Fiserv Inc. (NASDAQ:FISV)

The financial data reveals several notable trends over the five-year period analyzed. Starting with asset utilization, the reported total asset turnover ratio shows a significant decline from 0.55 in 2017 to 0.13 in 2019, followed by a modest recovery to 0.21 in 2021. The adjusted total asset turnover mirrors this pattern closely, indicating a sharp reduction in asset efficiency mid-period with slight improvement towards the end.

Current liquidity ratios demonstrate relative stability. The reported current ratio remains near or just above the benchmark of 1.0 throughout the period, fluctuating slightly between 1.02 and 1.11 in the earlier years and settling around 1.03 in 2021. The adjusted current ratio starts higher at 1.44 in 2017 and declines steadily to 1.07 by 2021, indicating a gradual reduction in short-term liquidity cushion but remaining above 1.0, which suggests reasonable short-term financial health.

Leverage ratios exhibit considerable changes. Both reported and adjusted debt to equity ratios peak in 2018 at 2.60 and 1.81 respectively, then decrease sharply to levels below 0.7 from 2019 onwards. Similarly, debt to capital ratios decrease from highs around 0.7 in 2018 to approximately 0.37 by 2021. This indicates a substantial deleveraging effort starting in 2019, reducing financial risk. However, financial leverage ratios, while also declining from very high levels in 2017-2018 (reported at 3.77 and 4.91), stabilize around 2.3 to 2.5 in the later years, showing the entity continues to use some degree of financial leverage.

Profitability measures reveal a marked downward trend. Reported net profit margin declines from 21.88% in 2017 to 6.45% in 2020, with a slight rebound to 8.22% in 2021. Adjusted net profit margin shows a similar trajectory but dips below the reported margin in the final year, reaching 4.89%. Return on equity experiences a dramatic fall from above 45% in 2017 to a low near 2-4% from 2019 onwards. Adjusted ROE confirms this decline, stabilizing around 2-3%. Return on assets follows the same pattern, dropping significantly after 2018 and remaining around 1% or lower through 2021.

Overall, the data points to a period of reduced operational efficiency and profitability beginning around 2019, accompanied by strategic deleveraging. Liquidity remains relatively stable, though showing a moderate tightening trend. The sharp declines in profitability and asset turnover suggest challenges in generating returns from assets and equity during the latter period. The company's financial structure appears to have become more conservative following high leverage in the earlier years, potentially to mitigate risk in response to weakening margins and profitability.

Asset Turnover

Significant decline through 2019 followed by minor recovery; indicates lower asset utilization efficiency in recent years.

Liquidity Ratios

Relatively stable, with reported ratios remaining just above 1.0; slight downward trend in adjusted current ratio suggests moderate liquidity tightening.

Leverage Ratios

Marked deleveraging post-2018 with debt to equity and debt to capital ratios substantially reduced; financial leverage remains moderate and stable.

Profitability Ratios

Declining margins and returns on equity and assets signal reduced profitability; minor improvements noted in 2021 but overall much lower than earlier years.

Financial Health Implications

Shift from aggressive leverage toward conservative financial structure amid reduced operational profitability; suggests risk mitigation efforts during challenging market conditions.

The financial data reveals significant changes in the company's revenue, total assets, and asset turnover ratios over the five-year period from 2017 to 2021.

Revenue Trends

Revenue experienced steady growth from 2017 to 2018, increasing marginally from 5,696 million US dollars to 5,823 million US dollars. A substantial rise is observed thereafter, with revenue almost doubling in 2019 to 10,187 million US dollars. This upward trajectory continued through 2020 and 2021, reaching 14,852 million and 16,226 million US dollars respectively. Adjusted revenue mirrors this pattern closely, confirming the consistency of revenue growth during the period.

Total Assets Dynamics

Total assets showed a moderate increase from 10,289 million US dollars in 2017 to 11,262 million US dollars in 2018. However, a dramatic surge is evident in 2019, with total assets rising sharply to 77,539 million US dollars. Following this peak, total assets slightly declined in 2020 to 74,619 million US dollars and remained relatively stable into 2021 at 76,249 million US dollars. Adjusted total assets follow an almost identical pattern, indicating that asset base changes are robust and not significantly influenced by adjustments.

Asset Turnover Ratio Analysis

Reported total asset turnover decreased from 0.55 in 2017 to 0.52 in 2018, followed by a significant drop to 0.13 in 2019. This decline aligns with the sharp increase in total assets that year, suggesting assets grew faster than revenue at that time. A recovery is visible over 2020 and 2021, where the ratio improves to around 0.20–0.21, indicating better utilization of assets to generate revenue. Adjusted total asset turnover exhibits a similar trend, confirming the observed asset efficiency changes.

Overall, the data indicates the company underwent substantial expansion in asset base starting in 2019, which initially depressed asset turnover ratios. Nonetheless, revenue growth remained strong throughout, leading to a recovery in asset efficiency in the subsequent years. The stability of adjusted figures compared to reported numbers underscores the reliability of these trends.

Current Assets and Liabilities

Current assets exhibited a significant increase from 2,224 million US dollars in 2018 to 17,046 million US dollars in 2019, followed by a slight decrease in 2020 to 16,219 million US dollars and a subsequent increase to 18,870 million US dollars in 2021. Current liabilities followed a similar pattern, rising sharply from 2,010 million US dollars in 2018 to 15,727 million US dollars in 2019, then slightly decreasing in 2020 to 15,637 million US dollars before rising again to 18,295 million US dollars in 2021.

Reported Current Ratio

The reported current ratio remained relatively stable over the analyzed period, fluctuating narrowly between 1.02 and 1.11, indicating that the company maintained a consistent ability to cover its short-term liabilities with short-term assets despite the large changes in absolute values.

Adjusted Current Assets and Liabilities

Adjusted current assets followed a trend consistent with current assets, rising steeply from 2,242 million US dollars in 2018 to 17,085 million US dollars in 2019, then decreasing slightly to 16,267 million US dollars in 2020 before increasing again to 18,925 million US dollars in 2021. Adjusted current liabilities increased from 1,630 million US dollars in 2018 to 15,235 million US dollars in 2019, declined marginally to 15,091 million US dollars in 2020, and subsequently increased to 17,710 million US dollars in 2021.

Adjusted Current Ratio

The adjusted current ratio exhibited a declining trend over the period, dropping from 1.44 in 2017 to 1.07 in 2021. This suggests a gradual reduction in the company's liquidity margin when considering adjustments, highlighting a tightening in the short-term liquidity position despite nominal increases in assets and liabilities.

Overall Insights

The data demonstrates a pronounced expansion in both current assets and liabilities starting in 2019, indicative of increased operational scale or changes in working capital structure. While the nominal current ratio remained relatively stable, the adjusted current ratio declining steadily suggests cautious interpretation of liquidity improvements when accounting for adjustments. The sustained but narrowing liquidity margins call for attention to the company's short-term financial management and potential risks associated with liquidity pressures.

The financial data reveals significant fluctuations and trends in the company's capital structure over the five-year period ending December 31, 2021.

Total Debt

The total debt increased steadily from 2017 to 2018, moving from 4,900 million US dollars to 5,959 million US dollars. A sharp rise occurred in 2019, with total debt jumping dramatically to 21,899 million US dollars. Following this spike, total debt slightly decreased in 2020 to 20,684 million US dollars and then experienced a modest increase again to 21,237 million US dollars in 2021.

Total Shareholders’ Equity

Shareholders’ equity decreased from 2,731 million US dollars in 2017 to 2,293 million US dollars in 2018, indicating a contraction in equity base during this period. However, equity surged significantly in 2019 to 32,979 million US dollars, maintaining a similar high level in 2020 at 32,330 million US dollars before declining slightly to 30,952 million US dollars in 2021.

Reported Debt to Equity Ratio

The reported debt to equity ratio increased sharply from 1.79 in 2017 to 2.6 in 2018, reflecting higher leverage. Subsequently, the ratio plummeted to 0.66 in 2019, followed by further slight decreases and stabilization at 0.64 and 0.69 in 2020 and 2021 respectively, indicating a reduced proportion of debt relative to equity after 2018.

Adjusted Total Debt

Adjusted total debt mirrors the trend of total debt but with slightly higher values. It rose from 5,266 million US dollars in 2017 to 6,337 million US dollars in 2018, then surged substantially to 22,642 million US dollars in 2019. Similar to total debt, adjusted debt decreased marginally to 21,280 million US dollars in 2020 and rose modestly again to 21,974 million US dollars in 2021.

Adjusted Total Equity

Adjusted total equity started at 3,881 million US dollars in 2017, decreased to 3,505 million US dollars in 2018, then experienced considerable growth to 39,692 million US dollars in 2019. It slightly declined to 38,498 million US dollars in 2020 and further to 36,981 million US dollars in 2021, suggesting a strong equity position particularly after 2018.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio followed a pattern similar to the reported ratio. It increased from 1.36 in 2017 to 1.81 in 2018, indicating heightened leverage. This was followed by a significant decrease to 0.57 in 2019, and minor fluctuations with ratios of 0.55 in 2020 and 0.59 in 2021. This points to a substantial reduction in leverage relative to equity following 2018.

In summary, the data exhibits a period of increased debt and leverage up to 2018, followed by a marked increase in equity and a sharp reduction in leverage ratios from 2019 onwards. The stability of equity remains relatively strong despite a slight decline in the most recent years, while debt levels have stayed at elevated but stable levels since 2019. The decreasing debt to equity ratios reflect a strategic shift towards a more balanced capital structure with stronger equity backing over the period analyzed.

Total Debt

Total debt exhibited a significant increase from 2017 to 2019, rising from $4,900 million to $21,899 million. After this peak in 2019, total debt slightly decreased in 2020 to $20,684 million and then slightly increased again in 2021 to $21,237 million. Overall, the total debt more than quadrupled over the five-year period.

Total Capital

Total capital showed moderate growth from 2017 to 2018, increasing from $7,631 million to $8,252 million. However, there was a substantial jump in 2019 to $54,878 million, followed by a slight decline in 2020 and 2021, settling at around $52,189 million. The overall trend indicates a sharp expansion of capital in 2019, with a minor contraction thereafter.

Reported Debt to Capital Ratio

The reported debt to capital ratio started relatively high at 0.64 in 2017 and increased to 0.72 in 2018, indicating rising leverage. However, from 2019 onwards, the ratio dropped sharply to approximately 0.40 and remained stable near this level through 2020 and 2021, suggesting a reduction in leverage or a change in capital structure despite elevated absolute debt levels.

Adjusted Total Debt

Adjusted total debt followed a similar trend to the reported total debt, beginning at $5,266 million in 2017 and rising steadily to $22,642 million in 2019. It then decreased slightly in 2020 to $21,280 million and rose mildly in 2021 to $21,974 million. These adjustments likely account for additional liabilities or refinements in debt measurement but do not materially alter the overall debt trends observed.

Adjusted Total Capital

Adjusted total capital showed consistent incremental growth from 2017 to 2018, increasing from $9,147 million to $9,842 million, followed by a substantial increase in 2019 to $62,334 million. A minor decline ensued in the next two years, reaching $58,955 million by 2021. The pattern mirrors that of reported total capital but at consistently higher levels, indicating adjustments enhancing the capital base.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreased from 0.58 in 2017 to 0.36 in 2019, maintaining a fairly stable level of 0.36 to 0.37 through 2020 and 2021. This decline mirrors the trend in the reported ratio, evidencing a less leveraged capital structure after 2018 despite elevated debt amounts.

The financial data reveals significant variations in asset and equity figures, as well as financial leverage measures, across the analyzed periods.

Total Assets

The total assets showed a steady increase from 10,289 million US dollars in 2017 to 11,262 million in 2018. However, there was a substantial jump to 77,539 million in 2019, followed by a slight decline to 74,619 million in 2020 and a marginal increase to 76,249 million in 2021. This indicates a notable expansion in asset base between 2018 and 2019, with subsequent stabilization.

Total Shareholders’ Equity

Shareholders’ equity declined from 2,731 million in 2017 to 2,293 million in 2018, but then surged dramatically to 32,979 million in 2019. Thereafter, a gradual decrease occurred, reaching 32,330 million in 2020 and 30,952 million in 2021. This pattern suggests a significant capital increase or revaluation in 2019, with some equity reduction in following years.

Reported Financial Leverage

The reported financial leverage ratio rose from 3.77 in 2017 to 4.91 in 2018, but then dropped sharply to 2.35 in 2019. It slightly decreased further to 2.31 in 2020 before increasing modestly to 2.46 in 2021. This implies that the company’s reliance on debt relative to equity initially increased, then reduced considerably with more balanced leverage in the recent years.

Adjusted Total Assets

Adjusted total assets closely mirror the trend seen in total assets, increasing from 10,647 million in 2017 to 11,638 million in 2018, then surging to 77,466 million in 2019. This was followed by decreases to 74,639 million in 2020 and a small rise to 76,262 million in 2021. The adjustment does not significantly alter the overall asset trend.

Adjusted Total Equity

Adjusted total equity grew moderately from 3,881 million in 2017 to 3,505 million in 2018, then escalated sharply to 39,692 million in 2019, followed by decreases to 38,498 million in 2020 and 36,981 million in 2021. Similar to total equity, adjusted equity exhibits a major increase in 2019 with slight declines subsequently.

Adjusted Financial Leverage

The adjusted financial leverage ratio increased from 2.74 in 2017 to 3.32 in 2018, then declined notably to 1.95 in 2019, remaining relatively stable at 1.94 in 2020 before climbing slightly to 2.06 in 2021. This pattern aligns broadly with reported leverage but depicts a somewhat lower leverage level due to adjustments.

Overall, the financial data indicates a transformative event or series of transactions occurring in 2019, reflected in the substantial increases in asset and equity figures. Following this, the company maintained a relatively stable asset base and equity with slight reductions in subsequent years. Leverage ratios reflect an initial increase in debt reliance followed by a marked deleveraging, settling at moderate levels by 2021. Adjustments to assets and equity provide a somewhat more conservative view of financial leverage, but the general trends remain consistent across reported and adjusted figures.

Over the analyzed period, the company's revenue exhibited a significant upward trend. Starting from approximately 5,696 million US dollars in 2017, revenue increased steadily to reach around 16,226 million US dollars by 2021. This indicates robust top-line growth, particularly notable from 2018 onwards where substantial increases are observed year-over-year.

Net income attributable to the company followed a less consistent path. Initial figures show a decline from 1,246 million US dollars in 2017 to 893 million in 2019, followed by a gradual recovery to 1,334 million in 2021. The dip between 2017 and 2019 contrasts with the strong revenue gains, suggesting potential pressures on profitability during that period. The recovery in net income by 2021 aligns with continued revenue growth but remains slightly above the 2017 level.

Profitability margins, both reported and adjusted, display declining trends across the timeframe. The reported net profit margin decreased from 21.88% in 2017 to 8.22% in 2021, with the most significant drop occurring from 2018 to 2019 and reaching its lowest point in 2020. A modest increase is seen in 2021, although margins remain below earlier levels. Similarly, adjusted net profit margin diminished from 18.66% in 2017 to 4.89% in 2021, exhibiting an even steeper decline and reflecting challenges in maintaining profitability despite revenue increases.

Adjusted net income mirrors the patterns seen in net income, starting at 1,076 million US dollars in 2017, peaking slightly in 2018 at 1,149 million, and then declining gradually to 798 million in 2021. This decline occurs despite adjusted revenue growth, which parallels the trend observed in reported revenue, indicating increased costs or other factors impacting adjusted profitability.

Overall, the financial data reveals substantial revenue growth accompanied by decreasing profitability margins and inconsistent net income performance. The divergence between rising revenues and falling profit margins suggests the company may be experiencing rising expenses or other operational challenges affecting earnings quality and efficiency over the examined period.

The analysis of the annual financial data reveals several notable trends and shifts over the five-year period under review.

Net Income Attributable to Fiserv, Inc.

Net income showed an initial decline from 1,246 million USD in 2017 to 893 million USD in 2019, followed by a slight recovery to 958 million USD in 2020 and a significant increase to 1,334 million USD in 2021. This indicates a strong rebound and growth in profitability in the most recent year after a period of decline and stabilization.

Total Shareholders' Equity

Total equity exhibited a dramatic and sharp increase between 2018 and 2019, jumping from approximately 2,293 million USD to nearly 32,979 million USD. This elevated level of equity was largely maintained through 2020 and 2021 with slight decreases observed, ending at 30,952 million USD in 2021. The sudden large increase likely reflects a significant accounting adjustment or the impact of a major transaction such as a merger, acquisition, or equity issuance.

Reported Return on Equity (ROE)

The reported ROE was very high in 2017 and 2018, at 45.62% and 51.77% respectively, but then declined sharply in 2019 to 2.71%, followed by minor improvements in 2020 and 2021, ending at 4.31%. The substantial reduction corresponds with the surge in shareholder equity, diluting the return proportionally despite stable net income in later years.

Adjusted Net Income

Adjusted net income showed a declining pattern throughout the period, starting from 1,076 million USD in 2017 and decreasing to 798 million USD by 2021, with some fluctuations between years. This trend suggests that, after excluding extraordinary items or adjustments, core profitability has decreased gradually.

Adjusted Total Equity

Adjusted total equity increased significantly from 3,881 million USD in 2017 to nearly 39,692 million USD in 2019, followed by a slight decline in 2020 and 2021, mirroring the pattern seen in reported total equity but starting from a higher base in 2017. This again reflects major changes in the capital structure or accounting adjustments during the period.

Adjusted Return on Equity (ROE)

Adjusted ROE showed a strong decline from 27.72% in 2017 to 2.16% in 2021, underscoring a sustained reduction in the efficiency of equity utilization. The drop was most dramatic between 2018 and 2019 and remained low thereafter, indicating a persistent challenge in generating comparable returns relative to the equity base post-adjustment.

In summary, the data reveals a period marked by significant equity base expansion and a corresponding decline in both reported and adjusted returns on equity. While net income showed some recovery in the latest year, adjusted net income followed a downward trend. The large jump in equity figures suggests a transformative event impacting the company's capital structure. Despite this, the returns on equity have not recovered, signaling potential concerns about earnings efficiency relative to the expanded equity.

Over the five-year period, net income attributable to the company displayed fluctuations, beginning with a relatively high level in 2017 at 1,246 million US dollars and generally decreasing through 2019 to 893 million US dollars. This was followed by a slight recovery in 2020 to 958 million US dollars and a marked increase in 2021, reaching 1,334 million US dollars, which is the highest in the period analyzed.

Total assets show a significant increase in 2019, surging from 11,262 million US dollars in 2018 to 77,539 million US dollars. This elevated level persisted through 2020 and 2021 with minor fluctuations, suggesting a major acquisition, revaluation, or restructuring event around 2019 that considerably expanded asset size.

Reported Return on Assets (ROA) displayed a declining trend starting at 12.11% in 2017 and dropping sharply to approximately 1.15% in 2019, before showing modest improvement to 1.75% by 2021. This decline aligns with the substantial asset increase, indicating that the company's profitability relative to its asset base contracted significantly during this period, even though there is some recovery toward the end of the timeframe.

Adjusted net income experienced a moderate decline from 1,076 million US dollars in 2017 to 798 million US dollars in 2021, with some fluctuations in the intervening years. Notably, adjusted net income decreased consistently from 2018 onward, which contrasts with the spike observed in reported net income in 2021, potentially reflecting adjustments for nonrecurring items or accounting approaches.

Adjusted total assets mirrored the trend of total assets, with a substantial increase from 11,638 million US dollars in 2018 to 77,466 million US dollars in 2019, then stable levels thereafter. This reinforces the indication of a major corporate event affecting asset size starting 2019.

Adjusted ROA, which accounts for adjustments to net income and assets, exhibited a notable decline from 10.11% in 2017 to 1.05% in 2021, with the most dramatic drop occurring between 2018 and 2019. This suggests a decrease in operational efficiency or profitability relative to asset base when excluding the effects of non-adjusted items, emphasizing challenges in generating returns from the increased asset base.