Fiserv Inc. (NASDAQ:FISV)

Over the examined five-year period, there is observable volatility in the company's reported current assets as well as its adjusted current assets. Initially, current assets exhibited modest growth from 1975 million US dollars at the end of 2017 to 2224 million US dollars by the end of 2018. However, a substantial surge occurred in 2019, peaking at 17,046 million US dollars, marking a significant increase relative to prior years. This elevated level was followed by a slight decline in 2020 to 16,219 million US dollars before rebounding again in 2021 to 18,870 million US dollars, the highest value recorded across the reviewed periods.

The adjusted current assets follow a parallel trajectory with values closely aligned with the unadjusted current assets, indicating that the adjustments made do not materially alter the asset base profile. Starting from 1,990 million US dollars in 2017, a similar sharp increase to 17,085 million US dollars in 2019 is visible, then a marginal decrease to 16,267 million US dollars in 2020, and finally ascending further to 18,925 million US dollars in 2021.

Trends and Patterns

The data indicates a pronounced expansion in current assets in 2019, which might suggest either an acquisition, significant capital investments, or other factors increasing liquidity or asset acquisition. The slight dip in 2020 may reflect either asset disposals, depreciation, or adjustments arising from external economic conditions in that year. The increase in 2021 points towards a recovery or further asset growth.

Comparative Analysis

Adjusted current assets closely mirror the unadjusted values, which suggests that the adjustments applied had minimal impact on the overall assessment of current assets. This consistency reinforces the reliability of the reported asset figures.

Financial Implications

The pronounced rise in total current assets and their adjusted equivalents towards the end of the period signifies an improving liquidity position and resource availability. These dynamics are positive indicators in the context of working capital management and may support enhanced operational activity or financial stability.

The data indicates the evolution of total assets and adjusted total assets over a five-year period ending in 2021. Initially, both total assets and adjusted total assets exhibit a steady upward trend from 2017 to 2018, with total assets increasing from approximately $10.3 billion to $11.3 billion, and adjusted total assets showing a similar rise.

In 2019, a significant jump is observed in both total assets and adjusted total assets, increasing dramatically to around $77.5 billion and $77.5 billion, respectively. This substantial increase suggests a major acquisition, investment, or revaluation undertaken in that year.

However, following this peak in 2019, there is a slight decrease in both asset measures in 2020. Total assets decline to roughly $74.6 billion, while adjusted total assets also fall slightly to approximately $74.6 billion. This moderation indicates some divestitures, depreciation, or consolidation occurring after the acquisition or revaluation in 2019.

In 2021, both total assets and adjusted total assets show a marginal increase again to around $76.2 billion, signaling stabilization and perhaps moderate growth in the company’s asset base.

Total assets trend

Gradual increase from 2017 to 2018, a dramatic rise in 2019, slight decline in 2020, and modest recovery in 2021.

Adjusted total assets trend

Parallel movement with total assets, suggesting that adjustments did not substantially diverge from reported values.

Insight

The sharp escalation in assets in 2019 likely points to a major strategic event such as an acquisition. The subsequent pattern of slight decrease and modest increase may reflect integration or optimization phases post-event.

The data indicates fluctuations in both current liabilities and adjusted current liabilities over the five-year period. Current liabilities increased slightly from 2017 to 2018, moving from 1,938 million USD to 2,010 million USD. A significant jump is observed in 2019, with the figure rising sharply to 15,727 million USD. This elevated level persists through 2020, with a marginal decrease to 15,637 million USD, and then increases again in 2021 to 18,295 million USD.

Adjusted current liabilities follow a similar pattern but exhibit less volatility. Starting at 1,386 million USD in 2017, these liabilities grew modestly to 1,630 million USD in 2018. In 2019, there is a substantial increase to 15,235 million USD, which remains relatively stable in 2020 at 15,091 million USD. A further increase occurs in 2021, reaching 17,710 million USD.

Trend Analysis:

Both categories show stability in the initial years followed by a marked rise beginning in 2019, suggesting a significant change in the company's short-term obligations or accounting treatment around that time.

The slightly lower values in adjusted liabilities compared to total current liabilities imply the presence of specific adjustments reducing the reported liabilities.

The sustained high levels from 2019 onward indicate potentially increased operational scale, acquisitions, or changes in financing structures contributing to higher short-term liabilities.

The financial data reveals notable trends in the company's liabilities from the end of 2017 through 2021. Both total liabilities and adjusted total liabilities exhibit a significant increase during the period, with some fluctuations observed in the later years.

Total liabilities

The total liabilities increased from $7,558 million at the end of 2017 to $8,969 million by the end of 2018, indicating a moderate rise of approximately 18.7%. However, there was a substantial jump in total liabilities by the end of 2019, reaching $42,682 million, which represents an almost fivefold increase compared to the previous year. Subsequently, liabilities slightly decreased to $41,290 million in 2020, followed by a modest increase to $44,299 million in 2021. This pattern suggests a major event or acquisition occurred in 2019, dramatically impacting the company's liability structure, with stabilization in levels afterward.

Adjusted total liabilities

Adjusted total liabilities followed a similar trajectory. Starting at $6,766 million in 2017, these liabilities rose to $8,133 million in 2018. Then, a sharp increase to $37,774 million in 2019 was observed, mirroring the jump seen in total liabilities, though slightly lower in absolute terms. Adjusted liabilities decreased to $36,141 million in 2020 and rose again to $39,281 million in 2021. This suggests that while adjustments moderate some components, the overall upward trend remains robust, reflecting underlying changes in the company’s financial obligations.

In summary, the data suggests a period of relatively stable liabilities in 2017 and 2018, followed by a significant increase in 2019. This increase likely relates to a major corporate development, such as an acquisition or restructuring. Post-2019, liabilities exhibit moderate adjustment but continue at elevated levels compared to the pre-2019 period, indicating a new baseline for the company’s financial structure.

Total Fiserv, Inc. shareholders’ equity

The shareholders' equity experienced a significant increase from 2018 to 2019, rising from approximately 2.3 billion USD to nearly 33 billion USD. This substantial growth was followed by a slight decline in the subsequent years, with equity amounts of 32.3 billion USD in 2020 and 30.9 billion USD in 2021. The data suggests a one-time or extraordinary event contributing to the sharp rise in 2019, after which the equity stabilized at a high level but with a downward trend.

Adjusted total equity

Adjusted total equity also mirrored the pattern observed in the shareholders' equity, increasing from 3.5 billion USD in 2018 to almost 40 billion USD in 2019. Subsequently, it decreased modestly over the next two years, registering 38.5 billion USD in 2020 and 37 billion USD in 2021. This trend indicates an alignment between adjusted and reported equity, with adjusted figures consistently higher by a notable margin, suggesting adjustments such as goodwill, intangible assets, or other accounting considerations that impact the reported equity.

Overall Analysis

Both metrics reveal a pronounced adjustment or event occurring in 2019 leading to a dramatic rise in equity values, followed by mild declines. The sustained high level post-2019 indicates an overall strong equity base despite the slight reductions. The difference between adjusted and total shareholders’ equity remains stable in relative terms, signifying consistent application of adjustments over the periods. No missing data hampers the analysis for these items, providing a clear view of equity trends across the five years.

Total Reported Debt

The total reported debt increased steadily from 2017 to 2019, rising sharply from $4,900 million to $21,899 million. After reaching this peak in 2019, the debt level slightly declined in 2020 to $20,684 million, followed by a modest increase in 2021 to $21,237 million. Overall, there has been a significant increase in reported debt over the five-year period.

Total Shareholders’ Equity

Shareholders’ equity showed a declining trend from 2017 to 2018, decreasing from $2,731 million to $2,293 million. However, in 2019 it rose dramatically to $32,979 million, maintaining elevated levels through 2020 ($32,330 million) and 2021 ($30,952 million). Despite a slight downward movement in the last two years, equity remains substantially higher compared to the initial years.

Total Reported Capital

Total reported capital, combining debt and equity, followed a similar pattern to debt and equity. It increased markedly from $7,631 million in 2017 to a peak of $54,878 million in 2019, after which it declined slightly but remained above $52 billion through 2020 and 2021. This indicates growth in the company’s capital base with stabilization in the most recent years.

Adjusted Total Debt

Adjusted total debt mirrored the trend of reported debt, rising sharply between 2017 and 2019 from $5,266 million to $22,642 million. It then declined in 2020 to $21,280 million and increased slightly again in 2021 to $21,974 million. The fluctuation suggests some adjustments in debt recognition or classification but overall consistent with the reported debt trend.

Adjusted Total Equity

Adjusted total equity showed a moderate decline from 2017 ($3,881 million) to 2018 ($3,505 million), then surged in 2019 to $39,692 million. It decreased slightly over 2020 and 2021 to $38,498 million and $36,981 million, respectively. This pattern aligns with reported equity movements, indicating a strong equity base after 2018, with slight reductions in the later periods.

Adjusted Total Capital

The adjusted total capital, combining adjusted debt and equity, increased substantially from $9,147 million in 2017 to $62,334 million in 2019. It then experienced a decrease over the next two years, reaching $58,955 million by 2021. This indicates a large expansion of capital during 2019, followed by modest contraction while maintaining a substantially higher capital base relative to earlier years.

Overall Insights

The data reflect a significant transformation in the company's financial structure during the period, particularly noticeable in 2019. Both debt and equity magnitudes expanded dramatically in that year, substantially increasing the total capital employed. Subsequent years saw a stabilization with slight declines, suggesting a period of consolidation after rapid growth. The consistent relationship between reported and adjusted figures points to reliability in financial adjustments, while the increased capital base may have supported strategic initiatives or acquisitions during this timeframe.

The annual financial data reveals significant growth in revenue over the five-year period ending December 31, 2021. Both reported revenue and adjusted revenue demonstrate an upward trajectory, indicating strong business expansion and potentially improved operational performance.

Revenue Trends

The reported revenue increased steadily from 5,696 million US dollars in 2017 to 5,823 million in 2018, representing modest growth in the initial years. A notable surge occurred in 2019, with revenue jumping to 10,187 million US dollars, nearly doubling the previous year's figure. This upward momentum continued through 2020 and 2021, reaching 14,852 million and 16,226 million US dollars respectively. The data points to robust growth, with the revenue nearly tripling within the five-year span.

Adjusted Revenue Trends

Adjusted revenue shows similar growth dynamics, starting at 5,765 million US dollars in 2017 and slightly declining to 5,662 million in 2018. Consistent with reported revenue, adjusted revenue experienced substantial growth beginning in 2019, reaching 10,365 million. This rally persisted in 2020 and 2021, with adjusted revenues of 14,938 million and 16,303 million US dollars respectively. The adjusted figures help confirm the overall increase in core operational performance without significant distortions from one-time items.

Comparative Analysis

The close alignment between reported and adjusted revenue across all periods suggests that the company maintained stable accounting practices and that the primary revenue growth drivers were sustainable and operationally based. The slight decrease in adjusted revenue during 2018, despite a marginal rise in reported revenue, may indicate the presence of adjustment factors during that year, but the overall impact appears minor within the broader growth context.

Summary Insight

The data illustrates a pronounced growth phase beginning in 2019, indicating successful strategic initiatives or market expansions. The sustained rise through 2021 implies continued positive momentum, positioning the company well for future growth opportunities. The consistency between reported and adjusted revenue further validates the reliability of the reported earnings trends demonstrated in this period.

The analysis of the annual financial data reveals notable trends in both net income attributable to the company and adjusted net income over the period from 2017 to 2021.

Net Income Attributable to Fiserv, Inc.

This financial metric experienced fluctuations throughout the five-year span. Beginning at $1,246 million in 2017, net income saw a slight decline to $1,187 million in 2018 and then a more significant drop to $893 million in 2019. In 2020, the net income demonstrated a modest recovery, rising to $958 million. The year 2021 marked a substantial increase to $1,334 million, the highest value observed during the period.

This overall pattern indicates periods of volatility but culminates in a strong rebound by 2021, suggesting improved profitability after a dip in prior years.

Adjusted Net Income

Adjusted net income displayed a somewhat different trajectory. It started at $1,076 million in 2017 and increased marginally to $1,149 million in 2018. This was followed by a gradual decline over the next two years, falling to $1,045 million in 2019 and then to $1,017 million in 2020. In 2021, adjusted net income decreased more sharply to $798 million, marking the lowest point in the given timeframe.

The trend in adjusted net income suggests a weakening in adjusted profitability, contrasting with the recovery seen in the reported net income for the same period. This divergence may point to changes in non-recurring items, accounting adjustments, or operational factors impacting the adjusted figures differently than the reported net income.

In summary, while the net income attributable to the company demonstrates a recovery and overall growth by the end of 2021, adjusted net income reveals a steady decline, particularly pronounced in the final year. This contrast highlights the importance of examining both reported and adjusted results to gain a comprehensive understanding of earnings quality and underlying business performance trends.