steadily to 208,002 million USD by 2024. Overall, the adjustments related to goodwill significantly reduced the asset base compared to reported figures.

Shareholders’ Equity

Reported shareholders’ equity demonstrated a peak in 2021 at 96,092 million USD, followed by a marked decline in 2022 to 80,943 million USD, and a gradual recovery in subsequent years, ending at 85,560 million USD in 2024. The adjusted shareholders’ equity, which presumably excludes goodwill and related intangible assets, showed considerably lower absolute values but a somewhat similar trend. It peaked in 2021 at 25,903 million USD, then declined in 2022 to 22,449 million USD, followed by a steady increase to 27,351 million USD in 2024. The divergence between reported and adjusted equity underscores the material impact of goodwill and intangible assets on the equity base.

Net Income

Reported net income attributable to Comcast Corporation exhibited variability, increasing notably from 10,534 million USD in 2020 to 14,159 million USD in 2021 before dropping sharply in 2022 to 5,370 million USD. This was followed by a strong rebound, with net income rising to 15,388 million USD in 2023 and further to 16,192 million USD in 2024. Adjusted net income closely tracked reported figures except for 2022, where there was a significant difference between reported (5,370 million USD) and adjusted net income (13,470 million USD). This suggests that impairment charges or other goodwill-related adjustments likely affected the reported income considerably in that year.

In summary, the data indicates that goodwill and intangible asset adjustments materially affect the reported financial position and performance, particularly evident in 2022. The company's underlying asset base and equity, when adjusted, show less volatility, and the adjusted net income figures suggest more stable operational profitability than the reported net income during the period affected by impairment or related charges.

Net Profit Margin

The reported net profit margin experienced a notable decline from 12.17% in 2021 to 4.42% in 2022, followed by a strong recovery reaching 13.09% in 2024. Adjusted net profit margin, which excludes goodwill effects, shows a smoother trend, maintaining stability above 10.17% since 2020 and recovering more steadily after 2022. This indicates that the goodwill adjustment alleviates volatility seen in the reported figures, reflecting a more consistent underlying profitability.

Total Asset Turnover

The reported total asset turnover demonstrated a gradual increase from 0.38 in 2020 to 0.47 in 2022, then slightly declined and stabilized at 0.46 in 2023 and 2024. Conversely, the adjusted total asset turnover, which accounts for goodwill, consistently improved, rising from 0.51 in 2020 to 0.61 in 2022, and maintaining a strong level around 0.59 in the last two years. This suggests that asset utilization efficiency, when excluding goodwill, is consistently higher and more stable.

Financial Leverage

Reported financial leverage fluctuated moderately, decreasing from 3.03 in 2020 to 2.87 in 2021, then increasing to 3.20 in 2023 before a slight decline to 3.11 in 2024. The adjusted financial leverage is significantly higher, with a decreasing trend from 10.34 in 2020 to 7.60 in 2024. The reduction in adjusted leverage indicates a gradual deleveraging or improved equity base when goodwill is excluded, which contrasts with the lower and more stable reported leverage values.

Return on Equity (ROE)

Reported ROE exhibited volatility, increasing from 11.66% in 2020 to 14.73% in 2021, falling sharply to 6.63% in 2022, then sharply recovering to nearly 19% in 2024. The adjusted ROE, however, showed a steady upward trend, rising from 53.6% in 2020 to a peak of 65.66% in 2023 before a slight decline in 2024. This discrepancy suggests that the goodwill adjustment reveals a substantially stronger and more consistent return on equity that is masked by reported figures due to goodwill effects.

Return on Assets (ROA)

Reported ROA mirrored the volatility of net profit margin and ROE, with a drop from 5.13% in 2021 to 2.09% in 2022, followed by recovery to 6.08% in 2024. Adjusted ROA showed a more stable increase from 5.18% in 2020 to 7.78% in 2024, indicating improved asset profitability once goodwill is adjusted for. This pattern highlights that excluding goodwill provides a clearer picture of underlying asset performance.

The financial data reveals noteworthy trends in both reported and adjusted net income, as well as corresponding net profit margins over the five-year period from 2020 to 2024.

Net Income Trends

Both reported and adjusted net income exhibit an overall upward trajectory, with some fluctuations. Starting at approximately $10.5 billion in 2020, net income increased significantly to around $14.2 billion in 2021. In 2022, a marked decline is observed in the reported net income, dropping to about $5.4 billion, while the adjusted net income remains higher at roughly $13.5 billion. The alignment of reported and adjusted figures resumes thereafter, with income rising to $15.4 billion in 2023 and further to $16.2 billion in 2024, indicating recovery and growth beyond the previous peak.

Profit Margin Analysis

The reported net profit margin follows a similar pattern to net income, starting at just over 10% in 2020 and increasing to 12.17% in 2021. A significant reduction to 4.42% occurs in 2022, mirroring the dip in reported net income. Adjusted net profit margin, however, is consistently higher during this year at 11.09%, suggesting non-recurring items or goodwill impairments affected the reported figure. Both margin types recover strongly in subsequent years, reaching 12.66% in 2023 and 13.09% in 2024, indicating improved profitability.

Insights and Observations

The divergence between reported and adjusted figures in 2022 points to one-off impairments or similar adjustments impacting financial performance that year. The adjusted data provides a clearer indication of underlying business performance, which remains relatively stable and improves steadily. The consistent increase in both net income and profit margins in the final two years suggests effective management actions or favorable market conditions driving enhanced profitability. Overall, company profitability demonstrates resilience, overcoming transient setbacks to achieve growth in the latter part of the period analyzed.

Total Assets

The reported total assets displayed minor fluctuations over the five-year period. Initially, there was a slight increase from 273,869 million US dollars in 2020 to 275,905 million in 2021, followed by a decline to 257,275 million in 2022. The value then rose again to 264,811 million in 2023 and further to 266,211 million in 2024, indicating a moderate recovery but remaining below the peak recorded in 2021.

The adjusted total assets, which likely exclude goodwill or other intangible assets, showed a similar trend but with consistently lower values as expected. Adjusted assets increased marginally from 203,200 million in 2020 to 205,716 million in 2021, decreased to 198,781 million in 2022, and subsequently climbed to 205,543 million in 2023 and 208,002 million in 2024. This pattern reflects stabilization and slight growth after a dip in 2022.

Total Asset Turnover Ratios

The reported total asset turnover improved steadily between 2020 and 2022, moving from 0.38 to 0.47, signifying an increase in the efficiency of using assets to generate revenue during this period. However, the ratio slightly declined to 0.46 in 2023 and remained at that level in 2024, indicating a plateau in asset utilization efficiency.

On an adjusted basis, asset turnover ratios were higher throughout the timeline, starting from 0.51 in 2020 and peaking at 0.61 in 2022. This indicates better efficiency when goodwill and other intangible assets are excluded from total assets. Similar to the reported ratio, adjusted turnover slightly decreased to 0.59 in 2023 and persisted at this level in 2024, suggesting a similar stabilization pattern.

Insights

The data suggests a phase of asset base contraction in 2022, followed by recovery and stabilization in subsequent years. Efficiency in asset usage, as reflected by turnover ratios, showed improvement up to 2022 but then stabilized with slight declines. The consistently higher adjusted turnover ratios imply that the non-goodwill asset base is utilized more effectively in generating revenue compared to the total reported asset base. Monitoring these trends could be important for assessing capital allocation and operational performance going forward.

Total Assets

The reported total assets initially increased slightly from 273,869 million USD in 2020 to 275,905 million USD in 2021, followed by a decline to 257,275 million USD in 2022. They then experienced a moderate recovery to 264,811 million USD in 2023 and a marginal increase to 266,211 million USD in 2024. The adjusted total assets follow a similar pattern, decreasing from 203,200 million USD in 2020 to 198,781 million USD in 2022 before gradually rising to 208,002 million USD by 2024. Overall, total assets show a temporary dip around 2022 with subsequent stabilization.

Shareholders’ Equity

The reported shareholders’ equity rose from 90,323 million USD in 2020 to a peak of 96,092 million USD in 2021, then declined sharply to 80,943 million USD in 2022. This was followed by modest increases in 2023 and 2024, reaching 85,560 million USD. The adjusted equity displays a different scale but a somewhat similar trend, increasing substantially from 19,654 million USD in 2020 to 25,903 million USD in 2021, then falling to 22,449 million USD in 2022. It subsequently recovered progressively to 27,351 million USD by 2024. The pattern suggests a significant reduction in equity in 2022 before gradual recovery.

Financial Leverage

The reported financial leverage ratio decreased from 3.03 in 2020 to 2.87 in 2021, indicating a slight reduction in leverage, before rising to 3.18 in 2022 and stabilizing around 3.1 by 2024. This reflects moderate fluctuations but an overall higher leverage position post-2021 compared to the initial period. The adjusted financial leverage ratio shows a more volatile profile, dropping from a high 10.34 in 2020 to 7.94 in 2021, increasing to 8.85 in 2022, and then gradually declining to 7.6 in 2024. The elevated and fluctuating adjusted leverage ratios suggest a significant impact of goodwill adjustments on the leverage profile, with the company maintaining relatively high adjusted leverage throughout the observed period.

The financial data reveals various trends concerning the company's profitability and equity position over the five-year period ending December 31, 2024. Several key observations can be made from the reported and goodwill-adjusted figures.

Net Income Trends

The reported net income attributable to the company exhibited fluctuations, increasing from $10,534 million in 2020 to $14,159 million in 2021, followed by a significant decline to $5,370 million in 2022. Subsequently, net income rebounded substantially to $15,388 million in 2023 and further to $16,192 million in 2024. The adjusted net income, which accounts for goodwill, shows a similar pattern except for the year 2022 where the adjusted figure is markedly higher at $13,470 million compared to the reported $5,370 million. This suggests that goodwill adjustments notably impacted reported profitability that year.

Shareholders’ Equity

The reported total shareholders’ equity rose moderately from $90,323 million in 2020 to $96,092 million in 2021 but then decreased to $80,943 million in 2022. Minor increases followed with equity levels reaching $82,703 million in 2023 and $85,560 million in 2024. Adjusted shareholders’ equity, which excludes goodwill, started significantly lower at $19,654 million in 2020 but increased steadily over the period, reaching $27,351 million by 2024. This indicates that while the reported equity was affected by fluctuations possibly related to intangible assets, the underlying tangible equity showed a consistent upward trend.

Return on Equity (ROE)

The reported ROE reflected a volatile pattern with an increase from 11.66% in 2020 to 14.73% in 2021, a sharp drop to 6.63% in 2022, followed by strong recoveries to 18.61% in 2023 and 18.92% in 2024. In contrast, the adjusted ROE, which removes the influence of goodwill, demonstrated higher and more stable performance levels, ranging from 53.6% in 2020 and peaking at 65.66% in 2023 before slightly declining to 59.2% in 2024. This suggests that the company's return metrics improved significantly when adjusting for goodwill, highlighting the profitability of the company's core equity base without the impact of intangible assets.

Overall, the analysis indicates that while the company experienced some volatility in reported net income and equity during the middle of the period, performance rebounded strongly by the end of 2024. Goodwill-adjusted figures provide a clearer picture of sustained profitability and equity growth, suggesting underlying operational strength despite reported fluctuations. The elevated adjusted ROE values highlight efficient utilization of tangible equity over the entire period.

The financial data exhibits notable fluctuations and trends over the five-year period.

Net Income

The reported net income attributable to the company increased from 10,534 million US dollars in 2020 to a peak of 14,159 million in 2021, experienced a significant decline to 5,370 million in 2022, and then rebounded sharply to 15,388 million in 2023, followed by a modest increase to 16,192 million in 2024. The adjusted net income values reflect a similar pattern but show higher stability, with the 2022 decline being less pronounced (13,470 million) and aligned with the reported figures in subsequent years.

Total Assets

Reported total assets remained relatively stable around the 270,000 million US dollars mark in 2020 and 2021, but declined to 257,275 million in 2022 before slightly recovering in 2023 and 2024. The adjusted total assets, which exclude goodwill, followed a similar downward trend but with lower absolute values, indicating that goodwill constitutes a substantial portion of total assets. The adjusted asset base decreased from 203,200 million in 2020 to 198,781 million in 2022, then rose moderately through 2024.

Return on Assets (ROA)

The reported ROA shows considerable volatility, with an increase from 3.85% in 2020 to 5.13% in 2021, a pronounced drop to 2.09% in 2022, and a subsequent recovery to 5.81% in 2023 and 6.08% in 2024. In contrast, the adjusted ROA, which factors out goodwill, indicates more consistent and generally improving profitability, rising from 5.18% in 2020 to 7.78% in 2024. This suggests that the company's core asset returns strengthened gradually over the period, despite fluctuations in reported figures.