Palo Alto Networks Inc. (NASDAQ:PANW)

Current Income Tax Expense

The current income tax expense has exhibited a consistent upward trajectory over the six-year period. Starting at $25,300 thousand in 2019, it increased gradually each year, reaching $44,450 thousand by 2024. The growth accelerated notably from 2022 onwards, with a substantial jump between 2023 and 2024, indicating a significant rise in the tax liabilities payable in the short term.

Deferred Income Tax Expense

The deferred income tax expenses display a markedly different trend from the current tax expenses. Initially, the deferred taxes were negative, reflecting deferred tax benefits, beginning at -$18,000 thousand in 2019. The negative values reduced in magnitude over 2020 and 2021 but moved closer to zero, signaling a diminishing deferred tax benefit. A notable shift occurs in 2023 with a positive deferred tax expense of $12,500 thousand, which then drastically reverses to a highly negative figure of -$2,033,800 thousand in 2024. This sharp fluctuation indicates significant deferred tax adjustments or re-measurements occurring in the latest period.

Provision for Income Taxes (Total Tax Expense)

The overall provision for income taxes reflects the combined effect of current and deferred taxes. From 2019 through 2023, the total tax expense generally increased, moving from $7,300 thousand in 2019 to $126,600 thousand in 2023, exhibiting a trend consistent with rising profitability or tax rates. However, in 2024, the provision dramatically reverses to a large tax benefit of -$1,589,300 thousand, driven primarily by the substantial deferred tax benefit. This exceptional change suggests an extraordinary tax event, such as recognition of a substantial deferred tax asset or resolution of prior tax uncertainties.

Summary of Trends and Insights

The data indicates steadily increasing current tax expenses, reflective of growing taxable income or increasing tax rates. Deferred tax expenses show volatility, initially representing benefits before a pronounced reversal to a substantial negative deferred tax figure in 2024. The total tax provision corroborates these findings, displaying growth until 2023 and an extraordinary benefit in 2024. The sharp movements in deferred taxes and total provision in the final year warrant further investigation into the underlying causes, such as tax law changes, asset revaluations, or changes in temporary differences impacting deferred tax calculations.

The analysis of the annual tax-related financial data indicates several notable trends and fluctuations over the six-year period ending July 31, 2024.

Federal Statutory Income Tax Rate

This rate remained constant at 21% throughout the entire period, indicating no changes in the federal tax legislation affecting the company.

State Taxes, Net of Federal Tax Benefit

State taxes showed a decreasing trend from 7.9% in 2019 to a low of 1.3% in 2021, followed by a gradual increase to 3.1% by 2024. This suggests variability in state tax liabilities or benefits over the years, with recent years showing an uptick.

Non-U.S. Operations

The percentage related to non-U.S. operations was highly volatile. It started at 89.3% in 2019, peaked dramatically at 667.5% in 2020, then fell into negative territory in 2021 (-3.1%) and 2022 (-16.5%). The metric recovered positively to around 9.5–9.7% in the last two years. These fluctuations imply significant changes in the profitability or tax treatment of foreign operations across the period.

Change in Valuation Allowance

This metric exhibited wide swings, with large negative values such as -196.9% in 2019, -714.1% in 2020, and -158.7% in 2022, indicating considerable write-downs or allowances for deferred tax assets during those years. Contrastingly, 2023 showed a positive value (15.5%) signaling some recovery or reversal, followed by a sharp negative reversal again in 2024 (-341.9%). This pattern suggests significant volatility in deferred tax assets' realizability assessments.

U.S. Effect of Foreign Deferred Tax Assets

This factor appears only in 2024, with a significant positive impact of 175.8%, indicating a new or material adjustment relating to foreign deferred tax assets affecting U.S. tax calculations in that year.

Effect of U.S. Tax Law Change

A small one-time positive impact of 0.6% was observed in 2019, with no further effect in subsequent years, suggesting a minor adjustment related to past tax law changes.

Share-Based Compensation

Share-based compensation percentages fluctuated significantly. The value was high and positive in 2019 (44.9%) and 2022 (83.6%), but negative in 2020 (-5.1%), 2023 (-12.6%), and 2024 (-16.9%), with a small positive spike in 2021 (5%). This inconsistency may reflect varying accounting treatments or expense recognition related to stock-based employee compensation.

Tax Credits

Tax credits started at 35% in 2019, then declined consistently to 9.9% in 2021. An anomalous increase occurred in 2022 (41.5%), followed by negative percentages in 2023 (-15.6%) and 2024 (-13.4%), indicating either refunds, reversals, or changes in tax credit utilizations or recognition policies.

Non-Deductible Expenses

These expenses showed a decreasing negative impact from -11.5% in 2019 to -1.3% in 2021, then shifted to small positive values in 2023 (2.3%) and 2024 (1.5%), suggesting changes in expense classification or tax deductibility.

Other, Net

The "Other, net" category fluctuated around zero, with minor negative effects in 2020 (-1.5%) and 2023 (-0.7%), and slight positive values in 2021 (0.6%) and 2024 (0.5%). These minor variances indicate non-material miscellaneous factors affecting the overall tax rate.

Effective Income Tax Rate

The effective income tax rate shows significant instability, highly negative in most years: -9.8% in 2019, reaching -28.9% in 2022. A positive tax rate was recorded only in 2023 (22.4%), followed by a dramatic negative spike to -160.8% in 2024. Such volatility indicates highly fluctuating tax expenses relative to income, possibly driven by the above-discussed factors such as deferred tax asset changes, foreign operations, and tax credits.

In summary, the data reveals considerable volatility in various tax-related metrics, particularly those tied to foreign tax effects, valuation allowances, and tax credits. The effective tax rate's extreme swings underline complex and potentially non-recurring tax factors that have impacted net tax expense considerably year-over-year. Stability is observed only in the statutory federal tax rate, while other components exhibit large variations reflecting changing tax positions, operational geographies, and accounting treatments over the years examined.

The financial data over the reported periods shows a series of notable trends and fluctuations across multiple accounts.

Accruals and Reserves

There was a significant increase in accruals and reserves from 2019 to 2022, with values almost tripling from 53,300 to 141,100 thousand USD. However, this was followed by a decline in 2023 to 88,500 thousand USD before rising again in 2024 to 109,700 thousand USD.

Operating Lease Liabilities

Operating lease liabilities emerged as a reported item starting in 2022, showing increases from 86,000 in 2022 to 132,600 thousand USD by 2024, indicating growing obligations under operating leases.

Deferred Revenue

Deferred revenue demonstrated continuous and strong growth throughout all periods, expanding substantially from 212,800 thousand USD in 2019 to over 1,004,900 thousand USD in 2024. This suggests an increasing volume of customer prepayments or unearned income.

Net Operating Loss Carryforwards

This account grew sharply from 269,900 thousand USD in 2019 to 759,100 thousand USD in 2022, then dropped to 551,000 thousand USD in 2023, followed by a slight uptick to 585,200 thousand USD in 2024. The rise indicates increasing accumulated losses available to offset future taxable income, with some reduction in later years.

Tax Credits

Tax credits showed a generally steady rise from 143,300 thousand USD in 2019 to a peak of 338,900 thousand USD in 2023, before sharply declining to 175,300 thousand USD in 2024, which may reflect changes in eligible credits or utilization.

Capitalized Research Expenditures

Reported beginning in 2022, this asset category increased markedly from 354,800 to 626,600 thousand USD by 2024, indicating significant investment in research and development activities being capitalized.

Share-based Compensation

This expense showed consistent growth year over year, rising from 25,900 thousand USD in 2019 to 75,600 thousand USD in 2024, reflecting possibly increased grant activity or dilution of shares.

Fixed Assets and Intangible Assets

Fixed and intangible assets increased to a peak in 2021 at 1,789,600 thousand USD, then gradually declined to 1,631,700 thousand USD by 2024. This may be due to amortization, depreciation, or asset disposals over time.

Interest Carryforward

Interest carryforward is intermittently reported with a rise from 19,200 in 2021 to 55,800 thousand USD in 2022, then absent afterward, suggesting changes in interest expense carryforwards or reporting classification.

Gross Deferred Tax Assets

There was a strong upward trend in gross deferred tax assets, growing from 705,200 thousand USD in 2019 to 4,341,600 thousand USD in 2024, reflecting increasing temporary differences or loss carryforwards that can reduce future tax liabilities.

Valuation Allowance

The valuation allowance, which offsets deferred tax assets, increased in magnitude from -561,900 thousand USD in 2019 to a peak negative value of -3,586,700 thousand USD in 2023, before dramatically decreasing to -243,400 thousand USD in 2024. This change suggests a reassessment of the realizability of deferred tax assets with a significant release of the allowance in the latest period.

Deferred Tax Assets

Deferred tax assets rose steadily from 143,300 thousand USD in 2019 to 409,820 thousand USD in 2024, indicating growth in temporary deductible differences that reduce tax expenses.

U.S. Effect of Foreign Deferred Tax Assets

This item appears only in 2024, with a negative 1,728,500 thousand USD, indicating an adverse impact on deferred tax assets related to foreign operations for this period.

Operating Lease Right-of-Use Assets

These assets are reported starting in 2023 with a negative value, increasing in magnitude to -115,800 thousand USD in 2024, reflecting the recognition and amortization of right-of-use assets related to lease liabilities.

Deferred Contract Costs

Deferred contract costs consistently increased in negative value from -94,600 thousand USD in 2019 to -199,100 thousand USD in 2024, indicating growing unamortized contract costs or changes in capitalization and amortization practices.

Other Deferred Tax Liabilities

These liabilities increased in absolute value, fluctuating between -15,700 thousand USD in 2019 and -58,200 thousand USD in 2023, before reducing somewhat to -43,500 thousand USD in 2024, suggesting variability in timing differences subject to taxation.

Deferred Tax Liabilities

Deferred tax liabilities rose from -136,300 thousand USD in 2019 to a more substantial negative value of -2,086,900 thousand USD in 2024. This increase signals growing temporary taxable differences expected to increase future tax payments.

Net Deferred Tax Assets (Liabilities)

This measure was positive but small from 2019 through 2022, ranging around 7,000 to 11,200 thousand USD, turned negative to -5,400 thousand USD in 2023, then surged to a large positive 2,011,300 thousand USD in 2024. The substantial shift in 2024 reflects major changes in deferred tax accounting or assumptions regarding realizability and liabilities.

The financial data reveals notable fluctuations in deferred tax assets and liabilities over the periods presented.

Deferred Tax Assets

Data is unavailable for most years until the last two fiscal years. In the fiscal year ending July 31, 2023, deferred tax assets show a recorded value of 23,100 thousand US dollars, which then increases dramatically to 2,399,000 thousand US dollars in the fiscal year ending July 31, 2024. This represents a significant upward trend, indicating a substantial rise in the company's anticipated future tax benefits.

Deferred Tax Liabilities

Similarly, deferred tax liabilities are only reported in the last two fiscal years. In July 31, 2023, the liability stood at 28,100 thousand US dollars and surged to 387,700 thousand US dollars in July 31, 2024. While this is also a considerable increase, it is much smaller in scale compared to the growth seen in deferred tax assets.

Overall Observations

The data from the two most recent fiscal years indicates a sharp increase in deferred tax-related items, with deferred tax assets expanding at a notably higher rate than deferred tax liabilities. This could suggest an expectation of significant future taxable income that would allow the utilization of these deferred tax assets.

The data reveals several notable trends in the financial position and performance over the six-year period ending July 31, 2024. The analysis focuses on reported and adjusted values of total assets, total liabilities, stockholders’ equity, and net income (loss).

Total Assets

There is a consistent upward trajectory in both reported and adjusted total assets from 2019 through 2024. Reported total assets increased from approximately $6.6 billion in 2019 to nearly $20.0 billion in 2024, while the adjusted figures follow a similar pattern, rising from $6.6 billion to about $17.6 billion in the same period. This growth suggests expanding resource bases and possibly investments in business operations or acquisitions.

Total Liabilities

Reported total liabilities also show a steady increase from roughly $5.0 billion in 2019 to $14.8 billion in 2024. The adjusted liabilities track closely but are slightly lower than reported values, especially in the last two years, reflecting adjustments likely related to tax considerations. The rising liabilities indicate increased obligations or financing activities supporting asset growth.

Stockholders’ Equity

Reported stockholders’ equity demonstrates volatility over the examined period. It declines sharply from approximately $1.6 billion in 2019 to a low of around $210 million in 2022, then rebounds to an estimated $5.2 billion by 2024. Adjusted equity follows a similar trend but with slightly lower absolute values in later years, peaking at approximately $3.2 billion in 2024. This fluctuation may indicate periods of losses affecting retained earnings followed by recovery or capital injections. The rebound in equity by 2024 suggests strengthened financial stability and improved net asset value.

Net Income (Loss)

Net income, both reported and adjusted, exhibits significant variation and improvement over time. From negative results in the range of approximately -$82 million (reported) and -$100 million (adjusted) in 2019, losses deepen in subsequent years, reaching over -$500 million by 2021. However, from 2022 onward, a positive turnaround is evident, with reported net income rising sharply to approximately $2.6 billion by 2024. Adjusted net income, after mirroring the losses, also turns positive in 2023 and 2024 but at more moderate levels compared to reported figures. This demonstrates a strong recovery in profitability, potentially driven by operational improvements, cost management, or other financial strategies.

Overall, the data reflects a company undergoing substantial growth in assets and liabilities, coupled with a period of financial strain evident in equity and net income trends, followed by a pronounced recovery in recent years. The adjusted figures consistently show slightly more conservative values, indicative of cautious accounting for deferred tax effects or other adjustments. The financial trajectory suggests increased scale and improving profitability, but also periods of financial pressure prior to the latest positive results.

Net Profit Margin

The reported net profit margin exhibited a fluctuating trend, starting with a negative value of -2.82% in 2019 and worsening to -11.72% by 2021. However, it significantly improved thereafter, reaching a positive 6.38% in 2023 and surging to 32.11% in 2024. The adjusted net profit margin followed a similar pattern but with less volatility, remaining negative from 2019 to 2022, with a low of -12.01% in 2021, before turning positive in 2023 at 6.56% and slightly increasing to 6.77% in 2024. This indicates that while reported margins showed outstanding growth in the most recent year, the adjusted margins suggest a more moderate recovery.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios displayed relative stability over the years, with values fluctuating slightly between 0.38 and 0.48. The ratio increased moderately from 0.44 in 2019 to a peak of 0.48 in 2023, before experiencing a slight decline in 2024 to 0.4 reported and 0.46 adjusted. This indicates consistent asset utilization efficiency with minor variations over the period examined.

Financial Leverage

Financial leverage ratios showed considerable volatility, with reported leverage increasing significantly from 4.16 in 2019 to an extreme peak of 58.35 in 2022, then sharply declining to 3.87 by 2024. Adjusted leverage mirrored this trend, peaking even higher at 61.64 in 2022 before dropping to 5.57 in 2024. Such wide fluctuations suggest considerable changes in capital structure or borrowing strategies, with unusually high leverage during 2022 likely impacting financial risk.

Return on Equity (ROE)

Reported ROE demonstrated severe negative values from 2019 through 2022, reaching an extreme low of -127.14% in 2022. This was followed by a substantial recovery to a positive 25.15% in 2023 and a further rise to 49.86% in 2024. Adjusted ROE paralleled this trend with slightly more negative figures, bottoming at -135.87% in 2022 before rebounding to 25.78% in 2023 and moderating to 17.22% in 2024. The data suggest a period of significant losses reversing into strong profitability, though adjusted data indicates the recovery may be less robust than reported figures imply.

Return on Assets (ROA)

ROA values, both reported and adjusted, were negative from 2019 to 2021, with the worst performance occurring in 2021 (-4.87% reported, -4.99% adjusted). Reported ROA improved to a positive 3.03% in 2023 and surged notably to 12.89% in 2024. Adjusted ROA also turned positive at 3.12% in 2023 but remained relatively flat at 3.09% in 2024. This divergence suggests that while reported metrics indicate strong asset profitability gains in 2024, adjusted figures point to a more modest improvement.

Reported Net Income (Loss)

The reported net income demonstrates a volatile trend over the examined periods. Initially, the company experienced substantial losses from 2019 through 2022, with a notable peak loss in 2021 of approximately -$498.9 million. However, starting in 2023, there is a marked reversal to positive profitability, reaching $439.7 million and further increasing significantly in 2024 to about $2.58 billion, indicating a strong financial turnaround.

Adjusted Net Income (Loss)

Adjusted net income follows a similar pattern to reported figures but consistently reflects slightly greater losses during the negative periods and moderately lower profits in positive periods. Losses intensified from -$99.9 million in 2019 to a peak of -$511.3 million in 2021, then improved to a positive $452.2 million in 2023 before declining to $543.8 million in 2024. The adjusted net income thus supports the observation of a prior period of financial struggle followed by recovery, albeit with more conservative profitability estimates than the reported income.

Reported Net Profit Margin

The reported net profit margin reflects the net income trend as a percentage of revenue. From negative margins ranging between -2.82% in 2019 and -11.72% in 2021, the company showed marginal improvement in 2022 at -4.85%. A significant positive shift occurred in 2023 with a margin of 6.38%, escalating sharply to a strong 32.11% in 2024. This indicates a substantial enhancement in profitability relative to revenues in the most recent periods.

Adjusted Net Profit Margin

The adjusted net profit margin closely mirrors the reported margin but maintains slightly more conservative profitability ratios. The margin declines from -3.45% in 2019 to a low of -12.01% in 2021, followed by improvement to -4.91% in 2022. The margin crosses into positive territory in 2023 at 6.56% and rises slightly to 6.77% in 2024. These figures suggest the company’s profitability, when normalized for income tax effects and other adjustments, is positive but more moderate compared to reported results.

Total Assets

The reported total assets show a consistent upward trend over the analyzed periods, increasing from approximately $6.59 billion in mid-2019 to nearly $20.0 billion by mid-2024. This represents significant asset growth, more than tripling within five years. Adjusted total assets follow a similar pattern, rising steadily from about $6.59 billion in 2019 to roughly $17.59 billion in 2024, though the adjusted values are lower compared to the reported figures from 2023 onwards. This divergence indicates that deferred or non-cash tax effects are influencing the asset base adjustments in recent years.

Total Asset Turnover

The reported total asset turnover ratio initially decreased from 0.44 in 2019 to 0.38 in 2020, suggesting reduced efficiency in utilizing assets to generate revenue during that year. The ratio then improved gradually, reaching 0.48 by 2023, indicating enhanced asset productivity. However, in 2024, the ratio declined to 0.40, pointing to a decrease in efficiency despite the growth in asset base. The adjusted total asset turnover ratio shows a slightly different trend in 2024, rising to 0.46 instead of falling, which suggests that when accounting for adjustments related to income taxes, asset utilization appears more efficient than the reported figure indicates.

Insights and Implications

The continuous increase in total assets highlights aggressive expansion or investment activities. The variations in total asset turnover ratios imply fluctuating efficiency in generating sales from assets. The temporary dip in efficiency, especially notable in 2020, could relate to external factors affecting operational performance. The adjusted ratios suggest that deferred tax items impact the perceived efficiency, indicating the importance of considering tax adjustments for a more accurate assessment of asset utilization. Overall, despite growing asset size, maintaining or improving asset turnover is crucial to ensure the company sustains operational effectiveness.

Total Assets

There is a clear upward trend in both reported and adjusted total assets over the six-year period. Reported total assets increased steadily from $6.59 billion in 2019 to nearly $20 billion in 2024, representing more than a threefold increase. Adjusted total assets follow a similar pattern, rising from $6.59 billion to approximately $17.59 billion by 2024. The gap between reported and adjusted total assets widens starting in 2023, indicating adjustments that reduce total assets by a noticeable margin in the most recent years.

Stockholders’ Equity

Reported stockholders’ equity experienced significant volatility throughout the examined timeframe. Initially, it declined sharply from $1.59 billion in 2019 to a low point around $210 million in 2022, before rebounding strongly to approximately $5.17 billion in 2024. Adjusted stockholders’ equity reflects a similar trajectory but consistently remains slightly lower than reported equity. The most substantial recovery occurs between 2022 and 2024, signaling an improvement in the equity base after several years of contraction.

Financial Leverage

Financial leverage, expressed as a ratio, exhibits considerable fluctuations. Both reported and adjusted financial leverage increase dramatically from 2019 through 2022, peaking at very high levels (reported: 58.35; adjusted: 61.64), which indicates a substantial increase in liabilities relative to equity during this period. Following this peak, leverage ratios sharply decrease in 2023 and 2024, returning to more moderate levels (reported: 3.87; adjusted: 5.57). The adjusted leverage ratio remains consistently higher than the reported ratio in the latest years, suggesting adjustments that amplify the leverage effect.

Overall Insights

The data reflect a period of rapid growth in total assets, accompanied by notable fluctuations in equity and leverage. The company appears to have undergone a phase of increasing financial leverage and declining equity up to 2022, which might indicate aggressive financing strategies or restructuring activities. Post-2022, there is a marked deleveraging and substantial strengthening of the equity position, pointing to improved financial stability and possibly successful capital management or profitability improvements. Adjustments related to deferred income tax create modest yet consistent differences between reported and adjusted figures, particularly evident in recent periods, and should be monitored as they affect key financial metrics.

The financial data reveals significant fluctuations and notable trends over the analyzed periods across reported and adjusted figures for net income, stockholders’ equity, and return on equity (ROE).

Net Income (Loss)

Both reported and adjusted net income exhibit substantial volatility over the years. Initially, the company recorded negative net income, with a peak loss around the periods ending in 2020 and 2021. The adjusted net income consistently shows slightly larger losses compared to reported figures, signifying the impact of annual reported and deferred income tax adjustments.

From the period ending July 31, 2022 onwards, there is a sharp reversal from losses to positive net income. The reported net income surges to 439.7 million USD by 2023 and further escalates significantly to 2.58 billion USD by 2024. Adjusted net income follows a similar pattern, turning positive in 2023 at approximately 452.2 million USD and then increasing to 543.8 million USD in 2024, though the growth rate is less dramatic compared to reported figures.

Stockholders’ Equity

Reported stockholders’ equity decreased markedly from 1.59 billion USD in 2019 to a low of 210 million USD in 2022, reflecting either accumulated losses or other equity reductions. However, it rapidly recovers in 2023 to approximately 1.75 billion USD and then experiences a pronounced increase to nearly 5.17 billion USD by 2024.

Adjusted stockholders’ equity trends similarly, showing a decline to under 200 million USD in 2022 before rebounding to 1.75 billion USD in 2023. Nevertheless, the adjusted equity value growth to 3.16 billion USD in 2024, while substantial, remains significantly below the reported figure, suggesting that tax-related adjustments materially affect equity valuation.

Return on Equity (ROE)

The reported ROE indicates negative returns from 2019 through 2022, with a deepening negative trend, reaching a low of -127.14% in 2022. This suggests significant unrealized losses relative to shareholders' equity during this period. In 2023, there is a dramatic reversal with reported ROE turning positive at 25.15%, and then further increasing to 49.86% in 2024, indicative of improved profitability and shareholder value generation.

The adjusted ROE follows a similar negative trend from 2019 to 2022 but decreases more sharply, reaching -135.87% by 2022. The rebound in adjusted ROE is observed in 2023 with a positive return of 25.78%, but unlike the reported ROE, the adjusted ROE advances only to 17.22% in 2024. This divergence implies that tax adjustments have a significant effect on normalized profitability metrics, potentially indicating non-recurring tax-related benefits impacting reported performance.

Overall, the data highlights a company facing prolonged financial challenges and losses up to 2022, followed by a strong and rapid improvement in profitability and equity values from 2023 onward. The alignment yet distinction between reported and adjusted metrics underscores the material effect of income tax adjustments on financial statements. This pattern suggests effective operational or strategic changes leading to enhanced financial health, but also indicates that stakeholders should carefully consider the adjustments when evaluating performance and equity trends.

The financial data reveals several notable trends over the analyzed periods. The reported net income shows a significant fluctuation: initially recording losses from 2019 through 2022, with the lowest reported loss occurring in 2021. Thereafter, there is a marked improvement in 2023 and 2024, transitioning into positive net income and reaching a substantial peak in 2024. The adjusted net income follows a similar pattern but consistently reflects slightly larger losses compared to the reported figures until 2023, after which it also becomes positive, though with a more moderate growth compared to reported net income.

Regarding total assets, both reported and adjusted values demonstrate steady growth throughout the entire timeframe. Assets increased nearly threefold from 2019 to 2024, with reported total assets rising somewhat faster than the adjusted values in the most recent year. This indicates sustained expansion of the company's asset base over the six-year horizon.

Return on Assets (ROA) metrics also exhibit meaningful variation. The reported ROA is negative from 2019 to 2022, reflecting the net income losses relative to asset size, and turns positive in 2023, showing improvement in asset utilization. This is followed by a substantial increase in 2024. The adjusted ROA retains the same general trends but remains considerably lower in 2024 compared to the reported figure, indicating the adjustment effects reduce the apparent profitability relative to assets. Both ROA measures reflect the shift from unprofitable to profitable operations over time, with asset growth and income improvement driving this change.

Net Income (Reported vs. Adjusted)

Losses prevailed between 2019 and 2022, with reported losses peaking in 2021. A notable reversal took place in 2023 and 2024, where reported net income soared, surpassing adjusted figures significantly by 2024.

Adjusted net income mirrored these dynamics but consistently indicated larger losses until the turning point in 2023, and achieved only modest gains relative to reported figures afterward.

Total Assets (Reported vs. Adjusted)

Both measures show consistent growth, nearly tripling over six years, underscoring ongoing expansion. In 2024, the gap between reported and adjusted total assets widened, suggesting more substantial accounting adjustments pertaining to asset values in that period.

Return on Assets (ROA, Reported vs. Adjusted)

ROA remained negative through 2022 for both metrics, corresponding with net losses. Reported ROA improved to positive levels in 2023 and accelerated sharply in 2024, indicating enhanced efficiency or profitability relative to assets.

Adjusted ROA improved similarly but lagged behind significantly in 2024, suggesting adjustments temper the apparent gains in asset utilization and profitability.

Overall, the patterns indicate a recovery and subsequent strong profitability combined with asset growth. The divergence between reported and adjusted figures, especially in later years, highlights the impact of accounting adjustments on assessing true economic performance.