Moderna Inc. (NASDAQ:MRNA)

Return on Assets (ROA)

The ROA exhibited significant volatility over the examined period. Starting at a negative value of -32.34% in 2019, it improved substantially to -10.18% in 2020, indicating a reduction in asset-related losses. The metric then surged to a positive 49.46% in 2021, suggesting enhanced asset efficiency and profitability. Although it declined thereafter, ROA remained positive at 32.34% in 2022 before reverting to a negative figure of -25.58% in 2023. This fluctuation reflects inconsistent asset utilization and profitability from year to year.

Financial Leverage

Financial leverage showed an overall decreasing trend after peaking in 2020. Initially, the ratio stood at 1.35 in 2019, rising markedly to 2.86 in 2020, indicating increased reliance on debt or other liabilities. Subsequently, leverage declined to 1.74 in 2021 and continued to taper to 1.35 and 1.33 in 2022 and 2023, respectively. This reduction suggests a deliberate effort to lower financial risk or deleverage the balance sheet following the 2020 peak.

Return on Equity (ROE)

ROE mirrored the volatile pattern seen in ROA with considerable swings. The figure began negatively at -43.75% in 2019 and improved to -29.17% in 2020. It then experienced a sharp turnaround into positive territory, reaching 86.26% in 2021, which indicates significant shareholder value creation during that year. Following this peak, ROE dropped to 43.73% in 2022 but declined further to -34.03% in 2023. The volatility in ROE indicates varying levels of profitability relative to shareholders’ equity, influenced by shifts in net income and equity structure.

Net Profit Margin

The net profit margin shows extreme volatility over the observed period. After an unspecified value in 2019, it declined sharply to -373.77% in 2020, indicating significant losses relative to revenue. This was followed by a strong recovery to a positive 69.04% in 2021, moderate contraction to 45.36% in 2022, and another steep decline to -70.66% in 2023. The pattern reflects an unstable profitability trend with fluctuations between large losses and substantial profits.

Asset Turnover

Asset turnover improved markedly from 0.03 in 2020 to 0.72 in 2021, demonstrating a significant increase in the company’s efficiency in generating revenue from assets. This level remained relatively stable in 2022 at 0.71 but then decreased to 0.36 in 2023. Overall, the metric suggests a period of enhanced asset utilization efficiency which lessened somewhat in the latest year.

Financial Leverage

The financial leverage ratio increased sharply from 1.35 in 2019 to a peak of 2.86 in 2020, indicating increased reliance on debt or other liabilities to finance assets. Subsequently, the ratio declined consistently to 1.74 in 2021, 1.35 in 2022, and slightly to 1.33 in 2023. This trend shows a de-risking approach over time, with leverage moving back toward the initial, more conservative levels.

Return on Equity (ROE)

ROE also exhibited significant volatility. Starting at negative 43.75% in 2019, it improved to -29.17% in 2020 but remained negative, reflecting ongoing profitability challenges. In 2021, ROE surged dramatically to 86.26%, pointing to strong returns for shareholders. However, this positive momentum diminished to 43.73% in 2022 and reversed sharply to -34.03% in 2023. The fluctuations indicate inconsistent ability to generate shareholder value across the years.

Tax Burden

The tax burden ratio is available for the years ending 2021 and 2022, showing a declining trend from 0.92 to 0.87. This suggests a reduction in the proportion of pre-tax income paid as taxes during this period.

Interest Burden

Interest burden remains constant at 1 for the years 2021 and 2022, indicating that interest expenses had no impact on earnings before taxes in these years.

EBIT Margin

The EBIT margin exhibits significant volatility over the analyzed period. It was deeply negative in 2020 (-367.55%), markedly improved to a positive 75.26% in 2021, decreased slightly but remained positive at 52.1% in 2022, then turned negative again with -58.52% in 2023. This pattern suggests fluctuating operating profitability with a sharp recovery in 2021 followed by deterioration in the latest year.

Asset Turnover

Asset turnover increased substantially from 0.03 in 2020 to 0.72 in 2021, remaining nearly stable at 0.71 in 2022 before declining to 0.36 in 2023. This indicates an improvement in the efficiency of asset utilization during 2021-2022, with a reduction in efficiency in the most recent period.

Financial Leverage

Financial leverage peaked at 2.86 in 2020, decreased to 1.74 in 2021, and then declined further to 1.35 in 2022 and 1.33 in 2023. This downward trend suggests a gradual reduction in the relative amount of debt financing over time.

Return on Equity (ROE)

ROE showed significant fluctuations, being negative in 2019 (-43.75%) and 2020 (-29.17%), sharply increasing to a strong positive peak of 86.26% in 2021, then decreasing to 43.73% in 2022 before turning negative again (-34.03%) in 2023. This reflects considerable volatility in shareholder returns, aligned with the trends in profitability and operational efficiency.

The financial ratios demonstrate significant fluctuations over the five-year period under consideration.

Net Profit Margin

This metric shows a marked volatility, beginning with a severe negative margin in 2020 at -373.77%. Subsequently, a substantial recovery is observed in 2021 with a positive margin of 69.04%, which decreases slightly to 45.36% in 2022. However, the margin deteriorates considerably in 2023 to -70.66%, indicating a return to negative profitability.

Asset Turnover

Asset efficiency shows remarkable improvement from near zero in 2020 (0.03) to strong utilization levels around 0.71-0.72 in 2021 and 2022. In 2023, the ratio diminishes to 0.36, implying a reduction in the efficiency with which assets are generating revenue.

Return on Assets (ROA)

ROA reflects a trend similar to the profit margin. Initially, there is substantial negative return (-32.34%) recorded in 2019, followed by an improvement though still negative in 2020 (-10.18%). A pronounced increase occurs in 2021 (49.46%), sustaining at a positive level in 2022 (32.34%), before sharply declining to -25.58% in 2023, signaling decreased asset profitability.

Overall, the data reveal a period marked by initial financial distress followed by a strong recovery phase in both profitability and asset efficiency during 2021 and 2022. However, the subsequent decline in 2023 across all key indicators suggests renewed challenges affecting profit margins, asset utilization, and returns.

Tax Burden

The available data for tax burden shows a slight decrease from 0.92 in 2021 to 0.87 in 2022, indicating a minor reduction in the proportion of pre-tax profits retained after tax obligations. The data for other years is missing, limiting trend analysis across the full period.

Interest Burden

The interest burden remains stable at a ratio of 1 for the years 2021 and 2022. This consistency suggests no interest expense impact on earnings before taxes during these years. Data for other periods is unavailable.

EBIT Margin

The EBIT margin demonstrates significant volatility. It was deeply negative at -367.55% in 2020, suggesting substantial operating losses. This was followed by a strong recovery to positive margins of 75.26% in 2021 and 52.1% in 2022, indicating profitable operations. However, in 2023, the margin sharply declined to -58.52%, returning to operating losses. This indicates an unstable earnings environment with considerable fluctuations in operating profitability.

Asset Turnover

Asset turnover increased substantially from 0.03 in 2020 to 0.72 in 2021, showing improvement in the efficiency of asset use in generating revenue. This efficiency was maintained in 2022 at 0.71 but decreased to 0.36 in 2023, reflecting a reduction in asset utilization effectiveness compared to prior years, though still higher than 2020.

Return on Assets (ROA)

ROA depicts high variability, beginning with a deeply negative return of -32.34% in 2019, improving to -10.18% in 2020. In 2021, there was a material positive turnaround to 49.46%, followed by a moderate decline to 32.34% in 2022. However, the return sharply reversed to -25.58% in 2023, underscoring cyclical profitability and potential challenges in asset earnings capacity.

The financial data reveals significant fluctuations in profitability margins and tax burden ratios over the analyzed periods.

Tax Burden

The tax burden ratio is available for the two most recent years, showing a decrease from 0.92 in 2021 to 0.87 in 2022. This suggests a slight improvement in tax efficiency or a reduction in the proportion of income paid as tax during that period.

Interest Burden

The interest burden ratio remains constant at 1 for both 2021 and 2022, indicating that interest expenses did not affect earnings before taxes in those years, or were negligible.

EBIT Margin

The EBIT margin shows extreme volatility. Starting from a large negative figure of -367.55% in 2020, it sharply rises to a positive 75.26% in 2021, then declines to 52.1% in 2022, followed by a drop back into negative territory at -58.52% in 2023. This pattern indicates significant swings in operational profitability, with strong recovery in 2021 and 2022 followed by a marked deterioration in 2023.

Net Profit Margin

The net profit margin exhibits a similar trend to EBIT margin. It moves from -373.77% in 2020, to a positive 69.04% in 2021, decreases to 45.36% in 2022, and then falls precipitously to -70.66% in 2023. This trajectory indicates that net profitability closely mirrors operational income but with amplified negative impacts in the most recent year, suggesting increased non-operating expenses or losses after 2022.

Overall, the data depicts a company facing considerable profitability challenges with dramatic shifts in margins. The period following 2020 shows a strong recovery in both operational and net profits, peaking in 2021, but this recovery appears unsustainable as indicated by the sharp reversals occurring in 2023. Meanwhile, stable interest burden ratios imply that financing costs did not contribute to profitability fluctuations, whereas a slight reduction in tax burden suggests partial tax advantages or structural improvements in tax-related efficiency over time.