Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Qualcomm Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Sep 24, 2023	Sep 25, 2022	Sep 26, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
Goodwill	10,642)	10,508)	7,246)	6,323)	6,282)	6,498)
Technology-based	4,292)	5,517)	5,385)	5,556)	5,958)	6,334)
Other	70)	90)	93)	105)	134)	149)
Other intangible assets, gross carrying amount	4,362)	5,607)	5,478)	5,661)	6,092)	6,483)
Accumulated amortization	(2,954)	(3,725)	(4,020)	(4,008)	(3,920)	(3,528)
Other intangible assets, net	1,408)	1,882)	1,458)	1,653)	2,172)	2,955)
Goodwill and other intangible assets	12,050)	12,390)	8,704)	7,976)	8,454)	9,453)

Based on: 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Qualcomm Inc. goodwill increased from 2021 to 2022 and from 2022 to 2023.
Other intangible assets, net	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Qualcomm Inc. other intangible assets, net increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Goodwill and other intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Qualcomm Inc. goodwill and other intangible assets increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Qualcomm Inc., adjustments to financial statements

US$ in millions

	Sep 24, 2023	Sep 25, 2022	Sep 26, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
Adjustment to Total Assets
Total assets (as reported)	51,040)	49,014)	41,240)	35,594)	32,957)	32,686)
Less: Goodwill	10,642)	10,508)	7,246)	6,323)	6,282)	6,498)
Total assets (adjusted)	40,398)	38,506)	33,994)	29,271)	26,675)	26,188)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	21,581)	18,013)	9,950)	6,077)	4,909)	928)
Less: Goodwill	10,642)	10,508)	7,246)	6,323)	6,282)	6,498)
Stockholders’ equity (adjusted)	10,939)	7,505)	2,704)	(246)	(1,373)	(5,570)
Adjustment to Net Income (loss)
Net income (loss) (as reported)	7,232)	12,936)	9,043)	5,198)	4,386)	(4,864)
Add: Goodwill impairments	—)	—)	—)	—)	146)	129)
Net income (loss) (adjusted)	7,232)	12,936)	9,043)	5,198)	4,532)	(4,735)

Based on: 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

Qualcomm Inc., Financial Data: Reported vs. Adjusted

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Qualcomm Inc., adjusted financial ratios

	Sep 24, 2023	Sep 25, 2022	Sep 26, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
Net Profit Margin
Reported net profit margin	20.19%	29.27%	26.94%	22.09%	18.07%	-21.40%
Adjusted net profit margin	20.19%	29.27%	26.94%	22.09%	18.67%	-20.83%
Total Asset Turnover
Reported total asset turnover	0.70	0.90	0.81	0.66	0.74	0.70
Adjusted total asset turnover	0.89	1.15	0.99	0.80	0.91	0.87
Financial Leverage
Reported financial leverage	2.37	2.72	4.14	5.86	6.71	35.22
Adjusted financial leverage	3.69	5.13	12.57	—	—	—
Return on Equity (ROE)
Reported ROE	33.51%	71.81%	90.88%	85.54%	89.35%	-524.14%
Adjusted ROE	66.11%	172.37%	334.43%	—	—	—
Return on Assets (ROA)
Reported ROA	14.17%	26.39%	21.93%	14.60%	13.31%	-14.88%
Adjusted ROA	17.90%	33.59%	26.60%	17.76%	16.99%	-18.08%

Based on: 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Qualcomm Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Qualcomm Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Qualcomm Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Qualcomm Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Qualcomm Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Qualcomm Inc., Financial Ratios: Reported vs. Adjusted

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	Sep 24, 2023	Sep 25, 2022	Sep 26, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	7,232)	12,936)	9,043)	5,198)	4,386)	(4,864)
Revenues	35,820)	44,200)	33,566)	23,531)	24,273)	22,732)
Profitability Ratio
Net profit margin¹	20.19%	29.27%	26.94%	22.09%	18.07%	-21.40%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss)	7,232)	12,936)	9,043)	5,198)	4,532)	(4,735)
Revenues	35,820)	44,200)	33,566)	23,531)	24,273)	22,732)
Profitability Ratio
Adjusted net profit margin²	20.19%	29.27%	26.94%	22.09%	18.67%	-20.83%

Based on: 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × 7,232 ÷ 35,820 = 20.19%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Revenues
= 100 × 7,232 ÷ 35,820 = 20.19%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Qualcomm Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Sep 24, 2023	Sep 25, 2022	Sep 26, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues	35,820)	44,200)	33,566)	23,531)	24,273)	22,732)
Total assets	51,040)	49,014)	41,240)	35,594)	32,957)	32,686)
Activity Ratio
Total asset turnover¹	0.70	0.90	0.81	0.66	0.74	0.70
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	35,820)	44,200)	33,566)	23,531)	24,273)	22,732)
Adjusted total assets	40,398)	38,506)	33,994)	29,271)	26,675)	26,188)
Activity Ratio
Adjusted total asset turnover²	0.89	1.15	0.99	0.80	0.91	0.87

Based on: 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 35,820 ÷ 51,040 = 0.70

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 35,820 ÷ 40,398 = 0.89

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Qualcomm Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Sep 24, 2023	Sep 25, 2022	Sep 26, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	51,040)	49,014)	41,240)	35,594)	32,957)	32,686)
Stockholders’ equity	21,581)	18,013)	9,950)	6,077)	4,909)	928)
Solvency Ratio
Financial leverage¹	2.37	2.72	4.14	5.86	6.71	35.22
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	40,398)	38,506)	33,994)	29,271)	26,675)	26,188)
Adjusted stockholders’ equity	10,939)	7,505)	2,704)	(246)	(1,373)	(5,570)
Solvency Ratio
Adjusted financial leverage²	3.69	5.13	12.57	—	—	—

Based on: 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 51,040 ÷ 21,581 = 2.37

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 40,398 ÷ 10,939 = 3.69

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Qualcomm Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Sep 24, 2023	Sep 25, 2022	Sep 26, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	7,232)	12,936)	9,043)	5,198)	4,386)	(4,864)
Stockholders’ equity	21,581)	18,013)	9,950)	6,077)	4,909)	928)
Profitability Ratio
ROE¹	33.51%	71.81%	90.88%	85.54%	89.35%	-524.14%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss)	7,232)	12,936)	9,043)	5,198)	4,532)	(4,735)
Adjusted stockholders’ equity	10,939)	7,505)	2,704)	(246)	(1,373)	(5,570)
Profitability Ratio
Adjusted ROE²	66.11%	172.37%	334.43%	—	—	—

Based on: 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × 7,232 ÷ 21,581 = 33.51%

² Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted stockholders’ equity
= 100 × 7,232 ÷ 10,939 = 66.11%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Qualcomm Inc. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

	Sep 24, 2023	Sep 25, 2022	Sep 26, 2021	Sep 27, 2020	Sep 29, 2019	Sep 30, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss)	7,232)	12,936)	9,043)	5,198)	4,386)	(4,864)
Total assets	51,040)	49,014)	41,240)	35,594)	32,957)	32,686)
Profitability Ratio
ROA¹	14.17%	26.39%	21.93%	14.60%	13.31%	-14.88%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss)	7,232)	12,936)	9,043)	5,198)	4,532)	(4,735)
Adjusted total assets	40,398)	38,506)	33,994)	29,271)	26,675)	26,188)
Profitability Ratio
Adjusted ROA²	17.90%	33.59%	26.60%	17.76%	16.99%	-18.08%

Based on: 10-K (reporting date: 2023-09-24), 10-K (reporting date: 2022-09-25), 10-K (reporting date: 2021-09-26), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

2023 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 7,232 ÷ 51,040 = 14.17%

² Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 7,232 ÷ 40,398 = 17.90%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Qualcomm Inc. adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Qualcomm Inc. (NASDAQ:QCOM)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Qualcomm Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Qualcomm Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)