Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Fiserv Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Gross Profit Margin
- The gross profit margin demonstrates relative stability with minor fluctuations throughout the observed periods. Starting at approximately 47.21% in early 2018, it maintained levels around 47% during 2018 and 2019, with a slight dip in early 2020 aligning with the onset of global economic disruptions. Subsequently, there was a noticeable recovery and an upward trend from late 2020 onwards, reaching over 50% by early 2022, which may indicate improved cost management or enhanced pricing power during that period.
- Operating Profit Margin
- The operating profit margin exhibits a pronounced declining trend from 2018 into 2020, dropping from over 30% to levels below 15%. This steep decline suggests increasing operational expenses or challenges converting gross profit into operating income. Beginning in late 2020, the margin stabilized and showed modest improvement, rising to approximately 16% by the first quarter of 2022. Despite recovery signs, the operating margin remains significantly lower compared to its earlier peak, indicating persistent operational pressure or strategic investments affecting profitability.
- Net Profit Margin
- The net profit margin follows a similar trajectory to the operating margin, albeit at lower absolute values. It fell notably from around 25% during 2018 to under 6% by mid-2020, likely impacted by reduced operating profitability and possibly higher non-operating expenses or taxes. Post mid-2020, a gradual recovery is apparent, improving to just over 10% by early 2022. This recovery suggests enhanced bottom-line efficiency though net profitability has not returned to earlier peak levels.
- Return on Equity (ROE)
- Return on equity showed strong performance through 2018, exceeding 50% in multiple quarters. However, a sharp and sustained decline occurred during 2019 and 2020, plummeting to under 3%, reflecting diminished profitability or increased equity base not matched by net income growth. The ROE experienced a slow and steady recovery beginning late 2020, reaching just above 5% by early 2022. This level remains substantially below previous highs, indicating reduced shareholder returns relative to equity invested.
- Return on Assets (ROA)
- The return on assets similarly declined from levels near 14% in 2018 to roughly 1% during 2019 and 2020, highlighting decreased asset efficiency in generating profit. Since late 2020, there is evidence of gradual improvement, with ROA rising to approximately 2.25% by early 2022. While better than its trough, this metric remains low compared to historical performance, suggesting continued challenges in leveraging the asset base effectively.
Return on Sales
Return on Investment
Gross Profit Margin
Fiserv Inc., gross profit margin calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Gross profit | 2,166) | 2,054) | 2,112) | 2,084) | 1,848) | 1,975) | 1,918) | 1,545) | 1,602) | 1,936) | 1,511) | 727) | 704) | 729) | 663) | 681) | 681) | ||||||
| Revenue | 4,138) | 4,257) | 4,163) | 4,051) | 3,755) | 3,832) | 3,786) | 3,465) | 3,769) | 4,045) | 3,128) | 1,512) | 1,502) | 1,551) | 1,412) | 1,420) | 1,440) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 50.67% | 49.91% | 50.75% | 50.73% | 49.10% | 47.40% | 46.47% | 45.77% | 46.38% | 47.88% | 47.72% | 47.23% | 47.19% | 47.30% | 47.74% | 47.68% | 47.21% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | 32.35% | 32.38% | 31.99% | 31.66% | 31.81% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | 88.04% | 88.18% | 88.17% | 87.87% | 87.45% | 86.62% | 85.96% | 85.60% | 85.19% | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | 62.81% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 89.83% | 89.73% | 89.55% | 89.05% | 88.75% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | 73.86% | 73.75% | 72.92% | 72.17% | 71.73% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | 78.04% | 77.23% | 76.37% | 76.63% | 77.58% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | 54.48% | 54.90% | 53.27% | 51.79% | 50.09% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | 82.13% | 82.53% | 82.67% | 82.23% | 82.85% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | 68.86% | 68.93% | 68.38% | 68.35% | 68.27% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | 80.22% | 80.59% | 80.59% | 80.33% | 79.96% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | 78.16% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | 69.77% | 70.05% | 69.74% | 70.02% | 70.42% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 74.32% | 74.41% | 74.47% | 74.62% | 74.90% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | 77.26% | 77.05% | 77.27% | 77.59% | 78.01% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | 79.78% | 79.50% | 79.11% | 78.93% | 78.81% | 78.44% | 78.56% | 78.04% | 77.69% | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | 72.61% | 72.25% | 71.90% | 71.32% | 70.48% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Gross profit margin = 100
× (Gross profitQ1 2022
+ Gross profitQ4 2021
+ Gross profitQ3 2021
+ Gross profitQ2 2021)
÷ (RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021
+ RevenueQ2 2021)
= 100 × (2,166 + 2,054 + 2,112 + 2,084)
÷ (4,138 + 4,257 + 4,163 + 4,051)
= 50.67%
2 Click competitor name to see calculations.
The financial performance over the analyzed periods reveals several notable trends across gross profit, revenue, and gross profit margin for the subject entity.
- Revenue
- The revenue figures exhibit a generally upward trajectory from early 2018 through early 2022, albeit with fluctuations. Starting at a base of approximately 1,440 million USD in the first quarter of 2018, revenue shows gradual growth through 2019 with a significant jump in the third and fourth quarters of 2019 reaching over 4,000 million USD. Following this peak, revenue demonstrates some volatility but remains elevated relative to earlier years, fluctuating mostly between approximately 3,700 and 4,200 million USD during 2020 and 2021, and slightly declining toward early 2022 at around 4,138 million USD. This pattern suggests expansion possibly due to acquisitions or organic growth, coupled with some seasonality or market adjustments.
- Gross Profit
- Gross profit trends are broadly consistent with those of revenue, reflecting corresponding increases over time. Starting at about 681 million USD in early 2018, gross profit remains relatively stable through much of that year. In the latter part of 2019, there is a sharp increase, peaking near 1,936 million USD by the end of 2019, aligning with the revenue surge seen during the same period. Gross profit remains elevated throughout 2020 and 2021, with minor quarterly fluctuations but generally sustaining levels above 1,800 million USD, and reaching over 2,100 million USD in later quarters. The sustained increase in gross profit alongside rising revenue indicates effective cost management and a stable business model during the period under review.
- Gross Profit Margin
- The gross profit margin consistently hovers around the high 40% to low 50% range. Initially, it is around 47% in early 2018, showing slight fluctuations but no dramatic shifts until a discernible upward trend begins in 2021. By that year, gross profit margin improves markedly, reaching above 50% consistently and peaking at approximately 50.75% in late 2021. Despite a slight decline to just below 50% in early 2022, the margin remains elevated compared to earlier periods. This improvement in margin suggests enhanced efficiency in cost controls or a favorable shift in business mix towards higher-margin products or services.
In summary, the data portrays a period of growth in revenue and gross profit, especially notable from late 2019 onwards, accompanied by a strengthening gross profit margin in recent quarters. These trends indicate an overall positive financial performance, with an effective balance of revenue expansion and profitability enhancements over the observed timeframe.
Operating Profit Margin
Fiserv Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Operating income | 846) | 533) | 636) | 644) | 475) | 516) | 542) | 165) | 629) | 478) | 374) | 384) | 373) | 431) | 356) | 358) | 608) | ||||||
| Revenue | 4,138) | 4,257) | 4,163) | 4,051) | 3,755) | 3,832) | 3,786) | 3,465) | 3,769) | 4,045) | 3,128) | 1,512) | 1,502) | 1,551) | 1,412) | 1,420) | 1,440) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | 16.01% | 14.10% | 14.37% | 14.11% | 11.44% | 12.47% | 12.04% | 11.43% | 14.98% | 15.79% | 20.30% | 25.83% | 25.79% | 30.10% | 30.18% | 30.49% | 30.91% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | 15.19% | 15.08% | 15.03% | 14.89% | 14.84% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | 36.72% | 36.76% | 36.53% | 35.75% | 34.75% | 32.93% | 32.10% | 31.36% | 30.10% | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | 0.38% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 28.35% | 26.07% | 25.83% | 25.72% | 25.35% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | -10.14% | -10.58% | -14.16% | -18.68% | -25.36% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | 0.34% | -1.86% | -4.15% | -5.35% | -4.53% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | 12.30% | 11.97% | 9.12% | 10.13% | 10.39% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | 24.10% | 25.95% | 29.04% | 26.95% | 30.30% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | 42.14% | 41.59% | 40.15% | 39.24% | 38.17% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | 37.78% | 37.58% | 37.74% | 37.13% | 36.29% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | -20.43% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | -7.51% | -7.15% | -6.56% | -5.49% | -4.79% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 4.25% | 2.14% | 1.11% | 0.35% | -0.29% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | 3.95% | 4.36% | 4.34% | 4.55% | 5.10% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | 20.72% | 17.48% | 18.17% | 18.81% | 17.82% | 16.83% | 15.77% | 13.85% | 13.64% | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | -3.18% | -5.76% | -7.72% | -10.45% | -13.70% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2022
+ Operating incomeQ4 2021
+ Operating incomeQ3 2021
+ Operating incomeQ2 2021)
÷ (RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021
+ RevenueQ2 2021)
= 100 × (846 + 533 + 636 + 644)
÷ (4,138 + 4,257 + 4,163 + 4,051)
= 16.01%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a general upward trajectory over the observed periods. Starting at approximately $1.44 billion in March 2018, it fluctuated slightly before a marked increase in the second half of 2019, peaking near $4.05 billion by December 2019. Following this peak, revenue experienced some variability but maintained elevated levels above $3.4 billion, reaching around $4.26 billion by March 2022. This suggests significant growth, particularly around late 2019, potentially indicating an acquisition, a business expansion, or seasonal effects influencing revenue recognition.
- Operating Income Patterns
- Operating income demonstrated a more volatile pattern compared to revenue. Initially, it ranged between $356 million and $608 million for most of 2018. There was a notable surge to approximately $629 million in March 2020, which was followed by a sharp drop to $165 million by June 2020. In subsequent quarters, operating income rebounded, stabilizing between $475 million and $846 million through 2021 and early 2022. This fluctuation could reflect temporary operational challenges or strategic investments affecting profitability during mid-2020, possibly linked to external market conditions.
- Operating Profit Margin Analysis
- The operating profit margin showed a declining trend from 2018 through mid-2020. Initially above 30%, it decreased steadily to a low of approximately 11.43% in June 2020. After this trough, the margin improved moderately, hovering between roughly 11.44% and 16.01% through early 2022. The downward trend suggests increasing costs or pricing pressures outpacing revenue growth in earlier periods, while the later improvement indicates some operational efficiency gains or better cost management.
- Correlations and Key Insights
- The simultaneous increase in revenue and declining operating margin up to mid-2020 implies that revenue growth was not accompanied by proportional improvements in profitability. The sharp dip in operating income and margin around mid-2020 could be indicative of extraordinary expenses, restructuring costs, or external disruptions impacting earnings. Post-2020 recovery in both operating income and margin, despite some fluctuations in revenue, suggests adaptive measures were taken to improve profitability. Overall, while top-line growth has been strong, maintaining operational efficiency remains an area of focus.
Net Profit Margin
Fiserv Inc., net profit margin calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to Fiserv, Inc. | 669) | 333) | 428) | 269) | 304) | 300) | 264) | 2) | 392) | 247) | 198) | 223) | 225) | 286) | 227) | 251) | 423) | ||||||
| Revenue | 4,138) | 4,257) | 4,163) | 4,051) | 3,755) | 3,832) | 3,786) | 3,465) | 3,769) | 4,045) | 3,128) | 1,512) | 1,502) | 1,551) | 1,412) | 1,420) | 1,440) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | 10.23% | 8.22% | 8.23% | 7.37% | 5.86% | 6.45% | 6.01% | 5.82% | 8.51% | 8.77% | 12.11% | 16.08% | 16.81% | 20.38% | 25.00% | 25.14% | 24.76% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | 11.53% | 11.69% | 12.05% | 11.95% | 11.74% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | 29.90% | 30.55% | 38.67% | 38.79% | 40.68% | 40.88% | 31.05% | 30.71% | 27.72% | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | -2.46% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 23.59% | 23.29% | 23.30% | 23.47% | 23.34% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | -15.86% | -10.59% | -13.40% | -17.27% | -23.97% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | 0.17% | -2.02% | -5.01% | -7.03% | -6.57% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | 9.46% | 10.01% | 7.81% | 8.16% | 7.76% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | 20.28% | 21.41% | 23.93% | 22.64% | 25.10% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | 38.51% | 36.45% | 35.02% | 33.47% | 32.29% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | 34.16% | 33.96% | 32.32% | 26.34% | 26.13% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | -30.25% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | -11.20% | -11.72% | -11.00% | -9.73% | -8.36% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 19.87% | 19.16% | 17.53% | 12.21% | -0.92% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | 3.56% | 3.90% | 3.99% | 3.30% | 3.15% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | 20.18% | 18.02% | 18.48% | 20.27% | 18.91% | 18.03% | 17.88% | 13.96% | 14.31% | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | -3.81% | -6.54% | -8.14% | -10.77% | -13.68% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
Net profit margin = 100
× (Net income attributable to Fiserv, Inc.Q1 2022
+ Net income attributable to Fiserv, Inc.Q4 2021
+ Net income attributable to Fiserv, Inc.Q3 2021
+ Net income attributable to Fiserv, Inc.Q2 2021)
÷ (RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021
+ RevenueQ2 2021)
= 100 × (669 + 333 + 428 + 269)
÷ (4,138 + 4,257 + 4,163 + 4,051)
= 10.23%
2 Click competitor name to see calculations.
The financial performance exhibits several notable trends over the analyzed periods. Net income attributable to the company shows significant volatility. After a moderate range between 198 and 423 million US dollars from 2018 through early 2019, a pronounced surge occurs during 2020 with a peak of 2,264 million in the second quarter. Following this peak, the net income stabilizes but remains considerably higher than the early periods, reaching 669 million by the first quarter of 2022. This indicates a substantial event or one-time gain impacting earnings in mid-2020, followed by a return to a higher baseline than before.
Revenue demonstrates steady growth across the time span. Starting around 1,400 million US dollars in early 2018, it experiences gradual increases with some jumps in late 2019 and early 2020, reaching peaks above 4,000 million in several quarters of 2019 and 2021. The first quarter of 2022 shows a slight decline from the previous quarter but remains substantially higher than the beginning of the period. Overall, revenue growth is consistent, indicating expanding operations or increased sales volume.
The net profit margin shows a declining trend from 2018 through 2019, dropping from approximately 25% down to below 9% at the end of 2019. This decline suggests either increasing costs relative to revenue or reduced profitability per unit of revenue. During 2020, margins remain low, bottoming near 5.8%, which aligns with the spike in net income that may have distorted operating profitability. From mid-2020 onward, the net profit margin gradually improves, reaching just over 10% by the first quarter of 2022, indicating a recovery in profitability efficiency or better cost controls following the disruptions of the prior year.
In summary, while revenue growth is strong and steady, the net income figures reflect extraordinary variability likely tied to a specific event in mid-2020. Profit margins declined initially but show signs of recovery in the most recent quarters. The overall financial health appears to be improving after a period of margin compression and extraordinary income fluctuations.
Return on Equity (ROE)
Fiserv Inc., ROE calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to Fiserv, Inc. | 669) | 333) | 428) | 269) | 304) | 300) | 264) | 2) | 392) | 247) | 198) | 223) | 225) | 286) | 227) | 251) | 423) | ||||||
| Total Fiserv, Inc. shareholders’ equity | 31,272) | 30,952) | 31,596) | 31,793) | 31,851) | 32,330) | 31,692) | 31,583) | 31,843) | 32,979) | 32,669) | 2,546) | 2,394) | 2,293) | 2,661) | 2,850) | 2,971) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | 5.43% | 4.31% | 4.12% | 3.58% | 2.73% | 2.96% | 2.86% | 2.66% | 3.33% | 2.71% | 2.85% | 37.75% | 41.31% | 51.77% | 54.38% | 50.95% | 47.86% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | 30.45% | 30.25% | 29.87% | 29.81% | 29.33% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | 35.04% | 32.59% | 40.51% | 40.30% | 41.09% | 39.66% | 32.97% | 34.00% | 30.89% | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | -3.44% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 26.96% | 25.39% | 26.34% | 26.96% | 25.72% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | -18.66% | -10.64% | -12.54% | -14.29% | -17.95% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | 0.18% | -1.99% | -4.60% | -5.89% | -5.24% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | 28.98% | 30.38% | 21.44% | 24.31% | 25.11% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | 21.49% | 20.89% | 21.37% | 19.70% | 37.50% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | 44.67% | 43.15% | 41.65% | 39.40% | 38.49% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | — | 262.43% | 144.16% | 131.11% | 107.99% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | -21.07% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | -98.34% | -78.63% | -43.97% | -35.50% | -40.11% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 10.44% | 9.81% | 8.82% | 6.16% | -0.48% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | 5.58% | 6.22% | 6.24% | 5.21% | 5.01% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | 16.87% | 14.31% | 14.63% | 15.88% | 14.80% | 13.54% | 13.66% | 11.10% | 11.64% | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | -5.01% | -8.62% | -11.00% | -15.15% | -20.09% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
ROE = 100
× (Net income attributable to Fiserv, Inc.Q1 2022
+ Net income attributable to Fiserv, Inc.Q4 2021
+ Net income attributable to Fiserv, Inc.Q3 2021
+ Net income attributable to Fiserv, Inc.Q2 2021)
÷ Total Fiserv, Inc. shareholders’ equity
= 100 × (669 + 333 + 428 + 269)
÷ 31,272 = 5.43%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in net income, shareholders’ equity, and return on equity (ROE) over the period examined.
- Net Income Attributable to Fiserv, Inc.
- The net income exhibits significant volatility throughout the quarters. Initially, from March 2018 to December 2019, net income fluctuates within a moderate range, generally below $300 million except for a peak at $392 million in the first quarter of 2020. However, there is an unusual anomaly in the second quarter of 2020 where net income sharply increases to $2,264 million, which is substantially higher compared to all other quarters. After this spike, net income returns to a range similar to historical levels, fluctuating between $269 million and $669 million through the first quarter of 2022, with a notable rise again in the last recorded quarter.
- Total Shareholders’ Equity
- Shareholders’ equity remains relatively stable in the earlier part of the timeline, ranging approximately between $2,293 million and $3,269 million until mid-2019. Starting from the third quarter of 2019, there is a substantial jump in shareholders' equity to over $32,600 million, maintaining a high level slightly above $31,800 million thereafter. This level remains largely consistent through the end of the period with minor fluctuations, indicating a significant increase in book value that sustains over time.
- Return on Equity (ROE)
- The ROE shows a stark contrast before and after mid-2019. Initially, ROE values are notably high, exceeding 40% and peaking above 54% around the third quarter of 2018. However, coinciding with the dramatic increase in shareholders’ equity, ROE drops sharply to a low single-digit range, hovering between approximately 2.7% and 5.4% for the subsequent quarters. This indicates that despite the large equity base, profitability relative to equity has significantly decreased and remained subdued.
Overall, the data suggests a major structural event or transaction around mid-2019, reflected by the sudden and sustained increase in shareholders’ equity and the concurrent drop in ROE. The anomalous spike in net income in the second quarter of 2020 also warrants further investigation, as it deviates significantly from the typical earnings pattern. Post these changes, net income stabilizes at a higher absolute range than pre-2019, yet ROE remains comparatively low due to the expanded equity base.
Return on Assets (ROA)
Fiserv Inc., ROA calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to Fiserv, Inc. | 669) | 333) | 428) | 269) | 304) | 300) | 264) | 2) | 392) | 247) | 198) | 223) | 225) | 286) | 227) | 251) | 423) | ||||||
| Total assets | 75,470) | 76,249) | 75,767) | 75,776) | 74,840) | 74,619) | 72,372) | 77,093) | 72,598) | 77,539) | 77,864) | 19,640) | 11,676) | 11,262) | 10,748) | 10,218) | 10,167) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | 2.25% | 1.75% | 1.72% | 1.50% | 1.16% | 1.28% | 1.25% | 1.09% | 1.46% | 1.15% | 1.20% | 4.89% | 8.47% | 10.54% | 13.46% | 14.21% | 13.99% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | 14.19% | 13.68% | 13.72% | 13.65% | 13.72% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | 18.58% | 17.70% | 22.33% | 21.82% | 22.28% | 21.66% | 17.23% | 17.13% | 15.24% | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | -1.12% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | 16.93% | 15.87% | 16.45% | 16.46% | 16.35% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings Inc. | -5.50% | -3.39% | -5.83% | -6.99% | -8.89% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Datadog Inc. | 0.08% | -0.87% | -2.01% | -2.59% | -2.26% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| International Business Machines Corp. | 4.14% | 4.35% | 3.30% | 3.63% | 3.61% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Intuit Inc. | 14.07% | 13.29% | 13.50% | 11.97% | 20.26% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Microsoft Corp. | 20.24% | 18.36% | 18.13% | 16.87% | 15.78% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Oracle Corp. | 11.35% | 10.48% | 10.86% | 9.44% | 9.03% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palantir Technologies Inc. | -15.01% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Palo Alto Networks Inc. | -4.89% | -4.87% | -4.59% | -3.88% | -3.43% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Salesforce Inc. | 6.85% | 6.14% | 6.01% | 4.10% | -0.31% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ServiceNow Inc. | 2.03% | 2.13% | 2.33% | 1.86% | 1.73% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Synopsys Inc. | 10.21% | 8.66% | 8.88% | 9.69% | 9.02% | 8.27% | 8.19% | 6.48% | 6.70% | — | — | — | — | — | — | — | — | ||||||
| Workday Inc. | -1.98% | -3.24% | -4.32% | -5.73% | -7.23% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2022 Calculation
ROA = 100
× (Net income attributable to Fiserv, Inc.Q1 2022
+ Net income attributable to Fiserv, Inc.Q4 2021
+ Net income attributable to Fiserv, Inc.Q3 2021
+ Net income attributable to Fiserv, Inc.Q2 2021)
÷ Total assets
= 100 × (669 + 333 + 428 + 269)
÷ 75,470 = 2.25%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and shifts over the examined periods.
- Net Income Attributable to Fiserv, Inc.
- Net income figures exhibit considerable volatility throughout the period. Initially, values ranged between 198 and 423 million US dollars from early 2018 to the end of 2019, displaying relatively moderate fluctuations. Starting in the first quarter of 2020, a dramatic increase occurs, peaking sharply at 2,264 million US dollars in the second quarter of 2020. Following this spike, net income stabilizes at a much higher level than prior to 2020, with values consistently exceeding 250 million US dollars per quarter and reaching a notable peak of 669 million US dollars in the first quarter of 2022. This pattern suggests a significant event or transaction around mid-2020 that greatly impacted profitability.
- Total Assets
- Total assets show an upward trajectory from approximately 10,167 million US dollars in early 2018 to just over 11,676 million by the first quarter of 2019. Subsequently, a substantial increase occurs by the second quarter of 2019, with total assets jumping to nearly 19,640 million and then surging dramatically to approximately 77,864 million US dollars in the third quarter of 2019. This elevated level of assets is maintained through subsequent quarters, with minor fluctuations, concluding around 75,470 million in the first quarter of 2022. This sudden and sustained increase indicates a major acquisition, investment, or revaluation impacting the asset base starting mid-2019.
- Return on Assets (ROA)
- ROA percentages decline significantly from strong double-digit levels around 14% in early 2018, down to roughly 1.15% by the end of 2019. This decrease parallels the sharp increase in total assets, suggesting the asset growth outpaced net income initially, diluting overall returns. From 2020 onward, ROA remains relatively stable but low, fluctuating within the 1.09% to 1.75% range, with a slight upward trend into early 2022 where it reaches 2.25%. Despite the net income increase in 2020, the ROA improvement is modest, indicating that although profitability rose, asset efficiency or utilization remains a concern or is adjusting following the prior expansion.
In summary, the company experienced transformative growth characterized by a significant expansion of total assets and a corresponding spike in net income beginning in mid-2019 and mid-2020 respectively. However, this growth period was accompanied by a substantial decline in asset profitability as measured by ROA, which only gradually begins to recover. These patterns suggest a strategic acquisition or investment to expand scale, with subsequent integration and optimization phases reflected in improving income and asset returns in later periods.