Stock Analysis on Net
Stock Analysis on Net
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Comcast Corp. (NASDAQ:CMCSA)

Analysis of Income Taxes

Advanced level

Income Tax Expense (Benefit)

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

US$ in millions

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Federal 2,085  2,026  2,411  3,190  3,210 
State 425  639  277  480  570 
Foreign 600  425  389  194  221 
Current expense 3,110  3,090  3,077  3,864  4,001 
Federal 902  546  (10,659) 1,192  890 
State (15) (167) 10  154  66 
Foreign (324) (89) (6) 98  2 
Deferred expense (benefit) 563  290  (10,655) 1,444  958 
Income tax expense (benefit) 3,673  3,380  (7,578) 5,308  4,959 

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
Current expense Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Comcast Corp.’s current expense increased from 2017 to 2018 and from 2018 to 2019.
Deferred expense (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Comcast Corp.’s deferred expense (benefit) increased from 2017 to 2018 and from 2018 to 2019.
Income tax expense (benefit) Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Comcast Corp.’s income tax expense (benefit) increased from 2017 to 2018 and from 2018 to 2019.

Effective Income Tax Rate (EITR)

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

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Federal statutory tax rate 21.00% 21.00% 35.00% 35.00% 35.00%
Effective income tax rate 21.61% 22.18% -49.46% 36.98% 37.08%

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
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Comcast Corp.’s effective income tax rate increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Components of Deferred Tax Assets and Liabilities

Comcast Corp., components of deferred tax assets and liabilities

US$ in millions

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net operating loss carryforwards 2,017  1,926  481  544  551 
Differences between book and tax basis of investments —  —  —  —  101 
Nondeductible accruals and other 2,779  2,656  2,026  3,789  3,704 
Deferred tax assets, gross 4,796  4,582  2,507  4,333  4,356 
Valuation allowance (1,906) (632) (377) (266) (342)
Deferred tax assets, net 2,890  3,950  2,130  4,067  4,014 
Differences between book and tax basis of property and equipment and intangible assets (29,387) (29,139) (25,154) (37,401) (36,392)
Differences between book and tax basis of investments (702) (491) (466) (144) — 
Differences between book and tax basis of long-term debt (751) (604) (673) (375) (457)
Differences between book and tax basis of foreign subsidiaries and undistributed foreign earnings (143) (85) (39) (960) (731)
Deferred tax liabilities (30,983) (30,319) (26,332) (38,880) (37,580)
Net deferred tax asset (liability) (28,093) (26,369) (24,202) (34,813) (33,566)

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
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Comcast Corp.’s deferred tax assets, gross increased from 2017 to 2018 and from 2018 to 2019.
Deferred tax assets, net Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Comcast Corp.’s deferred tax assets, net increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 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. Comcast Corp.’s net deferred tax asset (liability) decreased from 2017 to 2018 and from 2018 to 2019.

Adjustments to Financial Statements: Removal of Deferred Taxes

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 Liabilities
Total liabilities (as reported) 178,168  177,866  116,143  122,880  111,375 
Less: Noncurrent deferred tax liabilities, net 28,180  27,589  24,256  34,854  33,566 
Total liabilities (adjusted) 149,988  150,277  91,887  88,026  77,809 
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: Net deferred tax assets (liabilities) (28,093) (26,369) (24,202) (34,813) (33,566)
Total Comcast Corporation shareholders’ equity (adjusted) 110,819  97,982  92,808  88,756  85,835 
Adjustment to Net Income Attributable To Comcast Corporation
Net income attributable to Comcast Corporation (as reported) 13,057  11,731  22,714  8,695  8,163 
Add: Deferred income tax expense (benefit) 563  290  (10,655) 1,444  958 
Net income attributable to Comcast Corporation (adjusted) 13,620  12,021  12,059  10,139  9,121 

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 Deferred Taxes (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
Net Profit Margin
Reported net profit margin 11.99% 12.41% 26.87% 10.81% 10.96%
Adjusted net profit margin 12.50% 12.72% 14.27% 12.61% 12.24%
Financial Leverage
Reported financial leverage 3.18 3.51 2.72 3.35 3.19
Adjusted financial leverage 2.38 2.57 2.01 2.03 1.94
Return on Equity (ROE)
Reported ROE 15.78% 16.38% 33.11% 16.12% 15.62%
Adjusted ROE 12.29% 12.27% 12.99% 11.42% 10.63%
Return on Assets (ROA)
Reported ROA 4.96% 4.66% 12.15% 4.82% 4.90%
Adjusted ROA 5.17% 4.78% 6.45% 5.62% 5.48%

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 net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Comcast Corp.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
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.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Comcast Corp.’s adjusted ROE deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted 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 Net Profit Margin

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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 
Revenue 108,942  94,507  84,526  80,403  74,510 
Profitability Ratio
Net profit margin1 11.99% 12.41% 26.87% 10.81% 10.96%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Comcast Corporation 13,620  12,021  12,059  10,139  9,121 
Revenue 108,942  94,507  84,526  80,403  74,510 
Profitability Ratio
Adjusted net profit margin2 12.50% 12.72% 14.27% 12.61% 12.24%

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 Net profit margin = 100 × Net income attributable to Comcast Corporation ÷ Revenue
= 100 × 13,057 ÷ 108,942 = 11.99%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Comcast Corporation ÷ Revenue
= 100 × 13,620 ÷ 108,942 = 12.50%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Comcast Corp.’s adjusted net profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets 263,414  251,684  186,949  180,500  166,574 
Adjusted total Comcast Corporation shareholders’ equity 110,819  97,982  92,808  88,756  85,835 
Solvency Ratio
Adjusted financial leverage2 2.38 2.57 2.01 2.03 1.94

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 = Total assets ÷ Adjusted total Comcast Corporation shareholders’ equity
= 263,414 ÷ 110,819 = 2.38

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.

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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Comcast Corporation 13,620  12,021  12,059  10,139  9,121 
Adjusted total Comcast Corporation shareholders’ equity 110,819  97,982  92,808  88,756  85,835 
Profitability Ratio
Adjusted ROE2 12.29% 12.27% 12.99% 11.42% 10.63%

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 × Adjusted net income attributable to Comcast Corporation ÷ Adjusted total Comcast Corporation shareholders’ equity
= 100 × 13,620 ÷ 110,819 = 12.29%

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

Adjusted Return on Assets (ROA)

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Comcast Corporation 13,620  12,021  12,059  10,139  9,121 
Total assets 263,414  251,684  186,949  180,500  166,574 
Profitability Ratio
Adjusted ROA2 5.17% 4.78% 6.45% 5.62% 5.48%

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 × Adjusted net income attributable to Comcast Corporation ÷ Total assets
= 100 × 13,620 ÷ 263,414 = 5.17%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted 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.