Twenty-First Century Fox Inc. (NASDAQ:FOX)

The analysis of the reported and adjusted net income for the company over the six-year period reveals several noteworthy trends and fluctuations.

Reported Net Income

Reported net income displayed significant volatility. It started at $7,097 million in 2013, then experienced a sharp decline to $4,514 million in 2014. This was followed by a strong recovery and peak at $8,306 million in 2015. Subsequently, reported net income dropped markedly to $2,755 million in 2016, before slightly increasing in the following years to $2,952 million in 2017 and $4,464 million in 2018.

Adjusted Net Income

The adjusted net income closely mirrored the trend of reported net income throughout the period, suggesting that the adjustments made were relatively minor or consistent. Beginning at $7,052 million in 2013, adjusted net income declined to $4,385 million in 2014, rose significantly to $8,288 million in 2015, then fell steeply to $2,751 million in 2016. It remained stable at $2,952 million in 2017 and increased to $4,596 million in 2018.

Comparison and Insights

The alignment of reported and adjusted net incomes indicates that the core earnings pattern was stable after adjustments. The substantial peak in 2015, followed by a sharp fall in 2016, signifies a period of financial fluctuation, possibly due to extraordinary items or changes in the business environment. The gradual recovery from 2016 to 2018 reflects a positive trend in profitability resumption. Despite the volatility, the adjusted net income figures suggest a consistent methodology in earnings quality adjustments during this timeframe.

Net Profit Margin Trends

The reported net profit margin experienced significant fluctuations over the periods analyzed, starting at 25.64% in June 2013, declining sharply to 14.17% in June 2014, and then rising again to a peak of 28.65% in June 2015. Subsequently, the margin declined notably in 2016 to around 10%, maintaining a relatively stable but lower level through 2017 and 2018, with a slight increase to 14.68% in 2018. The adjusted net profit margin follows a closely similar trajectory, indicating consistency between reported and adjusted metrics.

Return on Equity (ROE) Trends

The reported ROE shows a strong initial value of 41.75% in June 2013, which declined to 25.92% in 2014 before recovering substantially to 48.23% in 2015. After this peak, ROE decreased markedly in 2016 to approximately 20%, followed by a slight downward trend reaching 18.78% in 2017, and a moderate rebounding to 22.82% in 2018. The adjusted ROE closely parallels this pattern, with minor differences suggesting adjustments have minimal impact on underlying equity returns.

Return on Assets (ROA) Trends

The reported ROA reflects a similar pattern to margin and ROE, beginning at 13.93% in 2013, dropping to 8.24% in 2014, and peaking at 16.60% in 2015. Thereafter, it fell sharply to around 5.7% in 2016 and remained relatively flat with a slight improvement to 8.29% by 2018. The adjusted ROA exhibits nearly identical values and trends, further corroborating the reported figures.

Overall Financial Performance Insights

Across the six-year period, the company experienced a marked volatility in profitability and efficiency indicators, with 2015 being a standout year of elevated performance across profit margin, ROE, and ROA. The subsequent years show a notable decline and stabilization at lower levels, possibly suggesting changes in operational effectiveness, market conditions, or capital structure. The close alignment between reported and adjusted figures suggests that non-recurring or extraordinary items had limited impact on the main profitability and performance metrics.

Net Income Trends

The reported net income attributable to stockholders experienced significant fluctuations over the analyzed period. Initially, net income was high in 2013 at 7,097 million US dollars, followed by a decline in 2014 to 4,514 million US dollars. In 2015, there was a strong recovery, with net income peaking at 8,306 million US dollars. After this peak, income dropped sharply in 2016 to 2,755 million US dollars and remained relatively low through 2017 and 2018, at 2,952 million and 4,464 million US dollars respectively. The adjusted net income follows a very similar pattern, with slight variations, indicating that adjustments made had limited impact on the overall earnings trend.

Profit Margin Analysis

The reported net profit margin mirrored the fluctuations seen in net income. It started at a high of 25.64% in 2013, decreased abruptly to 14.17% in 2014, then rose sharply to 28.65% in 2015. Following 2015, the margin dropped significantly to a low of approximately 10% in both 2016 and 2017, before recovering moderately to 14.68% in 2018. Adjusted net profit margins show a similar trend, with slightly lower margins in most years but closely aligned with the reported margins, suggesting that core profitability was consistent even after adjustments.

Overall Observations

The data indicates a volatile earnings performance over the six-year period, with notable income and margin peaks in 2013 and 2015, followed by a marked decline in subsequent years. The alignment of reported and adjusted figures throughout the period suggests that non-recurring items or accounting adjustments had minimal influence on the overall earnings trends. The company's profit margins demonstrate sensitivity to income changes, reflecting potential operational or market-related challenges affecting profitability during the latter half of the period. The slight improvement in 2018 may indicate emerging stabilization or recovery.

The analysis of the financial results over the six-year period reveals several noteworthy trends in profitability and return on equity (ROE) for the company.

Net Income Trends

Reported net income attributable to stockholders displayed significant fluctuations. It began strongly at 7,097 million USD in 2013, then declined sharply to 4,514 million USD in 2014, followed by a notable increase to 8,306 million USD in 2015. Afterwards, the net income dropped considerably in 2016 to 2,755 million USD, showing a modest recovery in the subsequent years reaching 4,464 million USD in 2018.

The adjusted net income closely mirrored the reported figures throughout the years, with minor deviations. It started at 7,052 million USD in 2013, decreased to 4,385 million USD in 2014, peaked at 8,288 million USD in 2015, then declined to 2,751 million USD in 2016, stabilizing around 2,952 million USD in 2017 and increasing to 4,596 million USD in 2018.

Return on Equity (ROE)

Both reported and adjusted ROE exhibited a similar pattern, reflecting the net income trends. Reported ROE was highest in 2015 at 48.23%, following a decline from 41.75% in 2013 to 25.92% in 2014. This was followed by a substantial decrease to 20.17% in 2016, with a further slight decrease to 18.78% in 2017 before a moderate recovery to 22.82% in 2018.

Adjusted ROE presents a comparable trajectory, beginning at 41.49% in 2013, decreasing to 25.18% in 2014, reaching a peak of 48.13% in 2015, then declining to 20.14% in 2016 and holding steady at 18.78% in 2017, before improving to 23.49% in 2018.

Overall Observations

The data portrays a volatile earnings environment with significant peaks and troughs in net income and ROE during the observed period. The highest profitability and return on equity were recorded in 2015, followed by a notable decline over the next year. The partial recovery in 2018 indicates some improvement, but levels remain below earlier peak performance.

The close alignment of reported and adjusted figures suggests limited impact from extraordinary or non-recurring items on the core earnings and profitability measures.

The financial data presents both reported and investment-adjusted figures for net income attributable to stockholders and the return on assets (ROA) for the periods from 2013 through 2018.

Net Income Attributable to Stockholders

The reported net income shows significant fluctuation across the years. Starting at $7,097 million in 2013, it experienced a decline to $4,514 million in 2014, followed by a sharp increase to $8,306 million in 2015. After this peak, net income dropped markedly in 2016 to $2,755 million and then showed a moderate rise to $2,952 million in 2017. In 2018, the figure increased again to $4,464 million.

The adjusted net income mirrors the trends of the reported figures closely, maintaining slightly lower values in the earlier years but surpassing the reported net income in 2018 with $4,596 million compared to $4,464 million. This suggests adjustments primarily impacted the later period positively, reflecting possible non-recurring or investment-related effects excluded from reported figures.

Return on Assets (ROA)

The reported ROA follows a pattern consistent with net income movements. It starts at a relatively high 13.93% in 2013, decreases to 8.24% in 2014, then considerably increases to 16.6% in 2015. Subsequently, it declines sharply to 5.7% in 2016 and remains fairly stable at approximately 5.82% in 2017, followed by a moderate improvement to 8.29% in 2018.

The adjusted ROA demonstrates a similar trajectory, beginning slightly lower than the reported ROA at 13.84% in 2013 and 8% in 2014, peaking close to the reported value at 16.56% in 2015, then decreasing to 5.69% in 2016. It remains steady at 5.82% in 2017 but surpasses the reported figure in 2018 with an increase to 8.54%, indicating a better underlying operational performance when excluding certain accounting or investment adjustments.

Overall, the company experienced considerable volatility in net income and ROA during the six-year period, with notable peaks in 2015 followed by declines in subsequent years. Adjusted figures provide a perspective that slightly smooths the volatility and generally show a marginally improved performance in 2018 relative to the reported data. This pattern indicates episodic impacts possibly related to extraordinary items or investment-related adjustments affecting profitability and asset utilization metrics.