Qualcomm Inc. (NASDAQ:QCOM)

Total Asset Turnover

The reported total asset turnover exhibits fluctuations, initially declining from 0.74 in 2019 to 0.66 in 2020, followed by a rise to a peak of 0.90 in 2022, and then declining again to 0.70 in 2023 before stabilizing at 0.71 in 2024. The adjusted total asset turnover follows a similar trajectory but with slightly higher values, suggesting adjustments improved the turnover ratios each year. This indicates variability in the efficiency of asset utilization over time, with the highest efficiency observed in 2022.

Current Ratio

Both reported and adjusted current ratios indicate an overall strengthening liquidity position from 2019 to 2024, increasing from approximately 1.88 to 2.4 (reported) and 2.00 to 2.47 (adjusted). Notably, the ratios dipped in 2021 and 2022 but then increased significantly, suggesting improved short-term asset coverage relative to liabilities in recent years.

Debt to Equity Ratio

The debt to equity ratio demonstrates a consistent downward trend from 2019 through 2024. Reported values dropped from 3.25 to 0.56, with adjusted figures also showing a similar decline from 2.94 to 0.71. This suggests a substantial reduction in leverage, pointing to a stronger equity base or debt reduction strategy implemented over the period.

Debt to Capital Ratio

There is a clear decline in the debt to capital ratio, decreasing from reported 0.76 in 2019 to 0.36 in 2024, mirrored closely by adjusted figures. This trend reinforces the observation of reduced reliance on debt financing and a more conservative capital structure over time.

Financial Leverage

A significant decrease is observed in the financial leverage ratios, reported leverage falling from 6.71 in 2019 to 2.10 in 2024, with adjusted figures declining similarly. This reduction supports the trend of deleveraging and suggests potentially lower financial risk and interest burden across the years analyzed.

Net Profit Margin

The reported net profit margin saw an upward trend from 18.07% in 2019 to a peak near 29.27% in 2022, followed by a decline to 20.19% in 2023 and a recovery to 26.03% in 2024. The adjusted net profit margin exhibits a less consistent pattern, with a peak at 28.27% in 2022 but sharper declines in subsequent years. Overall, profitability margins experienced volatility but remained strong throughout the period.

Return on Equity (ROE)

ROE demonstrated a strong but declining trend, with reported values falling sharply from 89.35% in 2019 to 33.51% in 2023 before a mild recovery to 38.60% in 2024. Adjusted ROE follows a similar pattern but generally reports higher peaks and lower troughs. The decline suggests diminishing effectiveness in generating returns from equity, potentially due to reduced leverage or changes in profitability components.

Return on Assets (ROA)

The return on assets shows an initial increase from 13.31% in 2019 to 26.39% in 2022, indicating improved asset profitability over these years. However, both reported and adjusted ROA declined afterward, reaching the lowest levels in 2023 and only partially recovering in 2024. This pattern indicates fluctuations in operational efficiency and asset utilization impacting overall returns.

Revenue Trends

Revenues exhibited variability over the analyzed periods, beginning at $24,273 million in 2019 and declining slightly to $23,531 million in 2020. A significant increase occurred in 2021, reaching $33,566 million, followed by a peak in 2022 at $44,200 million. Thereafter, revenues decreased to $35,820 million in 2023 but showed a modest recovery to $38,962 million in 2024.

Total Assets

Total assets demonstrated a consistent upward trend throughout the periods. Starting at $32,957 million in 2019, total assets rose steadily, reaching $55,154 million by 2024. This indicates ongoing asset growth, reflecting potential investments or acquisitions.

Reported Total Asset Turnover

The reported total asset turnover ratio fluctuated during the periods. It decreased from 0.74 in 2019 to 0.66 in 2020, improved notably to 0.81 in 2021 and further to 0.90 in 2022. The ratio then declined to 0.70 in 2023 and slightly increased to 0.71 in 2024. This pattern suggests efficiency in utilizing assets to generate revenues peaked in 2022 but diminished thereafter.

Adjusted Revenues

Adjusted revenues follow a similar trajectory to reported revenues but with slightly lower values. Starting at $23,878 million in 2019, they decreased marginally to $23,135 million in 2020, rose sharply to $33,213 million in 2021, and peaked at $43,737 million in 2022. Adjusted revenues then declined to $35,699 million in 2023, followed by an increase to $38,955 million in 2024.

Adjusted Total Assets

Adjusted total assets increased steadily from $32,115 million in 2019 to $49,992 million in 2024. The growth trend reflects enhanced asset base, slightly lower in magnitude compared to reported total assets but consistent in direction.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrored the reported ratio's pattern, starting at 0.74 in 2019, decreasing to 0.68 in 2020, rising to 0.84 in 2021, and peaking at 0.93 in 2022. The ratio then fell to 0.75 in 2023 and rose slightly to 0.78 in 2024. This suggests a similar cycle of asset utilization efficiency, with the highest efficiency recorded in 2022 followed by a reduction and slight recovery.

Summary Insights

Overall, the data reflects strong growth in total assets over the period, indicating expansion or increased investment in asset base. Revenues experienced fluctuations, with a notable peak in 2022, followed by a decrease and partial recovery. Asset turnover ratios indicate the highest efficiency in asset utilization occurred around 2022, with declining efficiency afterward, but a small rebound in the most recent year. These trends suggest that while the asset base grew, the company's ability to generate revenue per asset unit peaked and then faced some challenges in maintaining that level of efficiency.

The analysis of the annual financial data reveals several noteworthy trends in the liquidity position over the six-year period ending in 2024.

Current Assets

Current assets have exhibited consistent growth throughout the observed period. Starting at $16.8 billion in 2019, they increased steadily each year, reaching approximately $25.2 billion by 2024. This upward trend suggests an expanding asset base available to cover short-term obligations.

Current Liabilities

Current liabilities have shown a less consistent pattern. Initially decreasing slightly from $8.9 billion in 2019 to $8.7 billion in 2020, they then increased notably to $11.9 billion in 2021 and remained relatively stable around that level in 2022. Afterward, current liabilities declined to $9.6 billion in 2023 before rising again to $10.5 billion in 2024. This fluctuation indicates variability in the company's short-term obligations management.

Reported Current Ratio

The reported current ratio demonstrates significant variations over time. It peaked at 2.14 in 2020, declined to a low of 1.68 in 2021, then gradually increased to reach 2.40 in 2024. This ratio movement reflects shifts in the balance between current assets and liabilities, with the lowest liquidity position occurring in 2021 followed by recovery.

Adjusted Current Liabilities

Adjusted current liabilities mirror the general trend seen in reported current liabilities but at slightly lower levels, ranging from approximately $8.4 billion in 2019 to $10.2 billion in 2024. The adjustment likely accounts for certain refinements in liability measurement, yet the overall pattern of increase with some volatility remains consistent.

Adjusted Current Ratio

The adjusted current ratio follows a trend similar to the reported current ratio, starting at 2.0 in 2019, rising to a high of 2.29 in 2020, then dipping to 1.77 in 2021. It subsequently increased to 2.47 in 2024, indicating an improvement in liquidity over the latter years. The adjusted ratio consistently remains higher than the reported ratio, suggesting that the adjustments improve the assessment of liquidity position.

Overall, the liquidity position, as reflected by both reported and adjusted current ratios, shows resilience with temporary weakening around 2021 followed by a strengthening trend toward 2024. The steady growth in current assets supports an improved capacity to meet short-term liabilities despite fluctuations in those liabilities themselves.

Total Debt

Total debt shows a gradual decreasing trend over the six-year period. Beginning at $15,933 million in 2019, it decreased modestly each year to $14,634 million by 2024, indicating a steady reduction in the company’s outstanding liabilities.

Stockholders’ Equity

Stockholders’ equity exhibits a strong upward trend, reflecting significant growth in the company’s net assets. Starting at $4,909 million in 2019, it more than quintupled to $26,274 million by 2024, indicating enhanced retained earnings, increased capital infusion, or asset revaluation.

Reported Debt to Equity Ratio

The reported debt to equity ratio steadily declined from 3.25 in 2019 to 0.56 in 2024. This indicates a substantial improvement in the company’s financial leverage, shifting from a high reliance on debt financing toward a more equity-based capital structure, which might reduce financial risk.

Adjusted Total Debt

Adjusted total debt also presents a declining pattern, decreasing slightly from $16,287 million in 2019 to $15,440 million in 2024. The smaller reduction compared to reported total debt may reflect adjustments accounting for off-balance-sheet liabilities or other factors considered in adjusted figures.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity rose considerably from $5,541 million in 2019 to $21,611 million in 2024, mirroring the upward trend observed in the reported equity, albeit at slightly lower absolute values. This suggests positive underlying equity growth after adjustments.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased from 2.94 in 2019 to 0.71 in 2024, demonstrating a consistent improvement in the firm’s capital structure when considering adjusted financial measures. The trend confirms the company’s strategic emphasis on strengthening equity financing relative to debt.

Total Debt

The total debt demonstrates a consistent decline over the observed periods, decreasing from approximately 15,933 million US dollars in 2019 to 14,634 million US dollars in 2024. This represents a steady reduction in debt levels, suggesting a potential focus on deleveraging or improved debt management over time.

Total Capital

Total capital shows a notable upward trend, rising steadily from 20,842 million US dollars in 2019 to 40,908 million US dollars in 2024. This increase indicates significant growth in the company’s capital base, which may be attributed to retained earnings, equity issuance, or asset growth.

Reported Debt to Capital Ratio

The reported debt to capital ratio exhibits a clear downward trend, declining from 0.76 in 2019 to 0.36 in 2024. The reduction in this ratio suggests an improving capital structure, with debt constituting a smaller portion of the company’s capital. This trend aligns with the observed decreases in total debt and increases in total capital.

Adjusted Total Debt

Adjusted total debt follows a similar pattern to total debt, showing a slight decrease from 16,287 million US dollars in 2019 to 15,440 million US dollars in 2024. The adjusted figures remain consistently above the reported total debt, implying certain adjustments or inclusions in the debt measure that provide a more comprehensive view of liabilities.

Adjusted Total Capital

Adjusted total capital also increases steadily from 21,828 million US dollars in 2019 to 37,051 million US dollars in 2024. This trend mirrors that of total capital but reflects adjusted values that likely incorporate certain refinements or broader capital components, supporting the assessment of an expanding capital base.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio exhibits a decline from 0.75 to 0.42 over the observed period. Although slightly higher than the reported ratio, the adjusted ratio's downward movement confirms the trend toward reduced financial leverage and a stronger equity position within the company’s capital structure.

The financial data over the six-year period reveals several notable trends in the company's asset base, equity, and financial leverage.

Total Assets

Total assets have demonstrated a consistent upward trajectory, increasing from US$32,957 million in 2019 to US$55,154 million in 2024. This reflects a substantial growth in the asset base, with the most significant annual increments observed between 2020 and 2022.

Stockholders’ Equity

Stockholders’ equity has shown robust growth, rising from US$4,909 million in 2019 to US$26,274 million in 2024. The increase in equity is particularly pronounced from 2020 onwards, indicating enhanced capitalization and potentially retained earnings or issuance of new equity.

Reported Financial Leverage

The reported financial leverage ratio has steadily decreased from 6.71 in 2019 to 2.10 in 2024. This decline suggests a reduction in reliance on debt financing relative to equity, pointing to improved financial stability and lower leverage risk over time.

Adjusted Total Assets

Adjusted total assets have followed a growth pattern similar to total assets, increasing from US$32,115 million in 2019 to US$49,992 million in 2024. The growth rate appears slightly moderated compared to reported total assets, indicating adjustments that may account for valuation or reclassification differences.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity has increased from US$5,541 million in 2019 to US$21,611 million in 2024. Despite some fluctuations, the overall trend aligns with the growth observed in reported equity, confirming a strengthening equity position when adjustments are made.

Adjusted Financial Leverage

The adjusted financial leverage ratio shows a decline from 5.80 in 2019 to 2.31 in 2024. This trend mirrors the pattern seen in the reported leverage, reinforcing the observation of decreased leverage and an improved balance between debt and equity after adjustments.

Overall, the data portrays a company expanding its asset base and equity substantially while concurrently reducing its financial leverage. The consistent decrease in leverage ratios, both reported and adjusted, indicates a strategic move toward lower indebtedness and enhanced financial strength over the period analyzed.

The financial performance exhibits notable fluctuations over the analyzed periods, with varying trends in income, revenues, and profit margins.

Net Income and Revenues

Net income experienced a general upward trajectory from 2019 to 2022, peaking at 12,936 million USD, followed by a significant decline in 2023 to 7,232 million USD, before recovering to 10,142 million USD in 2024. Revenues show a similar pattern, increasing steadily to a high of 44,200 million USD in 2022, then decreasing in 2023 to 35,820 million USD, and modestly rising again in 2024 to 38,962 million USD. This indicates a peak financial performance in 2022, disrupted by a decline in the subsequent year, with signs of recovery in the most recent period.

Reported Net Profit Margin

The reported net profit margin improved consistently from 18.07% in 2019 to a peak of 29.27% in 2022, suggesting enhanced profitability efficiencies during this interval. However, the margin declined sharply in 2023 to 20.19%, then partially recovered to 26.03% in 2024. The trend mirrors the net income and revenue progression, reflecting challenges faced in 2023 with a rebound in profitability in the following year.

Adjusted Net Income and Revenues

Adjusted net income demonstrates more variability. It started at 5,814 million USD in 2019, decreased to 4,693 million USD in 2020, then increased steadily to 12,364 million USD in 2022. A significant downturn occurred in 2023, dropping to 5,972 million USD, followed by a modest increase to 8,444 million USD in 2024. Adjusted revenues follow a parallel pattern, peaking in 2022 at 43,737 million USD, decreasing in 2023, and increasing again in 2024. These adjusted figures align with the reported data, emphasizing the cyclical nature of the financial performance within this timeframe.

Adjusted Net Profit Margin

This margin started at 24.35% in 2019 but declined in 2020 to 20.29%. Afterward, it rose to 28.27% in 2022, then fell significantly to 16.73% in 2023, the lowest in the series, recovering partially to 21.68% in 2024. The adjusted margin appears more volatile than the reported margin, highlighting greater sensitivity in profitability when adjustments are considered, particularly the sharp drop in 2023 which is more pronounced.

In summary, the analysis reveals a strong growth phase culminating in 2022 across all financial metrics, followed by a considerable decline in 2023, possibly due to market, operational, or external factors impacting performance. The partial recovery in 2024 suggests stabilization efforts or improving market conditions. Profit margins, both reported and adjusted, exhibited fluctuations consistent with income and revenue trends, albeit with adjusted margins displaying higher volatility.

The financial data reveals distinct trends in profitability and equity for the analyzed periods.

Net Income

The net income shows a general upward trend from 2019 to 2022, increasing from 4,386 million to a peak of 12,936 million. However, this was followed by a significant decline in 2023 to 7,232 million, before partially recovering to 10,142 million in 2024.

Stockholders’ Equity

Stockholders’ equity steadily increased throughout the period, rising from 4,909 million in 2019 to 26,274 million in 2024. This represents a consistent growth in the company's equity base over time.

Reported ROE (Return on Equity)

Reported ROE started at a very high level of 89.35% in 2019 and remained elevated through 2021 (90.88%). From 2022 onward, ROE declined notably, dropping to 33.51% in 2023 with a slight increase to 38.6% in 2024. Despite the decline, ROE values in 2023 and 2024 are still above typical industry averages.

Adjusted Net Income

Adjusted net income followed a somewhat different pattern compared to the reported net income. It decreased from 5,814 million in 2019 to 4,693 million in 2020, then recovered strongly to 12,364 million in 2022. A sharp drop occurred in 2023, reducing adjusted net income to 5,972 million, before rebounding to 8,444 million in 2024.

Adjusted Stockholders’ Equity

Adjusted stockholders' equity showed a consistent growth trend, rising from 5,541 million in 2019 to 21,611 million in 2024. The growth trajectory is similar to that of the reported equity, reflecting increasing capitalization.

Adjusted ROE

Adjusted ROE mirrored the reported ROE trend with values decreasing over time. Starting at 104.93% in 2019, it dropped to 31.81% in 2023, followed by a slight increase to 39.07% in 2024. The downward trend suggests increasing equity relative to income generated or operational challenges impacting profitability.

Overall, the company experienced strong equity growth throughout the analyzed period, while profitability, as measured by both reported and adjusted net income and ROE, peaked around 2021-2022 before facing declines in 2023 and partial recoveries in 2024. The lowered ROE in later years, despite higher equity, may indicate changing operational efficiency or market conditions. The adjusted figures reaffirm the reported trends but show more variability in net income, possibly due to accounting adjustments or one-time items.

Net Income

The net income exhibited an overall upward trend from 2019 to 2024, rising from $4,386 million to $10,142 million. Notably, there was a significant increase in 2021 and 2022, peaking at $12,936 million in 2022 before declining to $7,232 million in 2023. This was followed by a recovery in 2024.

Total Assets

Total assets consistently increased throughout the period, growing from $32,957 million in 2019 to $55,154 million in 2024. The growth was steady, with increments each year, reflecting expansion or acquisition of assets over time.

Reported Return on Assets (ROA)

Reported ROA showed a pattern of improvement up to 2022, rising from 13.31% in 2019 to a high of 26.39% in 2022. However, it then dropped significantly to 14.17% in 2023 before recovering moderately to 18.39% in 2024. This suggests fluctuations in asset profitability, with peak efficiency in 2022 followed by volatility.

Adjusted Net Income

Adjusted net income followed a similar trajectory to net income but with differences in magnitude. It increased from $5,814 million in 2019 to a peak of $12,364 million in 2022. Post-2022, it declined sharply to $5,972 million in 2023 but partially rebounded to $8,444 million in 2024. The adjustments appear to smooth some fluctuations but highlight a significant dip in 2023.

Adjusted Total Assets

Adjusted total assets also revealed steady growth from $32,115 million in 2019 to $49,992 million in 2024, mirroring the trend seen in total assets but at slightly lower values. This indicates consistent asset base growth even when adjustment considerations are applied.

Adjusted Return on Assets (ROA)

Adjusted ROA rose initially from 18.10% in 2019 to 26.19% in 2022, reflecting increasing efficiency in asset utilization. However, it declined noticeably to 12.51% in 2023 before recovering to 16.89% in 2024, paralleling the fluctuations seen in the reported ROA and adjusted net income. This denotes a period of decreased profitability relative to asset base in 2023, followed by improvement.