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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
NXP Semiconductors N.V., adjustment to net income attributable to stockholders
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
The reported and adjusted net income attributable to stockholders over the five-year period demonstrates notable fluctuations.
- 2017-2018
-
The net income remained relatively stable, with only a slight decrease from 2215 million US dollars in 2017 to 2208 million US dollars in 2018 for reported net income, mirrored closely by adjusted net income figures.
- 2018-2019
-
There was a sharp decline in net income in 2019, falling substantially to 243 million US dollars for both reported and adjusted figures, indicating a significant downturn in profitability.
- 2019-2020
-
The downward trend continued into 2020, with net income decreasing further to 52 million US dollars, reflecting a very low profitability level.
- 2020-2021
-
In 2021, the net income rebounded strongly, rising to 1871 million US dollars for both reported and adjusted measures, demonstrating a substantial recovery but not yet reaching the high levels observed in 2017 and 2018.
The adjusted net income closely follows the reported figures each year, indicating that adjustments made have little impact on net income outcomes in this dataset.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
NXP Semiconductors N.V., adjusted profitability ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
The financial ratios indicate significant fluctuations over the five-year period analyzed. Both net profit margins and return on equity and assets exhibit a marked decline in 2019 and 2020, followed by a recovery in 2021.
- Net Profit Margin
- The reported net profit margin decreased sharply from 23.93% in 2017 and 23.47% in 2018 to 2.74% in 2019 and further declined to 0.6% in 2020. In 2021, it rebounded to 16.91%. The adjusted net profit margin follows the same trend, with no notable deviation from the reported figures, indicating minimal impact of adjustments.
- Return on Equity (ROE)
- The reported ROE shows a similar pattern, increasing from 16.37% in 2017 to 21.02% in 2018, then dropping substantially to 2.57% in 2019 and 0.58% in 2020. It subsequently surged to 28.66% in 2021. The adjusted ROE mirrors the reported values closely, suggesting that variations in equity returns were not significantly affected by adjustments.
- Return on Assets (ROA)
- Reported ROA also reveals comparable fluctuations, starting at 9.21% in 2017, rising to 10.26% in 2018, then plunging to 1.21% in 2019 and 0.26% in 2020 before recovering to 8.97% in 2021. The adjusted ROA values are aligned with the reported ones, demonstrating consistency regardless of adjustments.
Overall, the data reflects a period of strong financial performance in 2017 and 2018, followed by a pronounced downturn during 2019 and 2020, likely attributable to adverse business or market conditions. The substantial recovery in 2021, evident across net profit margin, ROE, and ROA, suggests a rebound in profitability and asset utilization. The close alignment between reported and adjusted figures indicates that non-recurring items or accounting adjustments had limited effect on these profitability indicators.
NXP Semiconductors N.V., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
2021 Calculations
1 Net profit margin = 100 × Net income attributable to stockholders ÷ Revenue
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net income attributable to stockholders ÷ Revenue
= 100 × ÷ =
- Net Income Attributable to Stockholders
- The reported net income attributable to stockholders remained relatively stable from 2017 to 2018, with values of $2,215 million and $2,208 million respectively. However, there was a significant decline in 2019 and 2020, dropping sharply to $243 million and $52 million. In 2021, the net income rebounded considerably to $1,871 million, though it did not recover to the levels observed in 2017 and 2018. The adjusted net income figures follow the same trend pattern, indicating consistency between reported and investment-adjusted data.
- Net Profit Margin
- The reported net profit margin exhibited a similar trend to net income. It was high and quite stable in 2017 and 2018, standing at 23.93% and 23.47% respectively. In 2019, the margin plummeted dramatically to 2.74%, followed by an even steeper decline to 0.6% in 2020. In 2021, there was a recovery to 16.91%, which, while substantial, remained below the pre-2019 levels. The adjusted net profit margin matches the reported data exactly, reflecting no divergence between the two measures in profitability trends.
- Overall Analysis
- The financial performance shows a notable downturn beginning in 2019, peaking in 2020 with very low net income and profit margins, possibly indicating significant challenges or extraordinary circumstances during this period. The recovery observed in 2021 is strong and suggests improved operational or market conditions; however, performance has not yet fully returned to the earlier years' peaks. The alignment between reported and adjusted figures throughout suggests reliability and stability in the adjustment methodology over the years analyzed.
Adjusted Return on Equity (ROE)
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
2021 Calculations
1 ROE = 100 × Net income attributable to stockholders ÷ Stockholders’ equity
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net income attributable to stockholders ÷ Stockholders’ equity
= 100 × ÷ =
The data reveals significant variability in the financial performance over the five-year period. Net income attributable to stockholders experienced a steep decline from 2017 through 2020, with a particularly sharp fall in 2019 and 2020, before recovering substantially in 2021.
Specifically, reported net income remained relatively stable between 2017 and 2018 but decreased drastically in 2019, dropping to just 243 million US dollars from over 2200 million in previous years. The downward trend continued into 2020, reaching a low of 52 million US dollars. This trend was mirrored almost identically by the adjusted net income figures, indicating that adjustments had minimal impact on the underlying earnings patterns during these years. Notably, in 2021 the net income rebounded sharply to 1871 million US dollars, signaling a strong recovery from the preceding years' declines.
Return on equity (ROE) exhibited a pattern consistent with net income trends. Reported ROE was relatively high in 2017 and 2018 at 16.37% and 21.02%, respectively, before plunging to very low levels of 2.57% in 2019 and 0.58% in 2020. Adjusted ROE followed the same trajectory, confirming the limited difference between reported and adjusted figures in this period. A remarkable increase occurred in 2021, with ROE climbing to 28.66%, reflecting improved profitability and potentially greater efficiency in equity utilization.
Overall, the financial data indicates a period of significant difficulty during 2019 and 2020, with sharp declines in both profitability and returns to equity holders. The strong recovery in 2021 suggests effective corrective actions or favorable conditions that substantially enhanced financial performance and shareholder value.
- Net Income Trend
- Stable in 2017-2018, sharp decreases in 2019 and 2020, strong recovery in 2021.
- Adjusted vs Reported Income
- Almost identical figures across all years, indicating minimal impact from adjustments.
- Return on Equity (ROE)
- High and stable in 2017-2018, collapsed in 2019-2020, rebounded significantly in 2021.
- Financial Health Insights
- 2021 marks a turning point with notable improvement after a two-year period of low profitability and returns.
Adjusted Return on Assets (ROA)
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 20-F (reporting date: 2018-12-31), 20-F (reporting date: 2017-12-31).
2021 Calculations
1 ROA = 100 × Net income attributable to stockholders ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net income attributable to stockholders ÷ Total assets
= 100 × ÷ =
The financial data demonstrates notable fluctuations in the net income attributable to stockholders over the analyzed five-year period. After maintaining relatively stable levels around 2,200 million US dollars in 2017 and 2018, there is a marked decline in 2019 and 2020, with reported net income dropping significantly to 243 million US dollars and further down to 52 million US dollars respectively. A strong recovery is observed in 2021, with net income rising sharply to 1,871 million US dollars.
The adjusted net income figures closely mirror the reported values, indicating limited differences between reported and investment-adjusted profitability metrics during this timeframe.
The return on assets (ROA) follows a similar pattern, correlating with the income trends. The reported ROA remains robust in 2017 and 2018 at approximately 9.2% and 10.3%, but experiences a steep downturn in 2019 and 2020 to 1.21% and 0.26% respectively. In 2021, ROA recovers substantially to 8.97%. The adjusted ROA values are effectively identical to the reported ROA percentages, reinforcing consistency between reported and adjusted operational performance assessments.
- Trend Summary
- Strong and stable profitability in 2017 and 2018, followed by a sharp decline in both net income and ROA during 2019 and 2020, then a significant rebound in 2021.
- Profitability Volatility
- The substantial income drop and low asset returns in 2019-2020 suggest operational challenges or external factors negatively impacting earnings during those years.
- Recovery Dynamics
- The considerable improvement in net income and ROA in 2021 indicates a successful return to profitability and more effective asset utilization after the downturn.
- Comparison of Reported vs. Adjusted Data
- Minimal differences between reported and adjusted figures imply that adjustments for investments had negligible effects on the reported profitability metrics.