Stock Analysis on Net

Fiserv Inc. (NASDAQ:FISV)

Analysis of Goodwill and Intangible Assets

Microsoft Excel LibreOffice Calc

Goodwill and Intangible Asset Disclosure

Fiserv Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Customer relationships 15,271  16,187  2,642  2,293  2,200 
Acquired software and technology 2,562  2,607  591  579  507 
Trade names 618  620  120  117  117 
Purchased software 913  680  261  241  230 
Capitalized software and other intangibles 1,332  942  810  737  641 
Identifiable intangible assets, gross carrying amount 20,696  21,036  4,424  3,967  3,695 
Accumulated amortization (5,338) (3,394) (2,281) (2,085) (1,862)
Identifiable intangible assets, net book value 15,358  17,642  2,143  1,882  1,833 
Goodwill 36,322  36,038  5,702  5,590  5,373 
Intangible assets and goodwill 51,680  53,680  7,845  7,472  7,206 

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Item Description The company
Identifiable intangible assets, net book value Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Fiserv Inc. identifiable intangible assets, net book value increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.
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. Fiserv Inc. goodwill increased from 2018 to 2019 and from 2019 to 2020.
Intangible assets and goodwill Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Fiserv Inc. intangible assets and goodwill increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

Adjustments to Financial Statements: Removal of Goodwill

Fiserv Inc., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Adjustment to Total Assets
Total assets (as reported) 74,619  77,539  11,262  10,289  9,743 
Less: Goodwill 36,322  36,038  5,702  5,590  5,373 
Total assets (adjusted) 38,297  41,501  5,560  4,699  4,370 
Adjustment to Total Fiserv, Inc. Shareholders’ Equity
Total Fiserv, Inc. shareholders’ equity (as reported) 32,330  32,979  2,293  2,731  2,541 
Less: Goodwill 36,322  36,038  5,702  5,590  5,373 
Total Fiserv, Inc. shareholders’ equity (adjusted) (3,992) (3,059) (3,409) (2,859) (2,832)

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).


Fiserv Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Fiserv Inc., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Total Asset Turnover
Reported total asset turnover 0.20 0.13 0.52 0.55 0.57
Adjusted total asset turnover 0.39 0.25 1.05 1.21 1.26
Financial Leverage
Reported financial leverage 2.31 2.35 4.91 3.77 3.83
Adjusted financial leverage
Return on Equity (ROE)
Reported ROE 2.96% 2.71% 51.77% 45.62% 36.60%
Adjusted ROE
Return on Assets (ROA)
Reported ROA 1.28% 1.15% 10.54% 12.11% 9.55%
Adjusted ROA 2.50% 2.15% 21.35% 26.52% 21.28%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Fiserv Inc. adjusted total asset turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Fiserv Inc. adjusted ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Fiserv Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Revenue 14,852  10,187  5,823  5,696  5,505 
Total assets 74,619  77,539  11,262  10,289  9,743 
Activity Ratio
Total asset turnover1 0.20 0.13 0.52 0.55 0.57
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 14,852  10,187  5,823  5,696  5,505 
Adjusted total assets 38,297  41,501  5,560  4,699  4,370 
Activity Ratio
Adjusted total asset turnover2 0.39 0.25 1.05 1.21 1.26

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 14,852 ÷ 74,619 = 0.20

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 14,852 ÷ 38,297 = 0.39

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Fiserv Inc. adjusted total asset turnover ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets 74,619  77,539  11,262  10,289  9,743 
Total Fiserv, Inc. shareholders’ equity 32,330  32,979  2,293  2,731  2,541 
Solvency Ratio
Financial leverage1 2.31 2.35 4.91 3.77 3.83
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 38,297  41,501  5,560  4,699  4,370 
Adjusted total Fiserv, Inc. shareholders’ equity (3,992) (3,059) (3,409) (2,859) (2,832)
Solvency Ratio
Adjusted financial leverage2

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 Financial leverage = Total assets ÷ Total Fiserv, Inc. shareholders’ equity
= 74,619 ÷ 32,330 = 2.31

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Fiserv, Inc. shareholders’ equity
= 38,297 ÷ -3,992 =


Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Fiserv, Inc. 958  893  1,187  1,246  930 
Total Fiserv, Inc. shareholders’ equity 32,330  32,979  2,293  2,731  2,541 
Profitability Ratio
ROE1 2.96% 2.71% 51.77% 45.62% 36.60%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Fiserv, Inc. 958  893  1,187  1,246  930 
Adjusted total Fiserv, Inc. shareholders’ equity (3,992) (3,059) (3,409) (2,859) (2,832)
Profitability Ratio
Adjusted ROE2

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 ROE = 100 × Net income attributable to Fiserv, Inc. ÷ Total Fiserv, Inc. shareholders’ equity
= 100 × 958 ÷ 32,330 = 2.96%

2 Adjusted ROE = 100 × Net income attributable to Fiserv, Inc. ÷ Adjusted total Fiserv, Inc. shareholders’ equity
= 100 × 958 ÷ -3,992 =


Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Fiserv, Inc. 958  893  1,187  1,246  930 
Total assets 74,619  77,539  11,262  10,289  9,743 
Profitability Ratio
ROA1 1.28% 1.15% 10.54% 12.11% 9.55%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income attributable to Fiserv, Inc. 958  893  1,187  1,246  930 
Adjusted total assets 38,297  41,501  5,560  4,699  4,370 
Profitability Ratio
Adjusted ROA2 2.50% 2.15% 21.35% 26.52% 21.28%

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

2020 Calculations

1 ROA = 100 × Net income attributable to Fiserv, Inc. ÷ Total assets
= 100 × 958 ÷ 74,619 = 1.28%

2 Adjusted ROA = 100 × Net income attributable to Fiserv, Inc. ÷ Adjusted total assets
= 100 × 958 ÷ 38,297 = 2.50%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Fiserv Inc. adjusted ROA deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.