Stock Analysis on Net
Stock Analysis on Net

Qualcomm Inc. (NASDAQ:QCOM)

Analysis of Goodwill and Intangible Assets

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Goodwill and Intangible Asset Disclosure

Qualcomm Inc., balance sheet: goodwill and intangible assets

US$ in millions

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Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017 Sep 25, 2016
Goodwill 7,246  6,323  6,282  6,498  6,623  5,679 
Technology-based 5,385  5,556  5,958  6,334  6,413  5,900 
Other 93  105  134  149  227  142 
Other intangible assets, gross carrying amount 5,478  5,661  6,092  6,483  6,640  6,042 
Accumulated amortization (4,020) (4,008) (3,920) (3,528) (2,903) (2,542)
Other intangible assets, net 1,458  1,653  2,172  2,955  3,737  3,500 
Goodwill and other intangible assets 8,704  7,976  8,454  9,453  10,360  9,179 

Based on: 10-K (filing date: 2021-11-03), 10-K (filing date: 2020-11-04), 10-K (filing date: 2019-11-06), 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02).

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.’s goodwill increased from 2019 to 2020 and from 2020 to 2021.
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.’s other intangible assets, net decreased from 2019 to 2020 and from 2020 to 2021.
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.’s goodwill and other intangible assets decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Adjustments to Financial Statements: Removal of Goodwill

Qualcomm Inc., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017 Sep 25, 2016
Adjustment to Total Assets
Total assets (as reported) 41,240  35,594  32,957  32,686  65,486  52,359 
Less: Goodwill 7,246  6,323  6,282  6,498  6,623  5,679 
Total assets (adjusted) 33,994  29,271  26,675  26,188  58,863  46,680 
Adjustment to Total Qualcomm Stockholders’ Equity
Total Qualcomm stockholders’ equity (as reported) 9,950  6,077  4,909  928  30,746  31,778 
Less: Goodwill 7,246  6,323  6,282  6,498  6,623  5,679 
Total Qualcomm stockholders’ equity (adjusted) 2,704  (246) (1,373) (5,570) 24,123  26,099 
Adjustment to Net Income (loss) Attributable To Qualcomm
Net income (loss) attributable to Qualcomm (as reported) 9,043  5,198  4,386  (4,864) 2,466  5,705 
Add: Goodwill impairments —  —  146  129  —  17 
Net income (loss) attributable to Qualcomm (adjusted) 9,043  5,198  4,532  (4,735) 2,466  5,722 

Based on: 10-K (filing date: 2021-11-03), 10-K (filing date: 2020-11-04), 10-K (filing date: 2019-11-06), 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02).

Qualcomm Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Qualcomm Inc., adjusted financial ratios

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Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017 Sep 25, 2016
Net Profit Margin
Reported net profit margin 26.94% 22.09% 18.07% -21.40% 11.06% 24.22%
Adjusted net profit margin 26.94% 22.09% 18.67% -20.83% 11.06% 24.29%
Total Asset Turnover
Reported total asset turnover 0.81 0.66 0.74 0.70 0.34 0.45
Adjusted total asset turnover 0.99 0.80 0.91 0.87 0.38 0.50
Financial Leverage
Reported financial leverage 4.14 5.86 6.71 35.22 2.13 1.65
Adjusted financial leverage 12.57 — — — 2.44 1.79
Return on Equity (ROE)
Reported ROE 90.88% 85.54% 89.35% -524.14% 8.02% 17.95%
Adjusted ROE 334.43% — — — 10.22% 21.92%
Return on Assets (ROA)
Reported ROA 21.93% 14.60% 13.31% -14.88% 3.77% 10.90%
Adjusted ROA 26.60% 17.76% 16.99% -18.08% 4.19% 12.26%

Based on: 10-K (filing date: 2021-11-03), 10-K (filing date: 2020-11-04), 10-K (filing date: 2019-11-06), 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Qualcomm Inc.’s adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Qualcomm Inc.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Qualcomm Inc.’s adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.

Qualcomm Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017 Sep 25, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Qualcomm 9,043  5,198  4,386  (4,864) 2,466  5,705 
Revenues 33,566  23,531  24,273  22,732  22,291  23,554 
Profitability Ratio
Net profit margin1 26.94% 22.09% 18.07% -21.40% 11.06% 24.22%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Qualcomm 9,043  5,198  4,532  (4,735) 2,466  5,722 
Revenues 33,566  23,531  24,273  22,732  22,291  23,554 
Profitability Ratio
Adjusted net profit margin2 26.94% 22.09% 18.67% -20.83% 11.06% 24.29%

Based on: 10-K (filing date: 2021-11-03), 10-K (filing date: 2020-11-04), 10-K (filing date: 2019-11-06), 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02).

2021 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Qualcomm ÷ Revenues
= 100 × 9,043 ÷ 33,566 = 26.94%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Qualcomm ÷ Revenues
= 100 × 9,043 ÷ 33,566 = 26.94%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Qualcomm Inc.’s adjusted net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017 Sep 25, 2016
As Reported
Selected Financial Data (US$ in millions)
Revenues 33,566  23,531  24,273  22,732  22,291  23,554 
Total assets 41,240  35,594  32,957  32,686  65,486  52,359 
Activity Ratio
Total asset turnover1 0.81 0.66 0.74 0.70 0.34 0.45
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues 33,566  23,531  24,273  22,732  22,291  23,554 
Adjusted total assets 33,994  29,271  26,675  26,188  58,863  46,680 
Activity Ratio
Adjusted total asset turnover2 0.99 0.80 0.91 0.87 0.38 0.50

Based on: 10-K (filing date: 2021-11-03), 10-K (filing date: 2020-11-04), 10-K (filing date: 2019-11-06), 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02).

2021 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 33,566 ÷ 41,240 = 0.81

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 33,566 ÷ 33,994 = 0.99

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Qualcomm Inc.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017 Sep 25, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets 41,240  35,594  32,957  32,686  65,486  52,359 
Total Qualcomm stockholders’ equity 9,950  6,077  4,909  928  30,746  31,778 
Solvency Ratio
Financial leverage1 4.14 5.86 6.71 35.22 2.13 1.65
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 33,994  29,271  26,675  26,188  58,863  46,680 
Adjusted total Qualcomm stockholders’ equity 2,704  (246) (1,373) (5,570) 24,123  26,099 
Solvency Ratio
Adjusted financial leverage2 12.57 — — — 2.44 1.79

Based on: 10-K (filing date: 2021-11-03), 10-K (filing date: 2020-11-04), 10-K (filing date: 2019-11-06), 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02).

2021 Calculations

1 Financial leverage = Total assets ÷ Total Qualcomm stockholders’ equity
= 41,240 ÷ 9,950 = 4.14

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Qualcomm stockholders’ equity
= 33,994 ÷ 2,704 = 12.57

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017 Sep 25, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Qualcomm 9,043  5,198  4,386  (4,864) 2,466  5,705 
Total Qualcomm stockholders’ equity 9,950  6,077  4,909  928  30,746  31,778 
Profitability Ratio
ROE1 90.88% 85.54% 89.35% -524.14% 8.02% 17.95%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Qualcomm 9,043  5,198  4,532  (4,735) 2,466  5,722 
Adjusted total Qualcomm stockholders’ equity 2,704  (246) (1,373) (5,570) 24,123  26,099 
Profitability Ratio
Adjusted ROE2 334.43% — — — 10.22% 21.92%

Based on: 10-K (filing date: 2021-11-03), 10-K (filing date: 2020-11-04), 10-K (filing date: 2019-11-06), 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02).

2021 Calculations

1 ROE = 100 × Net income (loss) attributable to Qualcomm ÷ Total Qualcomm stockholders’ equity
= 100 × 9,043 ÷ 9,950 = 90.88%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Qualcomm ÷ Adjusted total Qualcomm stockholders’ equity
= 100 × 9,043 ÷ 2,704 = 334.43%

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Sep 26, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Sep 24, 2017 Sep 25, 2016
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Qualcomm 9,043  5,198  4,386  (4,864) 2,466  5,705 
Total assets 41,240  35,594  32,957  32,686  65,486  52,359 
Profitability Ratio
ROA1 21.93% 14.60% 13.31% -14.88% 3.77% 10.90%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Qualcomm 9,043  5,198  4,532  (4,735) 2,466  5,722 
Adjusted total assets 33,994  29,271  26,675  26,188  58,863  46,680 
Profitability Ratio
Adjusted ROA2 26.60% 17.76% 16.99% -18.08% 4.19% 12.26%

Based on: 10-K (filing date: 2021-11-03), 10-K (filing date: 2020-11-04), 10-K (filing date: 2019-11-06), 10-K (filing date: 2018-11-07), 10-K (filing date: 2017-11-01), 10-K (filing date: 2016-11-02).

2021 Calculations

1 ROA = 100 × Net income (loss) attributable to Qualcomm ÷ Total assets
= 100 × 9,043 ÷ 41,240 = 21.93%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Qualcomm ÷ Adjusted total assets
= 100 × 9,043 ÷ 33,994 = 26.60%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Qualcomm Inc.’s adjusted ROA improved from 2019 to 2020 and from 2020 to 2021.