NXP Semiconductors N.V. (NASDAQ:NXPI)

Total Asset Turnover

The total asset turnover ratios exhibit a generally increasing trend over the five-year period. Both reported and adjusted figures show a rise from approximately 0.38-0.39 in 2017 to around 0.53-0.54 in 2021. This indicates improved efficiency in asset utilization to generate revenue, with a notable increase observed in the final year.

Current Ratio

The current ratio experienced a decline from the high of 2.22-2.29 in 2017 to a low point around 1.54-1.57 in 2018, implying a reduction in short-term liquidity. Subsequently, it recovered and stabilized between approximately 2.13 and 2.21 during the years 2019 to 2021, suggesting restored and maintained liquidity levels.

Debt to Equity Ratio

There is a clear upward trend in the debt to equity ratio, increasing steadily from about 0.47-0.49 in 2017 to a significant 1.62-1.68 in 2021. This points to a growing reliance on debt financing over equity, which may reflect increased leverage and financial risk.

Debt to Capital Ratio

This ratio follows a similar upward trajectory to debt to equity, rising from roughly 0.32-0.33 in 2017 to approximately 0.62-0.63 in 2021. The increasing proportion of debt relative to total capital confirms the escalation in leverage during this period.

Financial Leverage

Financial leverage also increased significantly, moving from around 1.68-1.78 in 2017 to about 3.18-3.20 in 2021. The rise in this metric indicates the company is using more debt relative to equity to finance assets, leading to higher financial risk and potential for increased returns.

Net Profit Margin

The net profit margin demonstrates considerable volatility. Starting high at 16.8%-23.9% in 2017-2018, it dropped sharply to near zero or negative levels in 2019 and 2020, with adjusted net profit margin even showing a slight loss in 2020. The margin rebounded strongly in 2021 to approximately 16%, indicating a recovery in profitability.

Return on Equity (ROE)

ROE shows a pattern similar to the net profit margin, with high returns in 2017 and 2018, a substantial decline to near zero or negative values in 2019 and 2020, and a strong recovery in 2021, achieving levels above 27% adjusted and 28% reported. This suggests improved effectiveness in generating shareholder returns after a period of weakened performance.

Return on Assets (ROA)

The ROA metrics align with trends in profitability and efficiency. Both adjusted and reported ROA decline considerably from over 6.5%-9.2% in 2017-2018 to near zero or negative returns in 2019 and 2020, then rebound to around 8.7%-9.0% in 2021. This reflects a substantial impact on asset profitability during the middle years and a recovery in the latest period.

The revenue figures demonstrate a fluctuating trend over the five-year period. Starting at $9,256 million in 2017, revenue increased slightly in 2018 to $9,407 million, followed by a decline in the subsequent two years to $8,877 million in 2019 and $8,612 million in 2020. However, a significant recovery was observed in 2021, with revenue rising sharply to $11,063 million, marking the highest value in the period.

Total assets exhibited a generally declining trend from 2017 to 2020. Specifically, total assets decreased from $24,049 million in 2017 to $19,847 million in 2020. There was a minor rebound in 2021, with total assets increasing slightly to $20,864 million but remaining below the 2017 figure.

Reported total asset turnover—a measure of how efficiently assets generate revenue—improved steadily over the five-year span. The ratio rose from 0.38 in 2017 to 0.53 in 2021. This steady increase indicates enhanced efficiency in asset utilization, particularly notable in 2021 when revenue growth outpaced asset growth.

Adjusted total assets displayed a similar pattern to total assets, decreasing from $23,846 million in 2017 to $19,372 million in 2020, then increasing to $20,425 million in 2021. Adjusted total asset turnover mirrored its reported counterpart, increasing from 0.39 in 2017 to 0.54 in 2021, reinforcing the observation of improved asset efficiency over time.

Overall, the data reveals that despite the decline in total and adjusted assets over the middle years, the company improved its efficiency in asset usage, culminating in higher revenue and turnover ratios in the final year. The 2021 results are characterized by a notable revenue rebound and peak asset turnover ratios, suggesting enhanced operational effectiveness and potentially stronger market conditions or internal performance improvements during that year.

The analysis of the annual financial data reveals several noteworthy trends in the liquidity position over the five-year period ending December 31, 2021.

Current Assets

There is a general decline in current assets from 2017 to 2019, dropping from 6,044 million US dollars to 3,267 million US dollars. However, this trend reverses from 2020 onwards, with current assets increasing to 4,324 million US dollars in 2020 and further to 5,228 million US dollars in 2021, indicating a recovery or strategic buildup of liquid resources.

Current Liabilities

Current liabilities show a different pattern, initially rising from 2,718 million US dollars in 2017 to 3,385 million US dollars in 2018, then sharply decreasing to 1,791 million US dollars in 2019. From 2020 to 2021, current liabilities gradually increase again, reaching 2,452 million US dollars by the end of 2021. This fluctuation suggests adjustments in short-term obligations potentially due to changes in operational or financing activities.

Reported Current Ratio

The reported current ratio moves in alignment with the trends in current assets and liabilities. It declines significantly from 2.22 in 2017 to 1.54 in 2018, indicating a weakening short-term liquidity position. Thereafter, it improves consistently over the next three years to 2.13 in 2021, reflecting stronger liquidity and the ability to cover current liabilities more comfortably with current assets.

Adjusted Current Assets and Liabilities

The adjusted figures closely mirror the reported totals, with minor differences. Adjusted current assets and liabilities follow the same pattern of decline and subsequent recovery. This consistency suggests that adjustments do not materially change the overall liquidity assessment.

Adjusted Current Ratio

The adjusted current ratio reinforces the insights from the reported current ratio, showing a drop from 2.29 in 2017 to 1.57 in 2018, then recovering steadily to 2.15 by 2021. This confirms the strengthening liquidity position post-2018.

Overall, the data indicate a period of liquidity contraction from 2017 to 2018, possibly due to an increase in current liabilities and a reduction in current assets. From 2019 onwards, the company appears to have improved its short-term financial health through either growth in current assets, reduction in liabilities, or both. The current ratio remaining above 2.0 in the last two years suggests a comfortable liquidity buffer was maintained as of 2021.

The financial data exhibits significant shifts in the debt and equity structure over the five-year period ending in 2021. There is a clear upward trend in the levels of both total and adjusted debt. Specifically, total debt increased from US$6,565 million in 2017 to US$10,572 million in 2021. Similarly, adjusted total debt rose from US$6,683 million to US$10,809 million during the same period, indicating consistent growth in debt obligations regardless of adjustments.

Conversely, stockholders’ equity, both reported and adjusted, declined noticeably over the period. Reported stockholders’ equity decreased from US$13,527 million at the end of 2017 to US$6,528 million by the end of 2021. Adjusted total equity followed a similar downward pattern, falling from US$14,185 million in 2017 to US$6,425 million in 2021. This reduction in equity could reflect factors such as cumulative losses, dividend payments, share buybacks, or other equity-reducing activities.

These divergent trends in debt and equity have resulted in a marked increase in the leverage ratios. Reported debt-to-equity ratio rose from 0.49 in 2017 to 1.62 in 2021, while the adjusted debt-to-equity ratio followed a similar trajectory, increasing from 0.47 to 1.68. The rising leverage indicates a substantial shift towards greater reliance on debt financing relative to equity, potentially increasing financial risk.

In summary, the company has experienced a considerable escalation in debt levels alongside a contraction in equity base, culminating in a steep increase in leverage ratios. This pattern suggests heightened financial leverage and possibly greater vulnerability to market or operational stresses. Careful monitoring of debt servicing capacity and equity management is advisable going forward.

Over the analyzed five-year period, there is a clear upward trend in the company's total debt levels. Starting at US$ 6,565 million at the end of 2017, total debt increased steadily each year, reaching US$ 10,572 million by the end of 2021. This represents a significant rise in debt, particularly notable between 2020 and 2021.

In contrast, total capital displayed a declining trend initially. It decreased from US$ 20,092 million in 2017 to US$ 16,553 million in 2020. However, in 2021, there was a slight recovery with total capital increasing to US$ 17,100 million. The overall pattern indicates a contraction in total capital over the earlier part of the period, followed by a modest increase in the final year.

As a result of these movements, the reported debt to capital ratio shows a marked increase over the period. It rose from 0.33 in 2017 to 0.62 in 2021, reflecting a higher proportion of debt relative to capital. This trend is consistent and becomes more pronounced in the last two years, signaling a shift towards greater leverage.

When considering the adjusted figures, trends remain similar. Adjusted total debt increases from US$ 6,683 million in 2017 to US$ 10,809 million in 2021. Adjusted total capital decreases from US$ 20,868 million in 2017 to US$ 16,681 million in 2020, with a slight rebound to US$ 17,234 million by 2021.

The adjusted debt to capital ratio correspondingly rises from 0.32 in 2017 to 0.63 in 2021, reinforcing the observation of increasing financial leverage. This rise in adjusted ratios slightly exceeds the increase seen in reported ratios, indicating that adjustments may capture additional debt factors that enhance the portrayal of indebtedness.

In summary, the data reveals a consistent increase in indebtedness relative to capital over the five-year period, with a significant acceleration in leverage ratios particularly evident in the latest year. The modest recovery in capital levels in the final year does not offset the overall trend of rising debt burdens, suggesting that the company has been increasingly reliant on debt financing over time.

Total Assets

Total assets show a decreasing trend from 24,049 million US dollars at the end of 2017 to 19,847 million US dollars at the end of 2020, followed by a slight increase to 20,864 million US dollars in 2021. This indicates a reduction in asset base over the first four years, with a modest recovery in the last year reported.

Stockholders’ Equity

Stockholders’ equity consistently declined throughout the period under review, starting at 13,527 million US dollars in 2017 and falling steadily each year to reach 6,528 million US dollars by the end of 2021. This represents a significant erosion of equity capital over the five-year span.

Reported Financial Leverage

Reported financial leverage exhibited an upward trend, increasing from 1.78 in 2017 to 3.20 in 2021. The rise in leverage indicates an increase in the proportion of debt relative to equity, suggesting greater reliance on external financing over the period.

Adjusted Total Assets

Adjusted total assets follow a similar pattern to total assets, decreasing from 23,846 million US dollars in 2017 to 19,372 million US dollars in 2020, then rising slightly to 20,425 million US dollars in 2021. The adjusted figures remain consistently slightly lower than the reported total assets, reflecting adjustments made to asset valuation.

Adjusted Total Equity

Adjusted total equity also declines over time, from 14,185 million US dollars in 2017 to 6,425 million US dollars in 2021. The downward trend is consistent with that seen in reported stockholders’ equity, confirming a substantial decrease in equity after adjustments.

Adjusted Financial Leverage

Adjusted financial leverage increased from 1.68 in 2017 to 3.18 in 2021, paralleling the trend observed in reported leverage. This increase indicates growing financial risk, as the company’s adjusted debt level rises in relation to adjusted equity.

Summary Insights

Overall, the data reflects a diminishing asset base and a pronounced decline in equity over five years, leading to a significant rise in both reported and adjusted financial leverage ratios. The increasing leverage suggests the company is becoming more leveraged, potentially heightening financial risk. The slight uptick in total assets in 2021 may indicate a stabilization or minor recovery in asset holdings; however, equity levels continue to decrease sharply, exacerbating leverage concerns.

The financial data over the five-year period reveals several notable trends in the company’s performance metrics, particularly with respect to profitability and revenue fluctuations.

Net Income Attributable to Stockholders

The net income attributed to stockholders showed relatively stable values around 2,200 million US dollars in 2017 and 2018, followed by a sharp decline in 2019 to 243 million and an even more pronounced drop in 2020 to 52 million. A significant recovery occurred in 2021, with net income increasing substantially to 1,871 million US dollars, although still below the 2017-2018 levels.

Revenue

Revenue exhibited modest fluctuations, slightly increasing from approximately 9,256 million US dollars in 2017 to 9,407 million in 2018, before a decline each year in 2019 and 2020 down to 8,612 million. However, 2021 experienced a notable surge to 11,063 million US dollars, indicating a strong rebound and growth beyond earlier years.

Reported Net Profit Margin

The reported net profit margin closely mirrors the trend observed in net income. Margins were strong at around 24% in 2017 and 2018 but plummeted sharply in 2019 to below 3% and reached a low of 0.6% in 2020. By 2021, the margin recovered significantly to nearly 17%, suggesting improved profitability accompanying the rise in revenue and net income.

Adjusted Net Income

Adjusted net income shows a somewhat similar pattern but with greater volatility. After a rise from 1,557 million in 2017 to 1,969 million in 2018, there was a drastic fall to 15 million in 2019 and a negative adjusted income of -185 million in 2020. The figure rebounded sharply in 2021 to 1,780 million, indicative of operational improvements or one-time adjustments benefiting the period.

Adjusted Net Profit Margin

Adjusted net profit margin trends align with adjusted net income results, starting at about 17% in 2017 and increasing to 21% in 2018. Thereafter, margins plummeted to near zero (0.17%) in 2019 and turned negative (-2.15%) in 2020. The return to a positive margin of 16.09% in 2021 again signals a significant recovery in operational profitability after the downturn.

Overall, the data highlights a period of relative stability and profitability until 2018, followed by a sharp decline in profitability and net income over 2019 and 2020, despite relatively stable revenue levels. The rebound seen in 2021 across all key financial metrics suggests a recovery phase, with both revenue and profit margins improving considerably. This pattern indicates potential challenges during 2019-2020 that may have affected earnings quality, followed by a successful turnaround or market conditions favoring growth in the most recent period.

The financial data reveals several notable trends over the period from the end of 2017 through the end of 2021.

Net Income Attributable to Stockholders

The net income showed a significant decline from 2,215 million US$ in 2017 to a low of 52 million US$ in 2020. However, there was a sharp recovery in 2021, with net income rising substantially to 1,871 million US$.

Stockholders' Equity

Stockholders' equity consistently decreased over the entire period, starting at 13,527 million US$ in 2017 and declining to 6,528 million US$ by the end of 2021. The decline suggests a continuous reduction in the net assets attributable to shareholders.

Reported Return on Equity (ROE)

The reported ROE exhibited volatility and a downward trend until 2020. It started at 16.37% in 2017, rose to 21.02% in 2018, and then dropped drastically to 0.58% in 2020. A remarkable rebound was observed in 2021, with ROE surging to 28.66%, indicating high profitability relative to shareholders’ equity for that year.

Adjusted Net Income

The adjusted net income followed a similar pattern to the reported net income but with more pronounced swings. From 1,557 million US$ in 2017, it increased to 1,969 million US$ in 2018 before plummeting to 15 million US$ in 2019 and turning negative to -185 million US$ in 2020. A positive recovery occurred in 2021 with 1,780 million US$.

Adjusted Total Equity

Adjusted total equity steadily declined from 14,185 million US$ in 2017 to 6,425 million US$ in 2021. This trend aligns with the reduction in reported stockholders' equity, reflecting a consistent contraction in adjusted shareholder value.

Adjusted Return on Equity (ROE)

Adjusted ROE progressively declined from 10.98% in 2017 to a negative figure of -2.09% in 2020, reflecting losses or poor profitability in adjusted terms during that year. In 2021, it rebounded strongly to 27.7%, closely paralleling the behavior of the reported ROE.

Overall, the data indicates that the entity experienced a period of considerable financial stress around 2019 and 2020, as evidenced by dramatic drops in income and returns, alongside diminishing equity. The recovery in 2021 was marked and substantial, with significant improvements in profitability and positive returns on equity despite the continuing downward trend in equity base. This suggests a return to operational profitability amidst a reduced capital base.

Net income attributable to stockholders

The net income remained relatively stable from 2017 to 2018, showing a slight decrease from 2215 million to 2208 million. However, in 2019 and 2020, a significant decline is observed, dropping sharply to 243 million and then to 52 million. A substantial recovery occurs in 2021, with net income rising to 1871 million, though still below 2017 and 2018 levels.

Total assets

Total assets show a consistent downward trend from 24049 million in 2017 to a trough of 19847 million in 2020. In 2021, assets slightly rebound to 20864 million, but the overall trend across the period is a reduction in asset base, reflecting possible divestitures, asset sales, or depreciation outpacing investments.

Reported Return on Assets (ROA)

The reported ROA declines from a healthy 9.21% in 2017 to a low of 0.26% in 2020, indicating a sharp decrease in profitability relative to asset base during this period. In 2021, ROA recovers to 8.97%, mirroring the improvement in net income, yet still slightly below the earlier high points of 2017 and 2018.

Adjusted net income

Adjusted net income follows a pattern similar to the reported net income but with more pronounced volatility. Starting at 1557 million in 2017, it increases to 1969 million in 2018, then plunges dramatically to near zero (15 million) in 2019, and dips further into negative territory (-185 million) in 2020. The figure rebounds sharply to 1780 million in 2021, recovering nearly to the 2017 and 2018 levels.

Adjusted total assets

Adjusted total assets decrease steadily from 23846 million in 2017 to 19372 million in 2020, reflecting a pronounced trend of asset reduction comparable to the unadjusted total assets. A modest recovery is observed in 2021, with assets rising to 20425 million.

Adjusted Return on Assets (ROA)

The adjusted ROA mirrors the trend in adjusted net income and adjusted assets, starting at 6.53% in 2017, increasing to 9.21% in 2018, collapsing to almost zero (0.08%) in 2019, and turning negative (-0.95%) in 2020. It then recovers significantly to 8.71% in 2021, indicating an improvement in profitability adjustments and asset utilization efficiency.