Qualcomm Inc. (NASDAQ:QCOM)

Goodwill

The goodwill balance has shown a consistent upward trend over the periods analyzed. Starting at $6,323 million, it increased to $11,358 million by the latest period. Notably, there was a significant rise between 2021 and 2022, indicating potential acquisitions or reassessments of goodwill values driving this growth.

Technology-based Intangible Assets

Technology-based intangible assets decreased markedly, from $5,556 million in 2020 to $2,553 million in the most recent period. This decline suggests ongoing amortization or impairments exceeding new additions, reflecting a reduction in the value or composition of technology-related assets.

Other Intangible Assets

The category labeled as other intangible assets has maintained a relatively stable value, with a minor decrease from $105 million to $70 million. The stability indicates limited additions or disposals in this segment.

Other Intangible Assets, Gross Carrying Amount

The gross carrying amount of other intangible assets reveals a downward movement from $5,661 million to $2,623 million. This decline parallels the decrease observed in technology-based assets, possibly indicating the same asset category being referenced or reflecting disposals and amortization over time.

Accumulated Amortization

Accumulated amortization has significantly decreased in absolute terms from -$4,008 million to -$1,475 million, indicating an unusual pattern. Since accumulated amortization typically increases over time as assets are amortized, this negative trend may suggest reclassifications, write-offs, or adjustments reversing previously recorded amortization.

Other Intangible Assets, Net

Net other intangible assets declined from $1,653 million in 2020 to $1,148 million in the latest period. Despite fluctuations within the periods, the overall trend reflects a reduction consistent with the declining gross carrying amount and changes in accumulated amortization.

Goodwill and Other Intangible Assets Total

The aggregated figure for goodwill and other intangible assets increased from $7,976 million to $12,506 million. This increase is mainly driven by the expansion in goodwill, which offsets the net decline in other intangible assets, resulting in overall growth in intangible asset values on the balance sheet.

The analysis of the financial data reveals distinct trends in both reported and goodwill-adjusted figures over the observed periods.

Total Assets

Reported total assets demonstrate a generally increasing trend from 35,594 million USD in 2020 to a peak of 55,154 million USD in 2024, followed by a decline to 50,143 million USD in 2025. The adjusted total assets, which exclude goodwill, also rise steadily from 29,271 million USD in 2020 to 44,355 million USD in 2024, then decrease to 38,785 million USD in 2025. This pattern suggests that the company experienced asset growth up to 2024, with a subsequent contraction or asset revaluation in the latest period. The consistent positive gap between reported and adjusted total assets indicates the presence and significant impact of goodwill or other intangible assets.

Stockholders’ Equity

Reported stockholders’ equity shows a strong growth trend from 6,077 million USD in 2020 to 26,274 million USD in 2024, before declining to 21,206 million USD in 2025. Adjusted stockholders’ equity, which accounts for goodwill adjustments, starts at a negative value of -246 million USD in 2020, shifting to positive territory and growing to 15,475 million USD by 2024, then falling to 9,848 million USD in 2025. The initial negative adjusted equity suggests significant goodwill impairments or adjustments at the start of the period. The growth in adjusted equity over time reflects strengthening equity position after excluding goodwill. The decline in both reported and adjusted equity in 2025 indicates either dividends, losses, asset impairments, or other changes affecting net equity.

General Observations

The data reveals that the company substantially increased its asset base and equity over the first five years, indicating expansion or acquisition activities possibly supported by goodwill recognition. The decrease in 2025 across both adjusted and reported figures suggests a corrective phase or revaluation. The divergence between reported and adjusted equity highlights the impact of intangible assets on the financial structure. The overall pattern denotes growth followed by a consolidation or write-down phase in the latest year.

The data reveals trends in both reported and goodwill-adjusted financial metrics over a six-year period. These metrics include total asset turnover, financial leverage, return on equity (ROE), and return on assets (ROA).

Total Asset Turnover

The reported total asset turnover shows a moderate increase from 0.66 in 2020 to a peak of 0.9 in 2022, followed by a decline to 0.7 in 2023 before gradually increasing again to 0.88 by 2025. The adjusted total asset turnover, which accounts for goodwill adjustments, exhibits a similar but consistently higher trend, rising from 0.8 in 2020 to 1.15 in 2022. After a decrease to 0.89 in 2023, it stabilizes around 0.88 in 2024 and recovers to 1.14 by 2025. This suggests an improvement in asset efficiency once goodwill is excluded, although asset utilization fluctuates over the years.

Financial Leverage

Reported financial leverage shows a consistent downward trend, declining from 5.86 in 2020 to 2.1 in 2024, with a slight increase to 2.36 in 2025. This indicates a reduction in the use of debt relative to equity over time. The adjusted financial leverage, available from 2021 onwards, starts at a very high level of 12.57, then sharply declines to 5.13 in 2022 and continues falling to 2.87 in 2024 before a modest uptick to 3.94 in 2025. This pattern suggests that after adjusting for goodwill, the company markedly reduced leverage but maintains a higher leverage level compared to the reported figures in recent years.

Return on Equity (ROE)

The reported ROE experiences a substantial decline from very high levels, starting at 85.54% in 2020, peaking at 90.88% in 2021, then falling to 33.51% by 2023, and further to 26.13% in 2025. The adjusted ROE, which excludes goodwill effects, starts extraordinarily high at 334.43% in 2021, declines steeply to 172.37% in 2022, and continues decreasing to 56.27% by 2025. Although both reported and adjusted ROE decrease significantly, the adjusted figures remain notably higher, indicating that excluding goodwill reveals a stronger equity return that nevertheless softens considerably over the period.

Return on Assets (ROA)

The reported ROA exhibits growth from 14.6% in 2020 to a peak of 26.39% in 2022, dropping thereafter to 11.05% in 2025. The adjusted ROA reflects a similar trajectory but at higher levels, increasing from 17.76% in 2020 to 33.59% in 2022, then declining to 14.29% in 2025. This suggests that excluding goodwill results in higher asset returns, highlighting the underlying profitability of tangible assets, though profitability wanes in the latter years reviewed.

Overall, the patterns suggest improvements in asset efficiency and profitability when adjustments for goodwill are made. Nevertheless, there is notable volatility and a general declining trend in returns and financial leverage in recent years, which could indicate changes in business operations, capital structure, or external market conditions impacting performance.

The analysis of the financial data over the reported periods reveals various trends in total assets and asset turnover ratios, both in reported and goodwill-adjusted terms.

Total Assets

The reported total assets showed a general upward trend from approximately US$35.6 billion in 2020 to a peak of about US$55.2 billion in 2024, followed by a decline to approximately US$50.1 billion in 2025.

The goodwill-adjusted total assets also exhibited a consistent increase from around US$29.3 billion in 2020 to nearly US$44.4 billion in 2024, then decreased to roughly US$38.8 billion in 2025. This indicates that a significant portion of the asset base includes goodwill, and the adjusted figures provide insight into the tangible asset trends excluding goodwill.

Asset Turnover Ratios

For reported total asset turnover, the ratio improved steadily from 0.66 in 2020 to a high of 0.90 in 2022. However, it experienced a decline in 2023 to 0.70 and remained fairly stable around 0.71 in 2024 before rising again to 0.88 in 2025. This suggests fluctuations in how efficiently the company utilized its assets to generate revenue, with some periods indicating less effective asset use.

The adjusted total asset turnover showed a similar pattern but generally reflected higher efficiency ratios than the reported figures. Starting at 0.80 in 2020, it increased to a peak of 1.15 in 2022, dropped to around 0.89 in 2023, then slightly declined to 0.88 in 2024 before rebounding to 1.14 in 2025. This suggests that when goodwill is excluded, the company’s asset utilization appears stronger and follows comparable cyclical trends.

Overall, the trends indicate growth in asset size over the years followed by a recent contraction, while asset efficiency, measured through turnover ratios, improves initially but shows some volatility in the mid-term before recovering. The goodwill-adjusted data offers a clearer picture of the operational asset base and suggests better asset management performance compared to the reported values including goodwill. The fluctuation in turnover ratios may warrant further investigation into operational changes, strategic investments, or external market conditions impacting asset use efficiency.

The financial data reveals several notable trends in the company's reported and goodwill-adjusted figures over the examined periods.

Total Assets

Reported total assets have shown a generally increasing trend from 35,594 million US dollars in 2020 to a peak of 55,154 million US dollars in 2024, followed by a decrease to 50,143 million in 2025. Adjusted total assets, which exclude goodwill, follow a similar pattern but with lower absolute values, increasing from 29,271 million in 2020 to 44,355 million in 2024, then declining to 38,785 million in 2025. This suggests that the company expanded its asset base notably until 2024 with a retraction in the subsequent year.

Stockholders’ Equity

Reported stockholders' equity has risen significantly over the time span, nearly quadrupling from 6,077 million in 2020 to 26,274 million in 2024, before decreasing to 21,206 million in 2025. The adjusted stockholders’ equity also experienced a strong upward trajectory, starting from a negative value of -246 million in 2020 to 15,475 million in 2024, reflecting improved net asset value after adjusting for goodwill. However, it too declined to 9,848 million in 2025. The negative adjusted equity at the beginning highlights the impact of intangible assets on the company's net worth early in the period.

Financial Leverage

Reported financial leverage decreased steadily from 5.86 in 2020 to a low of 2.1 in 2024, indicating a reduction in reliance on debt financing relative to equity. It rose slightly to 2.36 in 2025. The adjusted financial leverage, which accounts for goodwill adjustments, shows higher and more volatile figures, starting at 12.57 in 2021 and steadily decreasing to 2.87 in 2024 before increasing again to 3.94 in 2025. This suggests that when excluding goodwill, the company has been more leveraged but has generally been working toward deleveraging, except for the uptick in 2025.

Overall, the trends indicate that the company expanded its asset and equity base significantly through 2024, followed by a contraction in 2025. The declining financial leverage ratios up to 2024 reflect a strengthening equity position relative to debt, though the inclusion of goodwill adjustments emphasizes higher leverage and volatility. The data imply a strategic shift or financial adjustment occurring in 2025, which could be associated with asset revaluation, changes in financing, or impairment of intangible assets.

The analysis of the financial data over the given periods reveals distinct trends in stockholders’ equity and return on equity (ROE) metrics, both reported and adjusted for goodwill.

Stockholders’ Equity

The reported stockholders’ equity shows a generally increasing trend from 6,077 million US dollars in 2020 to a peak of 26,274 million in 2024, followed by a decline to 21,206 million in 2025. This indicates significant growth in equity over five years, with a decrease in the latest period. The adjusted stockholders’ equity, which likely excludes the impact of goodwill, starts negative at -246 million in 2020, turning positive at 2,704 million in 2021 and continuing to rise substantially to 15,475 million in 2024. Similar to the reported figures, it declines to 9,848 million in 2025. This adjusted trend suggests that the goodwill adjustments mask some of the reported growth, exhibiting a less pronounced but still significant increase over time, with a notable reduction in the last year observed.

Return on Equity (ROE)

The reported ROE remains very high across all years, starting at 85.54% in 2020, peaking at 90.88% in 2021, and then generally declining to 26.13% by 2025. Despite the downward trend in later years, the reported ROE levels indicate a strong profitability relative to shareholders’ equity throughout the period. The adjusted ROE, which accounts for goodwill adjustments, shows more volatility and generally higher values. It starts missing in 2020, peaks exceptionally at 334.43% in 2021, then decreases steadily to 56.27% in 2025. Although it declines substantially from its peak, the adjusted ROE remains well above conventional levels, signaling very high returns on equity after excluding goodwill effects.

Insights and Patterns

The divergence between reported and adjusted figures suggests considerable goodwill on the balance sheet, impacting equity and return calculations. The peak in 2021 for both adjusted stockholders’ equity and adjusted ROE indicates an unusual event or valuation impact that strongly influenced these figures. The subsequent years show normalization but still retain above-average profitability levels. The decline in stockholders’ equity in 2025 for both reported and adjusted bases, coupled with the decrease in ROE, may imply challenges in equity growth or profitability sustainability in the most recent period examined.

The analysis of the reported and adjusted financial data over the six-year period reveals several notable trends in the company's asset base and return on assets (ROA).

Total Assets

The reported total assets have generally increased from US$35,594 million in 2020 to a peak of US$55,154 million in 2024, followed by a decline to US$50,143 million in 2025. This indicates overall growth in asset size with a slight contraction in the most recent year.

The adjusted total assets, which presumably exclude goodwill, also show a steady upward trend from US$29,271 million in 2020 to US$44,355 million in 2024, then decline to US$38,785 million in 2025. The adjusted figures follow a similar pattern but remain consistently lower than the reported assets, reflecting the impact of goodwill adjustments on total asset valuation.

Return on Assets (ROA)

The reported ROA exhibits volatility across the period, starting at 14.6% in 2020 and rising to a peak of 26.39% by 2022. It then declines sharply to 14.17% in 2023, partially recovers to 18.39% in 2024, and drops again to 11.05% in 2025. This suggests fluctuating profitability relative to the asset base.

The adjusted ROA demonstrates a similar volatility but at higher levels, ranging from 17.76% in 2020 and peaking at 33.59% in 2022. After a decrease to 17.9% in 2023, it increases again to 22.87% in 2024 before falling to 14.29% in 2025. The higher adjusted ROA values compared to the reported ROA indicate that excluding goodwill tends to improve the apparent efficiency of asset utilization.

Overall, the data suggest the company experienced asset growth and increased profitability efficiency up to 2022, followed by a period of declining asset values and profitability ratios. The adjustments for goodwill consistently show a more favorable ROA, emphasizing the significance of intangible assets on financial performance metrics. The recent downward trend in both asset size and profitability metrics warrants close monitoring and potentially indicates challenges in sustaining asset utilization and earnings generation.