Qualcomm Inc. (NASDAQ:QCOM)

Current Provision

The current income tax provision exhibited fluctuations over the six-year period. Initially, it decreased from 1158 million USD in 2019 to 737 million USD in 2020, followed by a notable increase to 1468 million USD in 2021. This upward trend continued with a peak of 2021 million USD in 2022. However, a decline occurred in 2023, when the provision dropped to 1730 million USD before rising again to 2114 million USD in 2024. Overall, the current provision showed volatility with an overall increasing tendency toward the later years.

Deferred Provision (Benefit)

The deferred income tax provision experienced a significant downward trend during the period. It started at a positive 1937 million USD in 2019, transitioning sharply into negative figures from 2020 onwards, with values of -216 million USD in 2020, -237 million USD in 2021, and -9 million USD in 2022. Subsequently, the negative deferred provision deepened considerably, reaching -1626 million USD in 2023 and further declining to -1888 million USD in 2024. This pattern indicates increasing deferred tax benefits over time, particularly pronounced in the final two years.

Income Tax Provision from Continuing Operations

The overall income tax provision from continuing operations demonstrated pronounced volatility across the years. The provision sharply dropped from 3095 million USD in 2019 to 521 million USD in 2020, then increased moderately to 1231 million USD in 2021, followed by a rise to 2012 million USD in 2022. A significant decline occurred in 2023, with the provision reducing to 104 million USD, before a modest increase to 226 million USD in 2024. This trend reflects considerable variation, with the provision peaking early and showing large decreases in the recent years.

Summary of Trends and Insights

The data reveals contrasting dynamics between current and deferred income tax provisions. The current provision generally increased over the period, despite some fluctuations, suggesting rising taxable income or changes in current tax liabilities. Conversely, the deferred provision transitioned from a substantial positive value to increasing negative amounts, implying growing deferred tax assets or recognition of future tax benefits. The combined effect is evident in the income tax provision from continuing operations, which showed variable levels likely influenced by the interplay between current and deferred tax elements. Notably, the sharp reduction in overall tax provision in 2023 and 2024 may indicate significant changes in tax planning, adjustments, or operational results affecting tax expenses.

Federal Statutory Tax Rate

The federal statutory tax rate remained constant at 21% throughout the analyzed six-year period from 2019 to 2024. This stability indicates no changes in the prevailing federal tax legislation applicable to the entity during these years.

Effective Tax Rate

The effective tax rate exhibited significant fluctuations over the same time frame. In 2019, it was notably high at 41.37%, almost double the statutory rate. It then dropped drastically to 9% in 2020 and showed a modest increase to 12% in 2021 and 13% in 2022. Subsequently, the effective tax rate declined further to 1% in 2023 and slightly increased to 2% in 2024.

These trends suggest considerable changes in tax planning, deductions, credits, or other factors impacting the effective rate. The substantial reduction from 2019 onwards indicates an improvement in tax efficiency or recognition of tax benefits reducing the tax burden. The persistently low effective tax rate compared to the statutory rate in the last three years points to sustained favorable tax positions or structural adjustments affecting taxable income.

Capitalized Research and Development Expenditures

Values are only available for the last two years, showing a significant increase from 1,490 million US dollars in 2023 to 3,015 million US dollars in 2024, indicating an intensified investment in R&D activities.

Unused Tax Credits

A consistent upward trend is observed from 1,137 million in 2019 to 2,172 million in 2024, reflecting increasing tax credit accumulations over the period.

Customer Incentives

Starting at 537 million in 2020, customer incentives peaked at 807 million in 2022 before declining to 659 million in 2023 and recovering slightly to 769 million in 2024, suggesting fluctuating promotional efforts or contractual obligations.

Unused Net Operating Losses

The figures fluctuate over time, starting at 619 million in 2019, dipping to 364 million in 2023, then rising again to 719 million in 2024, indicating variability in the company's operational losses eligible for carryforward.

Accrued Liabilities and Reserves

Values show variability with a peak of 648 million in 2019, substantially decreasing to 275 million in 2020, then fluctuating and ending near 397 million in 2024, reflecting changes in expected obligations or reserve needs.

Operating Lease Liabilities

From 107 million in 2020, a gradual increase is seen each year, reaching 282 million in 2024, signaling growing lease commitments over the period.

Share-Based Compensation

This item rose steadily from 115 million in 2019 to 285 million in 2023, followed by a sharp decrease to 152 million in 2024, pointing to a potential change in compensation strategy or stock-based remuneration fluctuations.

Unrealized Losses on Other Investments and Marketable Securities

The figures fluctuate without a clear trend, with a low of 106 million in 2021 and a high of 235 million in 2020, settling around 146 million in 2024, indicating varying market valuations.

Other (Positive Values)

This category generally declines from 520 million in 2019 to 346 million in 2021, followed by slight recovery to 459 million in 2024, reflecting miscellaneous financial items with minor fluctuations.

Gross Deferred Tax Assets

An increasing trend is clearly visible, rising from 3,203 million in 2019 to 8,111 million in 2024, illustrating amplified future tax benefits expected to be realized.

Valuation Allowance

This allowance grows in magnitude (negative values increasing) from -1,672 million in 2019 to -2,223 million in 2022 before partially improving to -2,061 million in 2024, indicating adjustments in reserve for potentially uncollectible deferred tax assets.

Net Deferred Tax Assets

Overall growth is observed, starting at 1,531 million in 2019 and more than tripling to 6,050 million in 2024, suggesting enhanced prospects for recognizing future tax benefits after valuation adjustments.

Intangible Assets

Consistent negative values that deepen from -216 million in 2019 to -388 million in 2024, showing an increase in accumulated amortization or impairments in intangible assets.

Operating Lease Assets

Available data from 2020 onward show increasing negative values, moving from -100 million to -248 million in 2024, reflecting recognition of right-of-use assets associated with operating leases.

Unrealized Gains on Other Investments and Marketable Securities

Negative values deepen over time from -99 million in 2019 to -169 million in 2024, indicating recognized unrealized losses or reduced gains in securities held.

Other (Negative Values)

Negative amounts fluctuate between -123 million and -199 million over the period, with a moderate decline to -197 million in 2024, representing miscellaneous liabilities or contra-assets.

Deferred Tax Liabilities

Liabilities increase over time from -438 million in 2019 to -1,002 million in 2024, consistent with growth in taxable temporary differences.

Net Deferred Tax Assets (Liabilities)

Steady positive growth is exhibited, with values rising from 1,093 million in 2019 to 5,048 million in 2024, underscoring a strengthening net deferred tax asset position after liabilities are considered.

Non-current Deferred Tax Assets

The value of non-current deferred tax assets has exhibited a consistent upward trend over the six-year period. Starting at US$1,196 million in 2019, the figure steadily increased each year, reaching US$5,162 million by 2024. This represents more than a fourfold increase over the timeframe analyzed, indicating a growing recognition of future tax benefits. The increase was particularly noticeable in the last two years, where the assets grew from US$3,310 million in 2023 to US$5,162 million in 2024, suggesting potentially significant changes in tax planning or timing differences.

Non-current Deferred Tax Liabilities

The non-current deferred tax liabilities, recorded within other liabilities, remained relatively stable but showed some fluctuations during the period. Starting at US$103 million in 2019, the liabilities decreased to US$56 million in 2020, followed by a minor increase and subsequent volatility, reaching US$114 million in 2024. The values oscillated without a clear upward or downward long-term trend, reflecting possibly changing estimates or timing differences related to taxable temporary differences.

Overall Tax Asset and Liability Position

Comparing the two items, deferred tax assets have increased significantly while deferred tax liabilities have remained relatively minor and stable. This shift suggests a strengthening position in terms of deferred tax assets relative to deferred tax liabilities, which may positively impact the company's future tax expenses and cash flows.

Asset Trends

Both reported and adjusted total assets increased consistently over the examined periods from 2019 to 2024. Reported total assets grew from approximately $32.96 billion to $55.15 billion, while adjusted total assets rose from about $31.76 billion to $49.99 billion. The gap between reported and adjusted assets widened slightly over time, indicating increasing adjustments related to reported figures.

Liabilities Trends

Reported total liabilities showed a modest rise from around $28.05 billion in 2019, peaking at $31.29 billion in 2021, then gradually declining to $28.88 billion by 2024. Adjusted total liabilities followed a similar pattern, increasing initially to $31.23 billion in 2021 before decreasing to $28.77 billion in 2024. This suggests the company managed to reduce its liabilities after 2021 despite overall asset growth.

Stockholders’ Equity Trends

Stockholders’ equity experienced substantial growth in both reported and adjusted forms. Reported equity more than quintupled from $4.91 billion in 2019 to $26.27 billion in 2024. Adjusted equity showed a similar upward trajectory, rising from $3.82 billion to $21.23 billion. The strong increase in equity indicates improved capitalization and retained earnings over the years.

Net Income Patterns

Net income displayed volatile behavior with differing patterns between reported and adjusted figures. Reported net income generally increased until 2022, peaking at $12.94 billion, then dropped significantly to $7.23 billion in 2023 before recovering to $10.14 billion in 2024. Adjusted net income fluctuated less dramatically but showed a decline after 2019, falling from $6.32 billion to $4.98 billion in 2020, followed by growth through 2022. However, adjusted net income decreased again in 2023 and partially recovered in 2024. The discrepancies between reported and adjusted net income suggest that deferred income tax adjustments or other non-cash items impact earnings recognition.

Overall Financial Position

The company demonstrated robust asset growth coupled with careful liability management, resulting in markedly increased equity. The volatility in net income, particularly the divergence between reported and adjusted figures, highlights the significance of tax-related adjustments affecting profitability measures. The upward trajectory in equity alongside controlled liabilities points to strengthening financial resilience over the analyzed timeframe.

Net Profit Margin

Reported net profit margin showed an upward trend from 18.07% in 2019 to a peak of 29.27% in 2022, before declining to 20.19% in 2023 and recovering to 26.03% in 2024. The adjusted net profit margin followed a somewhat similar pattern but exhibited greater volatility, starting at 26.05% in 2019, decreasing to 21.17% in 2020, rising again to 29.25% in 2022, then dropping significantly to 15.65% in 2023 and partially recovering to 21.18% by 2024.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios generally increased from 2019 to 2022, with reported values rising from 0.74 to 0.90 and adjusted values from 0.76 to 0.94. However, in 2023 both ratios declined markedly, with reported turnover falling to 0.70 and adjusted to 0.75, before showing slight improvements in 2024, reaching 0.71 and 0.78 respectively. This suggests improved efficiency in asset utilization through 2022, followed by a decrease in 2023 and modest recovery thereafter.

Financial Leverage

Financial leverage demonstrated a consistent downward trend over the period. Reported leverage dropped from 6.71 in 2019 to 2.10 in 2024, while adjusted leverage decreased from a higher base of 8.32 in 2019 to 2.36 in 2024. This decline indicates a significant reduction in leverage, implying a possible strategic shift towards a more conservative capital structure or repayment of debt over time.

Return on Equity (ROE)

The reported ROE was high in early years, peaking at 90.88% in 2021, then declining sharply to 33.51% in 2023, with a slight increase to 38.60% in 2024. Adjusted ROE followed a similar trajectory but at generally higher levels, starting from 165.7% in 2019, falling to around 104% in 2020 and 2021, then decreasing steadily to 30.5% in 2023 before recovering to 38.89% in 2024. The substantial fluctuations suggest changes in profitability and financial leverage impact, with notable deterioration in 2023 and modest improvement thereafter.

Return on Assets (ROA)

Reported ROA increased from 13.31% in 2019 to 26.39% in 2022, followed by a decline to 14.17% in 2023 and recovery to 18.39% in 2024. Adjusted ROA mirrored this pattern but started at a higher value of 19.91% in 2019. The upward trend through 2022 indicates improving asset efficiency and profitability, which were partially reversed in 2023 and somewhat restored in the following year.

Overall Insights

The data reveals an overall improvement in profitability and asset utilization from 2019 to 2022. However, 2023 appears as a challenging year with noticeable declines across most metrics, particularly net profit margins, total asset turnover, and returns. The subsequent partial recovery in 2024 suggests some stabilization. The consistent decrease in financial leverage points to greater reliance on equity and reduced debt exposure, which may have influenced returns metrics. The adjusted figures generally show higher volatility and more pronounced changes compared to reported data, emphasizing the impact of tax adjustments on financial performance evaluation.

Reported Net Income

The reported net income exhibited a generally increasing trend from 2019 to 2024, starting at 4,386 million US dollars in 2019 and reaching a peak of 12,936 million in 2022. Subsequently, there was a noticeable decline to 7,232 million in 2023, followed by a recovery to 10,142 million in 2024.

Adjusted Net Income

Adjusted net income showed fluctuations over the period. It began at 6,323 million in 2019, decreased to 4,982 million in 2020, then increased to 12,927 million in 2022. From this peak, the adjusted net income dropped sharply to 5,606 million in 2023, before rising again to 8,254 million in 2024. The overall pattern indicates significant volatility with pronounced peaks and troughs.

Reported Net Profit Margin

The reported net profit margin displayed an upward trajectory from 18.07% in 2019 to a high of 29.27% in 2022. Thereafter, it declined to 20.19% in 2023, but partially recovered to 26.03% in 2024. The margin percentages are broadly consistent with the trends seen in reported net income, reflecting profitability dynamics relative to revenues.

Adjusted Net Profit Margin

The adjusted net profit margin followed a similar but more volatile pattern compared to the reported margin. Starting at 26.05% in 2019, it declined to 15.65% in 2023, signaling lower profitability in adjusted terms during that year. By 2024, the margin improved moderately to 21.18%. The fluctuation in adjusted margins over the years indicates variability in income adjustments, possibly due to deferred tax impacts or other accounting considerations.

Total Assets

The reported total assets consistently increased over the six-year period, rising from $32,957 million in 2019 to $55,154 million in 2024. This reflects steady growth, with a notable acceleration between 2021 and 2022 when assets increased by approximately 18.8%. Adjusted total assets followed a similar upward trajectory, growing from $31,761 million in 2019 to $49,992 million in 2024. The difference between reported and adjusted values narrowed slightly in recent years, indicating possible changes in deferred tax or other adjustments becoming less significant relative to overall asset size.

Total Asset Turnover

The reported total asset turnover ratio exhibited some volatility, starting at 0.74 in 2019 and dipping to a low of 0.66 in 2020. It rebounded strongly to a peak of 0.90 in 2022, before declining again to 0.71 by 2024. This suggests fluctuations in the efficiency with which the company utilizes its assets to generate revenue. Adjusted total asset turnover mirrored this pattern but consistently showed slightly higher ratios, ranging from 0.76 in 2019 to 0.78 in 2024, peaking at 0.94 in 2022. The higher adjusted ratios imply that income tax adjustments potentially enhance the apparent asset utilization efficiency.

Overall Trends and Insights

The data reveals robust asset growth over the reported periods, supporting expansion or investment activities. However, the asset turnover ratios indicate that this asset growth has not uniformly translated into proportionally higher revenue generation efficiencies, as the turnover peaked and then declined in recent years. The adjusted figures, reflective of tax-related adjustments, consistently suggest marginally better performance in asset utilization, indicating deferred income tax adjustments have a modest positive impact on performance metrics. Monitoring these trends against industry benchmarks would be valuable to contextualize operational effectiveness.

The data reveals several noteworthy trends in the financial position over the six-year period under review. Both reported and adjusted total assets consistently increased year over year, reflecting an expansion in asset base. Reported total assets grew from $32,957 million in 2019 to $55,154 million in 2024, representing a compound upward trajectory. Adjusted total assets followed a similar pattern, though slightly lower in absolute terms, increasing from $31,761 million to $49,992 million across the same years.

Stockholders’ equity, both reported and adjusted, displayed substantial growth across the timeframe. Reported stockholders’ equity exhibited a marked rise from $4,909 million in 2019 to $26,274 million in 2024, indicating significant strengthening of the equity base. Adjusted stockholders’ equity mirrored this trend, increasing from $3,816 million to $21,226 million, demonstrating enhanced equity position after accounting for income tax adjustments.

Financial leverage ratios show a consistent declining trend, indicating reduced reliance on debt financing relative to equity. Reported financial leverage ratio decreased from 6.71 in 2019 to 2.1 in 2024, suggesting a considerable reduction in leverage and potentially lower financial risk. The adjusted financial leverage ratio also declined from 8.32 to 2.36 over the same period, although values remained slightly higher compared to the reported figures, which could reflect the impact of deferred income tax adjustments on equity or asset valuation.

Overall, the trends suggest steady growth in the company’s asset base and equity, alongside a significant deleveraging process. The decreasing financial leverage implies a strengthening capital structure, potentially improving financial stability and creditworthiness. The disparity between reported and adjusted figures predominantly reflects the impact of income tax considerations, but both sets of data consistently point to positive financial reinforcement over the years analyzed.

The financial data over the six-year period reveals notable trends in income, equity, and profitability metrics, both on a reported and adjusted basis.

Net Income Trends

The reported net income exhibits a generally positive trajectory, increasing substantially from 4,386 million US dollars in 2019 to a peak of 12,936 million in 2022, followed by a sharp decline to 7,232 million in 2023, and a partial recovery to 10,142 million in 2024. The adjusted net income follows a similar overall upward trend but displays more variability, starting at 6,323 million in 2019, dipping below reported figures in 2020 and 2023, and ending at 8,254 million in 2024. This suggests that adjustments, likely related to deferred tax items, have a significant impact on the net income figures from year to year.

Stockholders’ Equity Development

Reported stockholders’ equity shows consistent and significant growth, rising from 4,909 million in 2019 to 26,274 million in 2024. The adjusted equity figures also increase over this period but at a slower pace, growing from 3,816 million to 21,226 million. The divergence in reported versus adjusted equity reflects the impact of tax adjustments and possibly other accounting items on the equity base, with reported equity substantially higher in all years.

Return on Equity (ROE) Analysis

Reported ROE starts exceptionally high at 89.35% in 2019, gradually declining to 38.6% by 2024. This drop indicates that while net income and equity have both increased, equity has grown proportionally more, reducing the profitability ratio. Adjusted ROE follows a similar declining pattern, starting even higher at 165.7% in 2019 and falling sharply to 38.89% in 2024. Notably, adjusted ROE exceeds reported ROE in the early years but converges closely by 2023 and 2024, indicating that the adjustments had a more pronounced effect on profitability measures in the earlier part of the period.

Key Insights

The data indicates substantial growth in equity, which has moderated the ROE despite strong net income performances. The adjustments related to deferred income tax appear to notably affect profitability and equity metrics, particularly in the earlier years. The marked volatility in both reported and adjusted net income from 2022 to 2024 suggests possible external or operational challenges during this time frame. Overall, while the company has grown its equity base significantly, profitability as measured by ROE has declined, underscoring the importance of considering both adjusted and reported figures for a comprehensive financial performance assessment.

The data reveals notable fluctuations and trends in reported and adjusted financial measures over the six-year period ending in 2024.

Net Income

Reported net income grew substantially from 2019 to 2022, peaking at 12,936 million US dollars, then decreased sharply in 2023 before recovering partially in 2024. Adjusted net income followed a somewhat similar trajectory but showed more volatility, with values peaking in 2019 and 2022 and a marked decline in 2023 followed by a recovery in 2024. The divergence between reported and adjusted net income is most pronounced in certain years such as 2019 and 2023, indicating potential effects from tax adjustments or other non-operating factors impacting these results.

Total Assets

Both reported and adjusted total assets indicate steady growth over the entire period. Reported total assets increased from 32,957 million US dollars in 2019 to 55,154 million in 2024, while adjusted total assets grew from 31,761 million to 49,992 million. The difference between reported and adjusted total assets remains relatively consistent, suggesting minor but stable adjustments linked to deferred taxes or similar accounting items.

Return on Assets (ROA)

Reported ROA shows a rising trend from 13.31% in 2019 to a peak of 26.39% in 2022, then falls sharply in 2023 before rebounding to 18.39% in 2024. Adjusted ROA exhibits a similar pattern but with slightly higher peaks in early years (19.91% in 2019 and 27.38% in 2022) and a more pronounced decline to 11.75% in 2023, followed by a partial recovery to 16.51%. The fluctuations in ROA suggest variability in profitability relative to asset base, influenced by tax-related income adjustments and possibly operational performance variations.