Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Comcast Corp. (NASDAQ:CMCSA)

Analysis of Goodwill and Intangible Assets

Advanced level


Goodwill and Intangible Asset Disclosure

Comcast Corp., balance sheet: goodwill and intangible assets

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Customer relationships 22,884  25,046  13,612  13,478  13,396 
Software 15,357  11,395  8,258  7,017  6,008 
Cable franchise renewal costs and contractual operating rights —  —  1,492  1,460  1,499 
Other agreements and rights 3,958  4,145  2,983  2,700  2,403 
Finite-lived intangible assets, gross carrying amount 42,199  40,586  26,345  24,655  23,306 
Accumulated amortization (17,217) (14,194) (12,785) (11,013) (9,868)
Finite-lived intangible assets, net 24,982  26,392  13,560  13,642  13,438 
Franchise rights 59,365  59,365  59,364  59,364  59,364 
Trade names 8,809  9,633  2,981  2,981  2,857 
FCC licenses 2,337  2,333  2,238  651  651 
Indefinite-lived intangible assets 70,511  71,331  64,583  62,996  62,872 
Intangible assets 95,493  97,723  78,143  76,638  76,310 
Goodwill 68,725  66,154  36,780  35,980  32,945 
Goodwill and intangible assets 164,218  163,877  114,923  112,618  109,255 

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

Item Description The company
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Comcast Corp.’s intangible assets increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Comcast Corp.’s goodwill increased from 2017 to 2018 and from 2018 to 2019.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Comcast Corp.’s goodwill and intangible assets increased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Goodwill

Comcast Corp., adjustments to financial statements

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported) 263,414  251,684  186,949  180,500  166,574 
Less: Goodwill 68,725  66,154  36,780  35,980  32,945 
Total assets (adjusted) 194,689  185,530  150,169  144,520  133,629 
Adjustment to Total Comcast Corporation Shareholders’ Equity
Total Comcast Corporation shareholders’ equity (as reported) 82,726  71,613  68,606  53,943  52,269 
Less: Goodwill 68,725  66,154  36,780  35,980  32,945 
Total Comcast Corporation shareholders’ equity (adjusted) 14,001  5,459  31,826  17,963  19,324 

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).


Comcast Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Comcast Corp., adjusted financial ratios

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Total Asset Turnover
Reported total asset turnover 0.41 0.38 0.45 0.45 0.45
Adjusted total asset turnover 0.56 0.51 0.56 0.56 0.56
Financial Leverage
Reported financial leverage 3.18 3.51 2.72 3.35 3.19
Adjusted financial leverage 13.91 33.99 4.72 8.05 6.92
Return on Equity (ROE)
Reported ROE 15.78% 16.38% 33.11% 16.12% 15.62%
Adjusted ROE 93.26% 214.89% 71.37% 48.41% 42.24%
Return on Assets (ROA)
Reported ROA 4.96% 4.66% 12.15% 4.82% 4.90%
Adjusted ROA 6.71% 6.32% 15.13% 6.02% 6.11%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Comcast Corp.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
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.
Comcast Corp.’s adjusted financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Comcast Corp.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Comcast Corp.’s adjusted ROA deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.

Comcast Corp., 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
As Reported
Selected Financial Data (US$ in millions)
Revenue 108,942  94,507  84,526  80,403  74,510 
Total assets 263,414  251,684  186,949  180,500  166,574 
Activity Ratio
Total asset turnover1 0.41 0.38 0.45 0.45 0.45
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 108,942  94,507  84,526  80,403  74,510 
Adjusted total assets 194,689  185,530  150,169  144,520  133,629 
Activity Ratio
Adjusted total asset turnover2 0.56 0.51 0.56 0.56 0.56

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

2019 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 108,942 ÷ 263,414 = 0.41

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 108,942 ÷ 194,689 = 0.56

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Comcast Corp.’s adjusted total asset turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Total assets 263,414  251,684  186,949  180,500  166,574 
Total Comcast Corporation shareholders’ equity 82,726  71,613  68,606  53,943  52,269 
Solvency Ratio
Financial leverage1 3.18 3.51 2.72 3.35 3.19
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 194,689  185,530  150,169  144,520  133,629 
Adjusted total Comcast Corporation shareholders’ equity 14,001  5,459  31,826  17,963  19,324 
Solvency Ratio
Adjusted financial leverage2 13.91 33.99 4.72 8.05 6.92

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

2019 Calculations

1 Financial leverage = Total assets ÷ Total Comcast Corporation shareholders’ equity
= 263,414 ÷ 82,726 = 3.18

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Comcast Corporation shareholders’ equity
= 194,689 ÷ 14,001 = 13.91

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.
Comcast Corp.’s adjusted financial leverage ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Comcast Corporation 13,057  11,731  22,714  8,695  8,163 
Total Comcast Corporation shareholders’ equity 82,726  71,613  68,606  53,943  52,269 
Profitability Ratio
ROE1 15.78% 16.38% 33.11% 16.12% 15.62%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Comcast Corporation 13,057  11,731  22,714  8,695  8,163 
Adjusted total Comcast Corporation shareholders’ equity 14,001  5,459  31,826  17,963  19,324 
Profitability Ratio
Adjusted ROE2 93.26% 214.89% 71.37% 48.41% 42.24%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

2019 Calculations

1 ROE = 100 × Net income attributable to Comcast Corporation ÷ Total Comcast Corporation shareholders’ equity
= 100 × 13,057 ÷ 82,726 = 15.78%

2 Adjusted ROE = 100 × Net income attributable to Comcast Corporation ÷ Adjusted total Comcast Corporation shareholders’ equity
= 100 × 13,057 ÷ 14,001 = 93.26%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Comcast Corp.’s adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Comcast Corporation 13,057  11,731  22,714  8,695  8,163 
Total assets 263,414  251,684  186,949  180,500  166,574 
Profitability Ratio
ROA1 4.96% 4.66% 12.15% 4.82% 4.90%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Comcast Corporation 13,057  11,731  22,714  8,695  8,163 
Adjusted total assets 194,689  185,530  150,169  144,520  133,629 
Profitability Ratio
Adjusted ROA2 6.71% 6.32% 15.13% 6.02% 6.11%

Based on: 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-01-31), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

2019 Calculations

1 ROA = 100 × Net income attributable to Comcast Corporation ÷ Total assets
= 100 × 13,057 ÷ 263,414 = 4.96%

2 Adjusted ROA = 100 × Net income attributable to Comcast Corporation ÷ Adjusted total assets
= 100 × 13,057 ÷ 194,689 = 6.71%

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