Air Products & Chemicals Inc. (NYSE:APD)

Current Tax Provision

The current tax provision exhibits considerable fluctuation over the observed period. It increased from 413,000 thousand US dollars in 2015 to a peak of 579,700 thousand in 2018, which indicates a substantial rise in current tax expenses during this timeframe. Subsequently, it declined to 422,500 thousand in 2019 and further decreased to 313,400 thousand in 2020. This trend suggests variability in the company's taxable income or adjustments in tax rates or policies affecting the current tax liabilities.

Deferred Tax Provision

The deferred tax provision shows greater volatility compared to the current tax provision. It started at a minor positive value of 2,900 thousand in 2015, surged sharply to 62,900 thousand in 2016, then moved into negative territory in 2017 (-38,000 thousand) and 2018 (-55,400 thousand). In 2019, it reversed to a positive 57,600 thousand and surged further to 165,000 thousand in 2020. This pattern indicates significant fluctuations in deferred tax liabilities or assets, likely due to changes in temporary differences between accounting income and taxable income, or the recognition of deferred tax assets and liabilities influenced by business operations or regulatory changes.

Income Tax Provision

The total income tax provision, combining current and deferred taxes, follows a pattern reflecting the fluctuations in its components. It increased from 415,900 thousand in 2015 to a peak of 586,500 thousand in 2016, then declined sharply to 260,900 thousand in 2017. After rebounding to 524,300 thousand in 2018, it decreased to 480,100 thousand in 2019 and stabilized somewhat at 478,400 thousand in 2020. This trend suggests that the overall tax expense is influenced heavily by changes in both current tax payable and deferred tax adjustments, with notable volatility during the midpoint years (2016-2018), potentially linked to operational changes or tax planning strategies.

U.S. federal statutory tax rate

The U.S. federal statutory tax rate remained stable at 35% from 2015 through 2017. It then declined sharply to 24.5% in 2018, followed by a further decrease to 21% in 2019 and remained at that level in 2020. This trend reflects a significant tax policy change during this period.

State taxes, net of federal benefit

State taxes as a percentage of income were relatively steady between 1% and 1.1% from 2015 to 2019, with a reduction to 0.6% in 2020, indicating lowered state tax impact.

Income from equity affiliates

This item consistently presented a negative contribution, ranging from -3% in 2015 to around -2% to -2.3% in subsequent years, showing a slightly declining negative impact over time.

Foreign tax differentials

Foreign tax differentials showed a fluctuating pattern, initially having a negative effect between -6.6% and -7.9% from 2015 to 2017, then sharply reversing to a minimal negative effect in 2018 and moving to a small positive contribution in 2019 and 2020, indicating changing global tax environments or strategies.

Tax on foreign repatriated earnings

This item was negative from 2015 through 2017, between -1.6% and -2.3%, but turned positive gradually in 2018 to 0.9% in 2020, suggesting a reduced tax burden or benefits related to repatriated earnings.

Share-based compensation

Share-based compensation effects were first reported in 2017 with a negative impact of -1.2%, then fluctuated slightly to -0.6% and -0.8% in 2019 and 2020 respectively, indicating consistent but relatively small deductions.

Tax restructuring benefit

A notable tax restructuring benefit appeared only in 2018, reducing the effective tax by -1.8%, with no further reported impacts in other years.

Domestic production activities

This factor showed a small but declining negative impact from -0.9% in 2015 to zero by 2019 and 2020, indicating diminishing benefits or deductions related to domestic production activities over time.

Non-deductible goodwill impairment charge

This charge was observed only in 2017, elevating the tax rate by 3.6%, suggesting a one-time non-deductible charge increasing taxable income in that year.

Non-U.S. subsidiary tax election

The non-U.S. subsidiary tax election had a significant negative impact of -7.7% in 2017 but was not reported in other years, indicating a one-time tax election effect that lowered the tax rate substantially that year.

Business separation costs

Business separation costs added to the effective tax rate by 3.1% in 2016 and 0.2% in 2017, then ceased to have an impact, pointing to temporary costs affecting taxes during these years.

Other

Other tax-related items fluctuated mildly over the years, from near zero to small positive and negative values, without a clear trend.

Effective tax rate, before tax reform

The effective tax rate before tax reform showed variability, starting at 24% in 2015, rising to 27.5% in 2016, then declining to 18.4% in 2017 and slightly further to 17.6% in 2018. It increased again to 19.1% in 2019 and 19.7% in 2020, indicating moderate fluctuations with an overall downward shift compared to earlier years.

Tax reform repatriation

Significant additional taxes attributed to tax reform repatriation appeared as 19.5% in 2018 and 1.9% in 2019, indicating a substantial one-time tax effect related to changes in repatriation policies during those years.

Tax reform rate change and other

Tax reform rate change and other effects were recorded as a -11.1% adjustment in 2018 only, significantly lowering the effective tax rate that year, which reflects major tax reform impacts.

Effective tax rate

The overall effective tax rate mirrored the influences described above. It was 24% in 2015, peaked at 27.5% in 2016, dropped substantially to 18.4% in 2017, then increased sharply to 26% in 2018 due largely to tax reform repatriation effects. The rate subsequently declined to 21% in 2019 and further to 19.7% in 2020, reflecting a stabilization post-tax reform with the new lower statutory tax rate.

The financial data reveals several noteworthy trends in the company's deferred tax assets, liabilities, and related components over the six-year period ending September 30, 2020.

Retirement benefits and compensation accruals

This item shows a fluctuating but overall declining trend from a high of $537.9 million in 2016 to $209 million in 2020. After peaking in 2016, there was a significant drop in 2017 and continued lower levels afterward, indicating a reduction in related accruals during the latter years.

Tax loss carryforwards

These decreased steadily from $116.7 million in 2015 to $64.5 million in 2017, then experienced a rebound to $143.5 million in 2018. However, a slight decline followed, ending at $112.6 million in 2020. The pattern suggests variability in tax loss positions, with some recovery post-2017.

Tax credits and other tax carryforwards

The values increased from $43.8 million in 2015 to a peak of $76.1 million in 2017, then dropped sharply to $17.1 million in 2018. Subsequent years showed modest increases, reaching $40.3 million in 2020. This indicates volatility with an initial growth phase, a steep decline, and partial recovery.

Reserves and accruals

There was an upward trend from $71.9 million in 2015 to $88.2 million in 2017, followed by a steep fall to $42.5 million in 2018. A partial recovery occurred in 2019 ($69.6 million) and slight stabilization in 2020 ($67 million).

Currency gains and losses

Currency losses appeared intermittently with $20.7 million in 2017, dipping in other years but spiking again to $30.4 million in 2020. Currency gains were negative across observed years, with the highest negative value at $65.7 million in 2015, decreasing gradually over time and absent in some periods.

Gross deferred tax assets

These assets showed a peak at $817.6 million in 2016, followed by a sharp decline to $405.4 million in 2018. There was a recovery to $526.1 million in 2019, but a slight decline to $523.9 million in 2020. Overall, this reflects significant volatility in asset recognition.

Valuation allowance

The allowance fluctuated between $103.6 million (2015) and $155.2 million (2016), before generally decreasing to $92.1 million in 2019 and slightly increasing again to $95 million in 2020. These changes suggest adjustments reflecting expected realizability of deferred tax assets.

Net deferred tax assets

Net assets decreased from $654.8 million in 2015 to a low of $300.4 million in 2018, followed by recovery to $434 million in 2019, then a marginal decline to $428.9 million in 2020. This pattern corresponds closely with gross assets and valuation allowance movements.

Plant and equipment

This liability item shows a decreasing absolute value from $1.125 billion (negative) in 2015 to a low of $811.8 million in 2018, then increased negatively again to $1.1109 billion in 2020, indicating fluctuations in capital asset-related deferred tax liabilities.

Unremitted earnings of foreign entities

These liabilities displayed significant variability, with a minor negative balance of $5.4 million in 2016 surrounded by larger negative figures ranging from $20.9 million to $58.7 million in other years. Overall, the data implies increased foreign earnings-related liabilities in 2020.

Intangible assets

Negative values declined from $135.6 million in 2015 to $81.9 million in 2017 and then remained relatively stable in the $80 million range through 2020, suggesting amortization or write-down of intangible asset-related deferred tax liabilities.

Deferred tax liabilities overall

The total deferred tax liabilities decreased from $1.3755 billion in 2015 to $954.1 million in 2018, then increased again to $1.2764 billion in 2020. This indicates variability in tax obligations over the period with a trough around 2018.

Net deferred income tax asset (liability)

The net position was negative throughout, worsening from -$720.7 million in 2015 to -$847.5 million in 2020, indicating the deferred tax liabilities consistently exceed the deferred tax assets, with the gap growing over time, particularly after 2018.

In summary, deferred tax asset components exhibited volatility with notable declines mid-period and some recovery toward the end. Deferred tax liabilities followed a similar pattern but remained higher in absolute terms than assets, resulting in a growing net liability position. Fluctuations in retirement benefits accruals, tax carryforwards, and currency-related items indicate variable exposures to changes in tax planning, foreign operations, and financial assumptions. The negative net deferred tax liability increasing over time may suggest rising future tax obligations or diminished realizable tax benefits.

The financial data reveals notable trends in the company's deferred tax assets and liabilities over the six-year period ending in 2020.

Current Deferred Tax Assets

Information is only available for the year ending September 30, 2015, with a reported balance of 117,200 thousand US dollars. No subsequent data is provided for further analysis.

Noncurrent Deferred Tax Assets

Starting from 69,000 thousand US dollars in 2015, the noncurrent deferred tax assets sharply increased to 192,700 thousand in 2016. Following this peak, a consistent decline occurred through 2020, decreasing to 115,100 thousand US dollars. This trend indicates a reduction in long-term deferred tax assets, suggesting possible changes in tax planning or asset valuation.

Current Deferred Tax Liabilities

Reported only in 2015 with a value of 3,600 thousand US dollars, with no data for subsequent years to identify trends or changes.

Noncurrent Deferred Tax Liabilities

The noncurrent deferred tax liabilities started at a high level of 903,300 thousand US dollars in 2015, followed by a steady decline reaching 767,100 thousand in 2016. From 2017 to 2019, the liabilities remained relatively stable around the 775,000 to 794,000 thousand range. In 2020, there was a significant increase to 962,600 thousand US dollars, the highest value in the observed period. This increase may reflect changes in deferred tax obligations due to tax rate changes, asset revaluation, or adjustments in deferred tax positions.

Overall, the data shows a fluctuating pattern in noncurrent deferred tax assets with a peak in 2016 followed by a steady decline, whereas noncurrent deferred tax liabilities exhibited an initial decline and stability before a considerable increase in the final year. Current deferred tax asset and liability data are limited to 2015, restricting the ability to analyze short-term deferred tax trends comprehensively.

The financial data for the periods ending from 2015 through 2020 reveals several notable trends in the company's assets, liabilities, equity, and income, both in reported and adjusted terms.

Current Assets

Reported current assets showed a general upward trajectory, increasing from approximately $2.91 billion in 2015 to $8.68 billion in 2020, with a peak in 2017 and a dip in 2019 before the substantial rise in 2020. Adjusted current assets closely mirror the reported values, with only a slight difference in 2015, indicating minimal adjustments in this category over time.

Total Assets

Total assets, both reported and adjusted, steadily increased over the period, growing from about $17.4 billion in 2015 to approximately $25.2 billion (reported) and $25.1 billion (adjusted) in 2020. The growth exhibits a consistent pattern with minor fluctuations, showing the company's expanding asset base.

Current Liabilities

Current liabilities have generally declined from around $3.65 billion (reported) in 2015 to approximately $2.42 billion in 2020, indicating improved short-term obligations management. The adjusted figures are nearly identical to reported values, confirming negligible adjustments for the current liabilities.

Total Liabilities

Reported total liabilities initially increased from about $10.06 billion in 2015 to $10.84 billion in 2016 but then decreased significantly to $7.55 billion by 2019. However, there was a sharp increase in 2020 to roughly $12.73 billion. Adjusted total liabilities follow a similar trend but at consistently lower levels compared to reported figures, suggesting that some liabilities have been adjusted downward over time, notably in 2020.

Shareholders’ Equity

The reported total shareholders' equity showed a mild decrease from 2015 ($7.25 billion) to 2016 ($7.08 billion), followed by a strong increase through 2019 reaching $11.05 billion and continuing up to $12.08 billion in 2020. Adjusted equity figures exceed the reported values each year, with steady growth from $7.97 billion in 2015 to $12.93 billion in 2020. This suggests recorded equity was enhanced by deferred income tax adjustments.

Net Income Attributable to Air Products

Reported net income shows considerable volatility, dropping sharply from $1.28 billion in 2015 to $631 million in 2016, then surging to $3.00 billion in 2017 before declining again to $1.49 billion in 2018 and gradually increasing to $1.89 billion by 2020. Adjusted net income exhibits a similar pattern but with less dramatic fluctuations, indicating that deferred tax adjustments smooth the reported earnings volatility somewhat, especially visible in 2016 and 2020.

Overall, the data suggests consistent asset growth, a substantial reduction in current liabilities over time, and an eventual increase in total liabilities in 2020. Equity has steadily increased, with adjusted figures consistently higher than reported ones, reflecting the impact of deferred income tax adjustments. Net income is marked by volatility but shows improved stability when adjusted for deferred taxes, underscoring the importance of these adjustments to purely reported financial outcomes.

The analysis of the financial ratios over the six-year period reveals several noteworthy trends and patterns. There is a close alignment between reported and adjusted figures, indicating limited impact from deferred income tax adjustments on the primary financial metrics.

Liquidity (Current Ratio)

The reported current ratio shows a substantial improvement from 0.8 in 2015 to 3.59 in 2020, indicating a marked enhancement in the company’s short-term liquidity position. The adjusted current ratio mirrors this trend exactly, starting at 0.77 and rising steadily in line with the reported figure. This suggests growing capability to meet short-term obligations over time.

Profitability (Net Profit Margin)

The reported net profit margin experienced pronounced volatility, starting at 12.91% in 2015, dipping to 6.63% in 2016, then surging to 36.65% in 2017, before stabilizing between approximately 16% and 23% in subsequent years. The adjusted net profit margin follows a similar trajectory but generally remains slightly higher, ending at 23.17% in 2020 compared to 21.3% reported. This reflects fluctuating yet improving profitability with minor upward adjustments due to tax considerations.

Efficiency (Total Asset Turnover)

There is a declining trend in total asset turnover from 0.57 in 2015 to 0.35 in 2020, suggesting a gradual reduction in how effectively the company uses its assets to generate revenues. The adjusted turnover ratios closely align with reported figures, showing negligible discrepancies.

Leverage (Financial Leverage Ratio)

The reported financial leverage decreased sharply from 2.41 in 2015 to a low of 1.71 in 2019, signaling reduced reliance on debt. However, it increased again to 2.08 in 2020. The adjusted leverage ratios follow the same pattern but are consistently lower, ranging from 2.16 in 2015 to 1.94 in 2020. This indicates that deferred tax adjustments slightly reduce the calculated leverage, but overall leverage trends remain consistent.

Return on Equity (ROE)

Reported ROE exhibits volatility, starting at 17.63% in 2015, plunging to 8.91% in 2016, peaking at 29.75% in 2017, and then stabilizing around 15%-16% in the last three years. Adjusted ROE follows a similar pattern with marginally lower values in some years but slightly higher in 2020. This suggests that deferred tax effects slightly modify equity returns but maintain overall trend integrity.

Return on Assets (ROA)

Reported ROA mirrors the ROE pattern, with a significant dip from 7.33% in 2015 to 3.5% in 2016, followed by a peak at 16.25% in 2017 before declining and stabilizing between 7.5% and 9.65%. Adjusted ROA values are consistently close but slightly elevated in the last years, highlighting modest positive adjustments due to tax considerations.

In summary, the financial data reflects improved liquidity and generally volatile but strong profitability and returns in 2017, followed by stabilization. Asset efficiency has declined steadily, while leverage reduced for much of the period before increasing in 2020. Adjustments for deferred income taxes have a modest impact, slightly improving adjusted profitability and reducing leverage metrics, but do not alter the overall trend directions significantly.

Current Assets

Current assets experienced a significant increase from 2,910,800 thousand US dollars in 2015 to 8,684,900 thousand US dollars in 2020. This growth was not linear; after a steady rise to 5,876,700 thousand in 2017, the value declined in 2018 and 2019 before sharply increasing in 2020. The adjusted current assets closely mirror the reported values, differing only slightly in 2015.

Current Liabilities

Current liabilities showed a clear decreasing trend from 3,648,100 thousand US dollars in 2015 down to 1,820,900 thousand by 2019, followed by a moderate increase to 2,416,700 thousand in 2020. Adjusted current liabilities are nearly identical to reported figures, with very minor discrepancies in 2015.

Current Ratio

The reported current ratio improved markedly over the period, starting at 0.8 in 2015 and reaching 3.59 in 2020. This increase indicates strengthening liquidity, as current assets increasingly exceeded current liabilities. The ratio fluctuated somewhat between 2017 and 2019 but maintained an overall upward trajectory. Adjusted current ratio values are consistent with reported ratios for all years.

Reported Net Income

The reported net income attributable to the company showed significant fluctuations over the examined period. Starting at approximately 1.28 billion USD in 2015, it dropped sharply to around 631 million USD in 2016. In 2017, there was a marked increase, reaching over 3 billion USD, followed by a decrease to approximately 1.5 billion USD in 2018. Subsequently, the net income rose steadily to 1.76 billion USD in 2019 and further to nearly 1.89 billion USD in 2020.

Adjusted Net Income

The adjusted net income exhibited a similar fluctuating trend with some differences in magnitude. It began slightly above 1.28 billion USD in 2015, decreased to 694 million USD in 2016, and surged close to 3 billion USD in 2017. Thereafter, it slightly declined to 1.44 billion USD in 2018, before increasing to 1.82 billion USD in 2019 and reaching a peak of about 2.05 billion USD in 2020.

Reported Net Profit Margin

The reported net profit margin mirrored the income fluctuations with notable variations. Initially, it was 12.91% in 2015, then it substantially declined to 6.63% in 2016. A sharp rise occurred in 2017, pushing the margin to 36.65%. This was followed by a decline to 16.77% in 2018, before increasing to nearly 20% in 2019 and further to 21.3% in 2020.

Adjusted Net Profit Margin

The adjusted net profit margin closely followed the trend of the reported margin. Starting at 12.94% in 2015, it improved to 7.29% in 2016, then spiked to 36.18% in 2017. After a decline to 16.15% in 2018, it increased to 20.38% in 2019, and further to 23.17% in 2020, showing a consistent upward trajectory in the latter years.

Summary of Trends and Insights

The financial performance over the six-year period reveals volatility, with a pronounced dip in both reported and adjusted figures in 2016 followed by a significant peak in 2017. After this peak, both net income and profit margins decreased sharply in 2018 but resumed a general upward trend through 2019 and 2020. Adjusted figures are consistently higher than reported values in later years, reflecting the impact of deferred income tax adjustments and other factors. Overall, the improvement in adjusted net profit margin in the last two years indicates enhanced profitability when these adjustments are taken into account.

The financial data shows trends in both reported and adjusted figures for total assets and total asset turnover over a six-year period ending in 2020.

Total Assets

Reported total assets exhibit a steady increase from approximately 17.44 billion US dollars in 2015 to 25.17 billion US dollars in 2020.

Adjusted total assets follow a similar trajectory, rising from about 17.25 billion US dollars in 2015 to 25.05 billion US dollars in 2020.

The growth between 2019 and 2020 is particularly notable, with reported assets increasing by over 6 billion US dollars and adjusted assets showing a very close magnitude of increase.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios demonstrate a declining trend over the six years.

Starting at 0.57 in 2015, the ratios gradually decrease, reaching 0.35 in 2020.

This decline indicates a reduction in the efficiency with which the company is utilizing its assets to generate revenue, particularly significant in the final year.

The adjusted total asset turnover closely mirrors the reported ratios, suggesting minimal impact from the adjustments made for reported and deferred income taxes.

Overall, the data reflects substantial growth in asset base accompanied by a reduction in asset turnover efficiency, potentially signaling challenges in generating proportional revenue relative to asset expansion during this period.

Assets

Both reported and adjusted total assets show a general increasing trend over the six-year period. Reported total assets increased from approximately $17.44 billion in 2015 to $25.17 billion in 2020, reflecting significant asset growth. Adjusted total assets also grew steadily from about $17.25 billion to $25.05 billion during the same period. The growth was gradual until 2019, with a more pronounced increase observed in 2020.

Shareholders’ Equity

Reported total Air Products shareholders’ equity demonstrates a general upward trend, rising from about $7.25 billion in 2015 to $12.08 billion in 2020. There was a notable jump between 2016 and 2017, followed by consistent growth through 2020. Adjusted shareholders’ equity values are consistently higher than reported figures, starting from roughly $7.97 billion in 2015 and increasing to $12.93 billion in 2020. The adjusted equity also shows a steady rise with a similar pattern of growth as the reported figures, indicating adjustments increase recognized equity but maintain the growth trend.

Financial Leverage

Both reported and adjusted financial leverage ratios exhibit a general downward trend from 2015 to 2019, suggesting a reduction in reliance on debt or improved equity financing during this period. Reported leverage declines from 2.41 in 2015 to 1.71 in 2019, while adjusted leverage decreases from 2.16 to 1.60 in the same period. However, in 2020, both leverage measures increase noticeably; reported leverage rises to 2.08 and adjusted leverage to 1.94. This reversal indicates a relative increase in debt or decrease in equity proportion during that year despite the growth in asset and equity balances.

Insights

The data implies that the company has strengthened its asset base and equity position over time, with adjusted figures typically reflecting higher equity values than reported numbers, potentially due to tax-related adjustments. The reduction in financial leverage up to 2019 may reflect a strategic effort to optimize capital structure by increasing equity or reducing debt. The uptick in leverage in 2020 suggests a shift perhaps related to operational or strategic financing decisions under changing economic conditions. Overall, the financial adjustments concerning reported and deferred income taxes have a consistent impact across years while maintaining the underlying trends in financial health.

Net Income Trends

The reported net income attributable to the company demonstrates considerable fluctuation over the analyzed period. It initially declined sharply from approximately $1.28 billion in 2015 to about $631 million in 2016, followed by a significant rebound to $3 billion in 2017. This was succeeded by another drop to around $1.5 billion in 2018, with gradual increases thereafter, reaching close to $1.89 billion by 2020.

The adjusted net income mostly follows the pattern of the reported figures, albeit with slight variations. The adjusted figures show a less volatile decline between 2015 and 2016 and generally slightly higher values than the reported net income in most years, culminating in an adjusted net income of approximately $2.05 billion in 2020.

Shareholders’ Equity Analysis

The reported total shareholders’ equity displays a gradual upward trend across the period, rising from about $7.25 billion in 2015 to nearly $12.08 billion in 2020. A moderate decline is visible between 2015 and 2016; however, equity levels increase steadily thereafter.

Adjusted shareholders’ equity shows a similar pattern, starting from a higher base at approximately $7.97 billion in 2015. Despite a slight dip in 2016, it consistently increases, reaching close to $12.93 billion in 2020, indicating possible adjustments that enhance equity levels compared to reported figures.

Return on Equity (ROE) Dynamics

Reported ROE fluctuates significantly, starting from 17.63% in 2015, dipping to 8.91% in 2016, then peaking sharply at 29.75% in 2017 before declining again to the range of approximately 13.8% to 15.92% between 2018 and 2019. By 2020, it settles around 15.62%.

Adjusted ROE mirrors the reported trend with slight moderation in percentage points. It moves from 16.07% in 2015 down to 9.07% in 2016, peaks at 27.71% in 2017, and then stabilizes within a narrower band from 12.53% to 15.87% in the final years. The adjusted ROE values slightly outperform reported metrics toward the end of the period.

Summary and Insight

The financial data reveal significant volatility in net income and ROE especially around 2016 and 2017, indicative of external or internal factors influencing profitability in those years. Shareholders’ equity, on the other hand, shows a consistent upward progression, suggesting strengthening of the equity base over time. The adjustment to income and equity data generally results in higher net income and equity values, as well as marginally improved returns on equity, which may imply the adjustments are aimed at normalizing reported figures for better comparative or analytical usability.

The financial data reveals several notable trends over the six-year period ending September 30, 2020. Both reported and adjusted net income attributable to Air Products demonstrate significant fluctuations. In 2016, net income declined sharply compared to 2015, followed by a strong rebound peak in 2017. Subsequent years saw net income fluctuate moderately but remained above the levels reported in 2015 and 2016, with a general upward trend continuing through 2020.

Total assets, on both a reported and adjusted basis, exhibit a steady increase from 2015 to 2019, with a marked acceleration in growth in 2020. The increase in total assets from 2019 to 2020 is particularly significant, suggesting possible expansion or acquisition activity during this period.

Return on assets (ROA), both reported and adjusted, follows a pattern consistent with the net income trends but shows more volatility. The lowest ROA values occur in 2016, corresponding to the dip in net income, while the highest occur in 2017, aligning with the peak net income year. After the peak, ROA declines in 2018 and makes moderate recoveries in the following years but does not return to the 2017 peak. Adjusted ROA consistently exceeds reported ROA, indicating that adjustments made typically improve the profitability measure relative to assets employed.

Net Income Trends

Sharp decline in 2016, strong recovery and peak in 2017, followed by moderate growth through 2020.

Adjusted net income shows a similar pattern but generally higher values than reported figures, especially in 2016 and 2020.

Total Assets Trends

Consistent growth from 2015 to 2019, with an extraordinary increase in 2020, suggesting significant expansion.

Adjusted assets closely mirror reported assets but remain slightly lower throughout the period.

Return on Assets (ROA)

Lowest in 2016, peaking in 2017, followed by a decline and moderate recovery through 2020.

Adjusted ROA is consistently higher than reported ROA, implying that adjustments positively impact the profitability ratio.