Comcast Corp. (NASDAQ:CMCSA)

The analysis of the quarterly financial ratios highlights several noteworthy trends and changes over the observed periods.

Return on Assets (ROA)

The ROA demonstrates an overall increasing trend with some fluctuations. Starting from the first available data point at 3.85% in March 2020, it progressively rises to a peak of 5.26% in September 2022 before experiencing a notable dip to around 2.09% to 2.48% during the December 2022 to March 2023 quarters. Subsequently, the ROA recovers and grows steadily, reaching its highest value of 8.36% by December 2025. This pattern suggests some volatility in asset efficiency but reflects overall improvement toward the end of the period.

Financial Leverage

Financial leverage shows a general declining trend from 3.22 at March 2020 to 2.87 at December 2021, indicating a reduction in reliance on debt relative to equity during this interval. However, following this, leverage increases slightly to a peak of 3.20 in March 2024, then gradually declines again to 2.83 by December 2025. This fluctuation suggests periods of both increased and decreased debt usage, with a modest deleveraging by the end of the period under review.

Return on Equity (ROE)

The ROE exhibits a pattern of steady growth with intermittent dips. From 11.66% in March 2020, it climbs to a high of 15.35% in September 2022 before sharply declining to a low range between 6.63% and 7.74% in the following quarters until March 2023. Thereafter, ROE significantly strengthens, exceeding 18% in mid-2023 and peaking at 23.65% in December 2025. This upward trend signals enhanced profitability and efficiency in generating returns for shareholders over the long term, despite temporary setbacks.

In summary, the data reflects improving profitability metrics (ROA and ROE) over time with some volatility, alongside a generally moderate use of financial leverage that fluctuates but trends toward slight deleveraging by the end of the period. The pronounced recovery and growth in both ROA and ROE in the later quarters suggest strengthening operational efficiency and capital management.

Net Profit Margin

The net profit margin demonstrates an overall upward trend starting from 10.17% in March 2020, reaching a peak of 18.44% by December 2025. There is a noticeable dip in the fourth quarter of 2022 and the first quarter of 2023, where margins fell sharply to around 4.4–5.4%, before recovering strongly in subsequent quarters. Stability is evident in the 0.46 to 0.48 range from late 2021 through mid-2024, with a notable increase after early 2024.

Asset Turnover

The asset turnover ratio shows a gradual increase from 0.38 in March 2020 to a peak of 0.48 in December 2022. After this peak, the ratio stabilizes around 0.46 through to December 2024, followed by a slight decline to 0.45 in mid-2025. This suggests consistent efficiency in asset utilization over the period, with marginal fluctuations toward the end of the timeline.

Financial Leverage

Financial leverage exhibits a decreasing trend from 3.22 in March 2020 to 2.83 by December 2025, indicating a gradual reduction in reliance on debt or liabilities. Despite minor fluctuations, this trend suggests a strategic effort toward lower leverage, potentially reducing financial risk over time.

Return on Equity (ROE)

Return on Equity parallels net profit margin trends, beginning at 11.66% in March 2020 and progressing to a peak of 23.65% by December 2025. The ROE saw a significant dip in late 2022 and early 2023, correlating with the net profit margin decrease, dropping to approximately 6.63–7.74%. Subsequent quarters show a robust recovery, with sustained high returns through 2025. This indicates strong profitability and effective equity utilization in the longer term, aligning with improved net profit margins.

Tax Burden

The tax burden ratio, available from December 2020 onwards, exhibits relative stability around 0.72 to 0.75 through 2021 and most of 2022. However, it shows a notable decrease to approximately 0.55 around late 2022, followed by a gradual recovery back to roughly 0.75 through 2023 and early 2024. Towards the end of the series, a rising trend is visible, reaching levels as high as 0.85 to 0.86, before declining slightly to 0.82.

Interest Burden

Interest burden ratios start at 0.75 in December 2020, increasing to around 0.82 through much of 2021. From late 2021 into early 2022, a drop to approximately 0.71 is observed, followed by a recovery to the low 0.80s in 2023 and early 2024. The final quarters show a slight decrease in interest burden, ending near 0.81 in June 2025, with a peak at 0.87 noted in late 2024.

EBIT Margin

EBIT margin demonstrates a generally upward trend from 17.85% in December 2020 to peaks above 20% through most of 2021. A marked decline occurs in late 2021 and throughout 2022, dropping to lows around 11-12%. From early 2023, the margin recovers sharply, reaching levels above 20%, until a slight downward adjustment beginning late 2023. The margin culminates with a significant increase to 25.85% by December 2024, indicating improved operational profitability in the later periods.

Asset Turnover

Asset turnover shows a gradual and consistent increase, starting at 0.38 in December 2020, climbing to a peak of about 0.48 in early 2022. It then stabilizes in a range around 0.46 through subsequent periods up to June 2025, suggesting steady efficiency in generating revenue from assets over the years with minor fluctuations.

Financial Leverage

Financial leverage ratios experience a gradual decline from 3.22 in March 2020 to a low near 2.87 in late 2021. Afterward, leverage increases again to approximately 3.18 in late 2022, followed by a moderate downward trend through mid-2025, ending near 2.83. This pattern indicates a cautious approach to debt, balancing reductions with slight increases during the period reviewed.

Return on Equity (ROE)

ROE exhibits an overall rising trend, starting around 11.66% in early 2021 and increasing steadily to peak near 15.35% in late 2021. It then declines sharply to approximately 6.63% to 7.74% through 2022 and early 2023. Following this trough, a strong recovery is seen, with ROE reaching highs above 18% in 2023 and stabilizing near this level before a significant jump to 23.65% by June 2025. These fluctuations suggest varying profitability and efficiency in equity utilization, with marked improvements in the latter periods.

Net Profit Margin

The net profit margin exhibited an overall upward trend from the first recorded value in March 2021 at 10.17% to a peak of 18.44% projected for December 2025. Between March 2021 and December 2022, the margin experienced moderate fluctuations, generally maintaining levels around 11-12%. A notable decrease occurred at the end of 2022 reaching approximately 4.46%, followed by a recovery period throughout 2023 where it steadily increased again, surpassing 12% by March 2024. The margin remained relatively stable between 12% and 13% in mid-2024, before rising significantly in late 2024 and into 2025, suggesting enhanced profitability or efficiency improvements in the forecast period.

Asset Turnover

The asset turnover ratio started at 0.38 in March 2021 and demonstrated a gradual increase reaching 0.48 by December 2022. After this point, the ratio stabilized around 0.46 from March 2023 onwards, maintaining consistency throughout the projected period until mid-2025 where a slight decrease to 0.45 is forecasted. This pattern indicates an initial improvement in the company's efficiency in using assets to generate sales, followed by a plateau suggesting a level of operational efficiency has been achieved with minimal expected variation.

Return on Assets (ROA)

The return on assets generally trended upward from 3.85% in March 2021 to 5.26% by September 2022. A subsequent decline was observed toward the end of 2022 with values dropping to around 2.09%, correlating with the dip seen in net profit margin. However, from early 2023, ROA began a recovery trajectory, increasing steadily to above 5.8% by mid-2024. The forecast indicates a further rise culminating at 8.36% by December 2025. This dynamic suggests the company has improved its ability to convert asset investments into net income over time, recovering strongly from a brief downturn and projecting continued enhancement in asset utilization effectiveness.

The analysis of the quarterly financial ratios reveals distinct patterns and fluctuations across the observed periods. Key profitability metrics and efficiency indicators are included, allowing for an assessment of operational performance and financial health over time.

Tax Burden Ratio

The tax burden ratio displays moderate variability throughout the timeline. Starting from approximately 0.76 in early 2020, it fluctuates slightly but demonstrates a general upward trend towards the latter quarters, reaching about 0.85 to 0.86 near mid-2025. A noticeable dip occurs around late 2021 where the ratio falls to approximately 0.55 to 0.57, indicating a period of lower effective tax rates, before rebounding and stabilizing above 0.7 in subsequent quarters. This pattern suggests temporal changes in tax expenses relative to pre-tax income, possibly attributable to tax planning or legislation changes.

Interest Burden Ratio

The interest burden ratio shows an initial improvement from 0.75 in mid-2020 to a peak near 0.83 by early 2022, indicating a reduction in interest expense impact relative to operating profit. This is followed by a mild decline and then stabilization around the 0.81 to 0.87 range towards mid-2025. The fluctuations imply some variability in interest costs or debt levels but generally reflect a stable interest expense burden over the longer term.

EBIT Margin (%)

EBIT margin demonstrates significant volatility within the observed quarters. The margin improves from about 17.85% in early 2020 to a high of approximately 21.12% by the end of 2020, suggesting enhanced operational profitability. However, a sharp decline occurs in late 2021 and early 2022, dropping to near 11.22% to 12.66%, which may indicate increased costs or decreased revenues during that interval. Subsequently, EBIT margins recover to a stable range around 18% to 20% from early 2023 onward, with a notable peak at 25.85% in the last quarter recorded, indicating an exceptional improvement in earnings efficiency most recently.

Asset Turnover Ratio

The asset turnover ratio shows a consistent gradual increase over the entire period. Starting near 0.38 in 2020, it grows steadily to approximately 0.46 by mid-2023 and maintains this level through mid-2025, with only a slight decline to 0.45 at the end. This trend suggests improved efficiency in generating revenue from the company's asset base, enhancing overall operational productivity.

Return on Assets (ROA) (%)

Return on assets displays marked cyclicality with significant troughs and peaks. Initial growth from 3.85% in early 2020 to over 5% by late 2020 signals strengthening profit generation from asset utilization. However, ROA sharply declines to just above 2% around early 2022, possibly reflecting the challenging market or operational conditions. Following this dip, a recovery trend resumes with ROA stabilizing around 5.75% to 6.1% from 2023 onwards, culminating in a peak of 8.36% by the first quarter of 2025, indicating a robust improvement in overall asset profitability.

Tax Burden Trend

The tax burden ratio presents some fluctuations over the observed periods. Starting at around 0.76 in early 2020, it remains relatively stable until early 2022, when a noticeable decline occurs, dropping to approximately 0.55 mid-2022 through early 2023. Following this low, the tax burden rises again, stabilizing around 0.74 to 0.75 throughout 2023, then gradually increasing further to reach a peak near 0.85 to 0.86 by mid-2025, before slightly easing to 0.82 at the end of the period.

Interest Burden Trend

The interest burden ratio exhibits generally stable behavior with moderate variability. Starting at approximately 0.75 in early 2020, it increases steadily to about 0.82 by late 2021. A drop is observed towards early 2023, reducing the ratio to roughly 0.71-0.72. Subsequently, the ratio trends upwards again, fluctuating between 0.83 and 0.87 from mid-2023 onwards, with the highest values reached near the end of the timeline.

EBIT Margin Trend

The EBIT margin percentage shows marked volatility across the quarters. It begins at approximately 17.85% in early 2020, increases to a peak near 21.12% by late 2020, then declines fairly sharply to a low around 11.22%-12.66% during late 2021 to early 2023. After this trough, the margin recovers significantly, maintaining levels above 19% through 2023 and 2024, culminating in a notable peak of 25.85% by the first quarter of 2025.

Net Profit Margin Trend

The net profit margin follows a similar pattern to the EBIT margin. Commencing at roughly 10.17% in early 2020, it reaches a high around 12.73% by late 2020 before declining sharply to lows near 4.42%-5.40% between late 2021 and early 2023. From this subdued level, the margin steadily improves, stabilizing above 12% throughout 2023 and into 2024, and further rising to an elevated level of 18.44% by the first quarter of 2025.

General Insights

The data reveals a cyclical pattern characterized by peak profitability and higher burdens in 2020, followed by a decline in margins and tax/interest burdens through 2021 and early 2023. Subsequently, a recovery phase is observable from mid-2023 onwards, with improving EBIT and net profit margins supported by rising tax and interest burden ratios. The upward trend in margins towards the end of the period suggests enhanced operational efficiency or favorable financial conditions contributing to stronger profitability.