Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Price to Book Value (P/BV) since 2005
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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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Gross Profit Margin
- The gross profit margin maintained a relatively stable trend beginning from the first available data point in March 2017 at 46.91%. It showed a gradual increase over time, reaching a peak of 50.75% in December 2021. There was a slight decline in some quarters, notably in mid-2020, but overall the margin improved, reflecting enhanced profitability at the gross level.
- Operating Profit Margin
- The operating profit margin exhibited significant variability throughout the observed period. Initially, it climbed from 26.9% in March 2017 to a high of 30.91% in June 2017 and remained above 30% until December 2018. However, from 2019 onwards, the margin declined sharply reaching a low point of 11.43% in September 2020. Some recovery was visible thereafter, culminating in a moderate increase to 16.01% by March 2022. This pattern suggests challenges in operating efficiency or increased operating costs during the middle periods, followed by gradual improvement.
- Net Profit Margin
- The net profit margin followed a somewhat similar pattern to operating profit margin but at lower levels. It started at 21.88% in March 2017, peaked at 25.14% in September 2017, then demonstrated a downward trend with notable reductions to a low of 5.82% in September 2020. Subsequent quarters show modest improvement, reaching 10.23% in March 2022. The fluctuations point to varying impacts on the bottom line, potentially influenced by non-operating expenses or other factors affecting overall profitability.
- Return on Equity (ROE)
- The ROE was strong initially, reaching 54.38% in December 2017. Nevertheless, from 2018 onward, it experienced a pronounced decline, particularly from 2019 where it dropped to around 2.85% and remained close to this low level through 2021. By the first quarter of 2022, a slight improvement is detected with ROE rising to 5.43%. This trend implies diminishing returns for shareholders during the latter period, possibly reflecting increased equity base or reduced net income.
- Return on Assets (ROA)
- The ROA displayed a declining trend from 12.11% in March 2017 to a low of approximately 1.09% in December 2020, indicating reduced efficiency in asset utilization. From that point onward, a gradual recovery was observed, with ROA increasing to 2.25% by March 2022. The pattern suggests challenges in generating profit relative to asset base that are being addressed over time.
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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Datadog Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
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 Click competitor name to see calculations.
The financial data reveals several noteworthy trends over the examined quarterly periods. Gross profit demonstrates a generally increasing pattern, with some fluctuations. Starting from $642 million in the first quarter of 2017, gross profit experienced a significant surge in the last two quarters of 2019, reaching $1,511 million and $1,936 million respectively. Subsequently, this item shows continued growth, peaking at $2,166 million by the first quarter of 2022, indicating an overall upward trajectory in profitability.
Revenue follows a similar trend to gross profit, beginning at $1,394 million in the first quarter of 2017. After modest movements through 2017 and 2018, revenue substantially increased towards the end of 2019, reaching $3,128 million and $4,045 million in the third and fourth quarters. Despite some volatility in 2020 and 2021, the revenue figures generally maintain an elevated level compared to earlier years, culminating at $4,138 million in the first quarter of 2022. This increase reflects strong growth in sales over the extended period.
Gross profit margin percentages, available from the first quarter of 2018, indicate a relatively stable and slightly improving trend. The margin oscillates around the mid to high forties percentage points initially (roughly 46.9% to 47.7%) through 2018 and early 2019. From mid-2019 onward, margins progressively improve, crossing the 50% threshold in mid-2021 and reaching just over 50.6% by the first quarter of 2022. This upward movement in gross profit margin suggests enhanced operational efficiency or favorable product/service mix contributing to a higher proportion of profit relative to revenue.
Overall, the analysis highlights a period of substantial growth for the company, marked by escalating revenue and gross profit, coupled with a steadily increasing gross profit margin. The pronounced increases in late 2019 suggest a major positive shift, potentially resulting from strategic initiatives, market conditions, or business expansion, which have sustained through to early 2022. The consistent margin improvement further implies improved cost management or pricing strategies enhancing profitability.
- Gross Profit
- Increased from $642 million in Q1 2017 to $2,166 million in Q1 2022, with significant growth observed from late 2019 onward.
- Revenue
- Rose from $1,394 million in Q1 2017 to $4,138 million in Q1 2022, showing substantial growth particularly during 2019, maintaining high levels afterward.
- Gross Profit Margin
- Improved steadily from approximately 46.9% in early 2018 to over 50.6% by early 2022, reflecting enhanced profitability relative to sales.
Operating Profit Margin
Fiserv Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Datadog Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
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 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue demonstrates an overall upward trajectory from March 31, 2017, through March 31, 2022. Starting at approximately 1,394 million USD in the first quarter of 2017, revenue experiences periodic fluctuations but generally increases over the years, reaching a peak near 4,257 million USD in December 2021 before a slight decline to 4,138 million USD by March 2022. A notable jump in revenue is observed during the 2019-2020 period, suggesting a significant event or acquisition that nearly doubles the quarterly figures compared to prior years.
- Operating Income Dynamics
- Operating income shows considerable variability over the examined periods. Initially, it remains relatively stable around the 360-425 million USD range in 2017, increasing to a higher plateau with peaks exceeding 600 million USD in early 2018 and early 2020. A sharp decline is visible in the middle of 2020, plausibly due to external pressures, with a subsequent recovery through 2021. By March 2022, operating income resumes growth, reaching its highest recorded point of 846 million USD, indicative of improving operational efficiency or scale benefits relative to earlier quarters.
- Operating Profit Margin Observations
- The operating profit margin percentage displays a declining trend from about 27% in late 2017, dropping steadily through 2019 and reaching a low near 11% in late 2020, signaling a reduction in profitability or increased operating costs relative to revenue during this timeframe. From 2021 onwards, the margin recovers modestly, stabilizing between 14% and 16%, but it does not return to the higher levels seen in the earlier years. This suggests the company has faced profitability pressure possibly due to increased expenditures or margin compression despite rising revenues.
- Summary of Financial Performance
- The data highlights a complex financial environment characterized by growing revenues overshadowed by fluctuating operating income and a declining yet recovering operating margin. The significant increase in revenue and operating income around 2019-2020 points to a strategic milestone, such as expansion or acquisition, while mid-2020's dip likely reflects external challenges. The incomplete recovery of profit margins indicates ongoing challenges in cost management or competitive pricing pressures. Overall, the company shows resilience and growth capacity but faces profitability optimization challenges that warrant close attention.
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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income attributable to Fiserv, Inc. | ||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Datadog Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
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 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income Attributable to Fiserv, Inc.
- The net income shows considerable volatility throughout the observed period. Initially, it remained relatively stable around the 220 to 250 million USD range in 2017 and early 2018. A notable spike occurs in the fourth quarter of 2017, reaching 546 million USD, followed by a decline and fluctuation near 200 to 300 million USD in subsequent quarters. The year 2020 reflects a dramatic peak at 2,264 million USD in the second quarter, which is likely an outlier or influenced by extraordinary factors. After this peak, net income normalizes to a range between 250 to 670 million USD, with a gradual upward trend toward early 2022, ending at 669 million USD.
- Revenue
- Revenue figures generally display an upward trend with some fluctuations. From roughly 1,400 million USD in early 2017, revenue progresses to over 4,000 million USD by 2019, which may indicate a change in reporting, such as including additional segments or acquisitions (notably the jump to 3,128 million USD in Q3 2019 and subsequent quarters). Post-2019, revenue stabilizes in the range of approximately 3,400 to 4,200 million USD with some quarterly variations, ending slightly lower at 4,138 million USD in Q1 2022 compared to the peak in Q4 2021 at 4,257 million USD.
- Net Profit Margin
- The net profit margin exhibits a declining trend starting from approximately 22% in the first quarter where data is available, rising slightly to a peak of 25.14% in Q3 2018, followed by a consistent decrease through 2019 into early 2020. The margin falls to a low of around 5.82% in Q3 2020, after which it gradually improves, reaching 10.23% in Q1 2022. This pattern suggests margins were under pressure around 2019-2020, potentially due to cost increases or revenue mix changes, with subsequent margin recovery in late 2021 and early 2022.
- Overall Financial Trend Analysis
- Overall, the financial data indicates a period of growth in revenue with a substantial increase around late 2019, accompanied by fluctuations in net income and net profit margin. The extraordinary spike in net income in mid-2020 stands out as a significant anomaly, likely related to non-recurring factors. Despite the volatility in profitability metrics, recent quarters show signs of recovery in net profit margin, suggesting improved cost management or more favorable operating conditions. The data reflects a pattern of revenue growth accompanied by variable profitability, indicating potential operational adjustments and evolving market conditions.
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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income attributable to Fiserv, Inc. | ||||||||||||||||||||||||||||
| Total Fiserv, Inc. shareholders’ equity | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Datadog Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
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 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals a varied performance trend. Net income attributable to the company exhibited fluctuations over the examined periods. Initially, the net income showed moderate values with a notable peak at the end of 2017 (546 million USD), followed by a general decline and stabilization around the 200-300 million USD range in subsequent periods. A significant anomaly occurred in the second quarter of 2020, where net income spiked dramatically to 2,264 million USD, greatly exceeding all previous quarters. After this spike, the net income returned to values consistent with earlier quarters, with a slight upward trend towards the end of the data period, culminating at 669 million USD in the first quarter of 2022.
Total shareholders' equity demonstrated relative stability with minor fluctuations between 2,300 million USD and 3,300 million USD up to the third quarter of 2019. Thereafter, a substantial jump is observed, with equity values rising sharply to over 32,600 million USD in the latter part of 2019 and maintaining near this elevated level throughout the remaining quarters. This suggests a significant change in capital structure or accounting treatment during this period, as the equity level remained consistently high, ending at approximately 31,272 million USD in the first quarter of 2022.
The Return on Equity (ROE) metric was only available starting from the end of 2017, showing initially very high values above 40%, peaking at 54.38% at the end of 2018. However, from 2019 onwards, ROE declined sharply to single-digit figures, reaching lows around 2.7-3.5% for most quarters in 2019 and 2020. In 2021 and early 2022, a gradual improvement in ROE is visible, increasing moderately from approximately 2.7% to over 5% by the first quarter of 2022. The sharp decline in ROE after 2018 coincides with the substantial increase in shareholders’ equity, diluting the return relative to the much larger equity base.
In summary, the data indicate a period of significant financial restructuring or extraordinary events around late 2019 and early 2020, reflected in the sudden jump in shareholders' equity and the anomalous spike in net income during mid-2020. The ROE trend supports the interpretation of a changed equity base impacting profitability measures. Post these events, net income and ROE show signs of recovery while maintaining elevated equity levels, suggesting a new operational baseline.
- Net Income
- Moderate fluctuations with a major spike in Q2 2020; general stabilization afterward with a slight upward trend towards early 2022.
- Total Shareholders’ Equity
- Stable and moderate until Q3 2019 followed by a sharp and sustained increase to over 32 billion USD.
- Return on Equity (ROE)
- Very high until end of 2018, then a steep decline coinciding with increased equity; gradual improvement noted through early 2022.
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 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income attributable to Fiserv, Inc. | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Datadog Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
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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), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
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 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income Attributable to Fiserv, Inc.
-
The net income demonstrates considerable volatility over the series of reported quarters. Initially, there are moderate fluctuations around the 200-250 million USD range through 2017 and 2018. A notable decline occurs during late 2019 and early 2020, reaching a minimal value of 2 million USD in June 2020, indicating a significant drop possibly due to extraordinary events or operational challenges during that time frame. However, the net income quickly recovers and sharply increases to 264 million USD by September 2020, followed by stability around the 269-333 million USD range for the subsequent quarters. The data culminate in a strong surge to 669 million USD in the first quarter of 2022, suggesting a substantial improvement in profitability or one-time gains in the latest period.
- Total Assets
-
Total assets maintain a relatively stable level from 2017 through early 2019, fluctuating modestly around 9,700 to 11,600 million USD. Thereafter, assets spike sharply to 19,640 million USD by mid-2019, followed by a very large jump to approximately 77,800 million USD in late 2019 and early 2020. This sharp increase may correspond with acquisitions, revaluations, or other significant balance sheet changes. Post-2020, total assets remain elevated, fluctuating slightly but consistently around the 74,000 - 76,000 million USD range through early 2022, indicating a new asset base scale that is substantially higher than in earlier years.
- Return on Assets (ROA)
-
ROA is presented from the end of 2017 onward, showing a high and then sharply declining trend. The highest ROA values are recorded between December 2017 and June 2018, reaching over 14%. Following this peak, ROA drops steeply, falling to below 5% by the end of 2019 and further declining to near 1% in early to mid-2020. This reduction coincides with reduced net income despite an expanded asset base. After this low point, the ratio gradually improves through 2021 and early 2022, reaching above 2% by the first quarter of 2022, which signals a recovery in asset profitability though it remains significantly below earlier peak levels.
- Overall Trends and Insights
-
The data indicate a phase of relative stability followed by a period of substantial change around 2019-2020. The sharp increase in total assets without a proportional immediate increase in net income results in a pronounced drop in ROA. The net income recovers significantly after mid-2020, contributing to gradual ROA improvement. The substantial rise in net income in the latest quarter suggests improving financial performance which may result from operational enhancements, improved market conditions, or other strategic initiatives. The substantial increase in total assets implies strategic investments or acquisitions that have expanded the company's asset base significantly.