Qualcomm Inc. (NASDAQ:QCOM)

An analysis of the financial ratios over the six-year period reveals distinct trends in asset utilization and equity efficiency.

Net fixed asset turnover

The ratio exhibits some volatility, initially declining from 7.88 in 2019 to 6.34 in 2020, then recovering to 8.55 in 2022. A decrease is observed again in 2023 to 7.1, followed by a rebound to 8.35 in 2024. This pattern suggests fluctuations in how effectively the company uses its fixed assets to generate revenue, with a tendency toward recovery after periods of decline.

Net fixed asset turnover including operating lease, right-of-use asset

This ratio follows a similar but somewhat lower trajectory compared to the standard net fixed asset turnover. Starting at 7.88 in 2019, the figure falls consistently to a low of 5.64 in 2020, with gradual improvements to 7.62 by 2022. It then declines to 6.34 in 2023 before increasing to 7.24 in 2024. This indicates that when accounting for operating leases and right-of-use assets, asset utilization efficiency is slightly diminished but generally aligns with the trend of recovery after dips.

Total asset turnover

The total asset turnover ratio shows initial weakness from 0.74 in 2019 down to 0.66 in 2020, followed by an upward trend peaking at 0.9 in 2022. However, there is a notable drop after 2022 to 0.7 in 2023, with minimal improvement to 0.71 in 2024. This suggests a peak in asset efficiency in 2022 with decreased effectiveness in subsequent years relative to total assets.

Equity turnover

Equity turnover demonstrates a consistent downward trend throughout the period, starting at 4.94 in 2019 and declining steadily each year to 1.48 in 2024. This continuous decline signals a decreasing rate at which the company generates revenue from shareholders’ equity, which may point to increasing equity levels not being matched by proportional revenue growth or potentially diminishing equity efficiency over time.

Overall, asset turnover ratios show periods of recovery after declines, suggesting fluctuations in asset utilization efficiency. In contrast, equity turnover presents a clear and persistent downward trend, indicating a reduction in the company's ability to generate revenue from its equity base over the analyzed timeframe.

Revenues

Revenues experienced fluctuations over the examined periods. Initially, there was a slight decline from 24,273 million USD in 2019 to 23,531 million USD in 2020. This was followed by a significant increase in 2021, reaching 33,566 million USD, and peaking in 2022 at 44,200 million USD. However, revenues declined again in 2023 to 35,820 million USD before recovering somewhat to 38,962 million USD in 2024. The overall trend indicates notable volatility with a strong peak in 2022 and partial recovery thereafter.

Property, plant and equipment, net

The net value of property, plant, and equipment increased steadily from 3,081 million USD in 2019 to a high of 5,168 million USD in 2022. However, this was followed by a slight decrease in the subsequent years, falling to 5,042 million USD in 2023 and further down to 4,665 million USD in 2024. The trend suggests initial expansion in fixed assets, potentially reflecting investment growth, followed by a modest reduction or depreciation after 2022.

Net fixed asset turnover

The net fixed asset turnover ratio exhibited variable behavior over the periods provided. It dropped from 7.88 in 2019 to 6.34 in 2020, then improved to 7.36 in 2021. A peak was observed in 2022 at 8.55, indicating enhanced efficiency in utilizing fixed assets to generate revenue during that year. The ratio decreased to 7.1 in 2023 but rose again to 8.35 in 2024, suggesting recovery in asset utilization efficiency after the dip in 2023.

The financial data presents a multi-year view of key financial metrics, highlighting trends in revenues, property assets, and asset utilization efficiency.

Revenues

Revenues initially demonstrate a slight decline from 24,273 million US dollars in 2019 to 23,531 million in 2020. This is followed by a substantial increase to 33,566 million in 2021, and further growth to a peak of 44,200 million in 2022. However, this peak is succeeded by a significant decrease in 2023 to 35,820 million, with a moderate recovery to 38,962 million in 2024. Overall, despite fluctuations, revenues show a general upward trajectory across the six-year period, with notable volatility especially between 2022 and 2024.

Property, Plant, and Equipment, Net (including operating lease, right-of-use asset)

The net value of property, plant, and equipment exhibits steady growth from 3,081 million in 2019, rising through consecutive years to a high of 5,799 million in 2022. After this peak, there is a slight decline in the subsequent years, ending at 5,384 million in 2024. The general trend indicates consistent investment in fixed assets, reaching a maximum point in 2022, followed by mild asset reduction or revaluation.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

The net fixed asset turnover ratio reflects asset utilization efficiency. Starting at a strong 7.88 in 2019, it declines markedly to 5.64 in 2020, suggesting reduced efficiency in revenue generation relative to fixed assets. The ratio then recovers to 6.62 in 2021 and experiences further improvement to 7.62 in 2022, near the initial high. This is followed by a dip to 6.34 in 2023 before rebounding again to 7.24 in 2024. These fluctuations correspond closely with changes in revenue and asset values, indicating that operational efficiency varies in tandem with asset investments and revenue generation.

The analysis of the financial data indicates several noteworthy trends in the company's operational and financial performance over the six-year period.

Revenues

Revenues demonstrated fluctuation throughout the observed timeframe. Initially, revenues slightly declined from US$24,273 million in 2019 to US$23,531 million in 2020. This was followed by a significant increase to US$33,566 million in 2021 and further growth to US$44,200 million in 2022, representing a peak in the series. Subsequently, revenues declined to US$35,820 million in 2023 but partially recovered to US$38,962 million in 2024. Overall, there was growth in revenues from 2019 to 2024, albeit with notable volatility.

Total Assets

Total assets showed a consistent upward trend across the entire period. The asset base grew from US$32,957 million in 2019 to US$55,154 million by 2024. This steady increase reflects continuous investment or accumulation of assets, contributing to the company’s expanded resource base.

Total Asset Turnover

Total asset turnover, which measures the efficiency in using assets to generate revenues, fluctuated during the period. It started at 0.74 in 2019, dropped to 0.66 in 2020, then improved sharply to 0.81 in 2021 and peaked at 0.90 in 2022. However, it declined afterward to 0.70 in 2023 and slightly increased to 0.71 in 2024. These changes mirror the revenue and asset movements, indicating periods of higher efficiency in 2021-2022 and reduced efficiency in the following years.

In summary, while the company expanded its asset base substantially, revenue growth experienced volatility with a peak in 2022. The efficiency of asset utilization peaked correspondingly in 2022 but declined thereafter, suggesting that the increased asset base in recent years was not fully leveraged to generate proportional revenue growth. The trends point to potential areas for improving asset use efficiency to drive higher revenue growth in the future.

The financial data reveals several noteworthy trends over the six-year period ending in 2024. Revenues displayed a general upward trajectory with a significant peak and subsequent fluctuation. Starting at $24,273 million in 2019, revenues experienced a slight decline in 2020, followed by a strong increase in 2021 and 2022, reaching a high of $44,200 million. However, in 2023, revenues decreased to $35,820 million, before recovering somewhat to $38,962 million in 2024.

Stockholders’ equity showed consistent and substantial growth throughout the period. Beginning at $4,909 million in 2019, equity increased each year, accelerating notably after 2020. By 2024, stockholders’ equity had risen to $26,274 million, more than a fivefold increase from the 2019 level, indicating strengthening financial stability and capital base expansion.

Equity turnover ratio exhibited a clear declining trend across the years. From 4.94 in 2019, the ratio steadily decreased each year to 1.48 in 2024. This downward trend suggests that the company's revenues generation relative to equity is diminishing, which may indicate either increased capital investment or slower revenue growth in relation to equity levels.

Revenues

Overall increase with a peak in 2022, followed by a decrease in 2023 and partial recovery in 2024.

Stockholders’ Equity

Continuous and significant growth, suggesting improvement in financial strength and capital accumulation.

Equity Turnover Ratio

Consistent decline, reflecting reduced efficiency in using equity to generate revenues.