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NXP Semiconductors N.V. (NASDAQ:NXPI)

This company has been moved to the archive! The financial data has not been updated since July 26, 2022.

Common-Size Income Statement

NXP Semiconductors N.V., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Revenue 100.00 100.00 100.00 100.00 100.00
Cost of revenue -45.16 -50.82 -47.98 -48.43 -50.10
Gross profit 54.84% 49.18% 52.02% 51.57% 49.90%
Research and development -17.50 -20.03 -18.51 -18.07 -16.79
Selling, general and administrative -8.64 -10.21 -10.41 -10.56 -11.78
Amortization of acquisition-related intangible assets -5.35 -15.41 -16.17 -15.40 -15.64
Operating expenses -31.49% -45.65% -45.08% -44.03% -44.21%
Result from manufacturing service arrangements (MSA) and transitional service arrangements (TSA) -0.02 0.00 0.00 0.00 0.00
Other, net 0.02 1.32 0.28 21.27 17.02
Other income (expense) 0.00% 1.32% 0.28% 21.27% 17.02%
Operating income 23.35% 4.85% 7.22% 28.81% 22.71%
Interest income 0.04 0.15 0.64 0.51 0.29
Interest expense -3.34 -4.20 -4.17 -2.90 -3.35
Interest expense, net -3.30% -4.05% -3.53% -2.39% -3.06%
Net loss on extinguishment of debt -0.20 -0.70 -0.12 -0.28 -0.44
Foreign exchange rate results 0.05 -0.19 -0.17 -0.15 -0.32
Miscellaneous financing income (expense) and other, net -0.19 0.09 -0.12 -0.74 -0.13
Other financial income (expense) -0.34% -0.79% -0.42% -1.17% -0.90%
Financial income (expense) -3.64% -4.84% -3.94% -3.56% -3.95%
Income before income taxes 19.71% 0.01% 3.28% 25.25% 18.76%
(Provision) benefit for income taxes -2.46 0.96 -0.23 -1.87 5.22
Results relating to equity-accounted investees -0.02 -0.05 0.01 0.63 0.57
Net income 17.23% 0.93% 3.06% 24.00% 24.55%
Net income attributable to non-controlling interests -0.32 -0.33 -0.33 -0.53 -0.62
Net income attributable to stockholders 16.91% 0.60% 2.74% 23.47% 23.93%

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 common-size income statement analysis reveals a period of significant volatility in profitability and operational costs, characterized by a sharp contraction in margins between 2019 and 2020, followed by a substantial recovery in 2021.

Gross Profitability and Cost Structure
Gross profit margins remained relatively resilient, fluctuating between 49.18% and 54.84%. A peak in gross margin was observed in 2021 at 54.84%, driven by a reduction in the cost of revenue to 45.16%, its lowest point in the five-year period. This indicates improved production efficiency or pricing power toward the end of the analyzed timeframe.
Operational Expenditure Trends
Operating expenses exhibited a notable decline in 2021, dropping to 31.49% of revenue from a peak of 45.65% in 2020. This reduction was primarily driven by a significant decrease in the amortization of acquisition-related intangible assets, which fell to 5.35% in 2021 compared to an average of approximately 15.6% from 2017 to 2020. Meanwhile, selling, general, and administrative expenses showed a consistent downward trend, decreasing from 11.78% in 2017 to 8.64% in 2021, suggesting an improvement in operational leverage.
Research and development spending remained a significant cost driver, peaking at 20.03% of revenue in 2020 before moderating to 17.50% in 2021.
Operating Income Volatility
Operating income as a percentage of revenue experienced extreme variance. After reaching 28.81% in 2018, it plummeted to 7.22% in 2019 and further to 4.85% in 2020. This decline is closely linked to the disappearance of significant "Other, net" income, which provided 17.02% and 21.27% boosts to the top line in 2017 and 2018, respectively, but became negligible by 2019. Operating income recovered to 23.35% in 2021, supported by the reduction in amortization and improved gross margins.
Financial Expenses and Net Earnings
Financial income and expenses consistently exerted downward pressure on the bottom line, with net financial expenses ranging from 3.56% to 4.84% of revenue. Interest expenses remained a steady burden, averaging roughly 3% to 4% of revenue throughout the period.
Net income attributable to stockholders mirrored the volatility of operating income, falling from 23.93% in 2017 to a low of 0.60% in 2020. A strong recovery occurred in 2021, with net income attributable to stockholders rising back to 16.91%, reflecting the combined impact of lower amortization costs and expanded gross margins.

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