AmerisourceBergen Corp. (NYSE:ABC)

The analysis of the financial data reveals several notable trends within the intangible assets over the six-year period.

Goodwill

Goodwill exhibited a steady increase from 2017 to 2021, rising from approximately 6.04 billion to 9.03 billion USD, followed by a slight decrease to 8.50 billion USD in 2022. This pattern suggests significant acquisitions or revaluations until 2021 with some downward adjustment thereafter.

Indefinite-lived trade names

Values of indefinite-lived trade names remained relatively stable, fluctuating marginally around 685 million USD from 2017 through 2020, then slightly declining to approximately 667 million USD by 2022, indicating a consistent valuation with minor impairments or adjustments.

Customer relationships

Customer relationships showed variable movement. After an increase from about 2.33 billion USD in 2017 to 2.55 billion USD in 2018, there was a marked decline in subsequent years reaching approximately 1.67 billion USD in 2020. However, a significant surge occurred in 2021 to nearly 4.84 billion USD, followed by a moderate decrease in 2022 to 4.23 billion USD. This suggests periods of both amortization impact and new acquisitions or revaluations.

Trade names and other

The trade names and other intangible assets category rose from approximately 325 million USD in 2017 to 398 million USD in 2018, then declined to about 210 million USD by 2020. A substantial increase occurred in 2021, reaching over 609 million USD, with a subsequent decrease to roughly 542 million USD in 2022. These fluctuations align with acquisition activities and asset revaluations.

Finite-lived assets and related amortization

The gross carrying amount of finite-lived intangible assets increased notably from 2.66 billion USD in 2017 to nearly 5.45 billion USD in 2021, before slightly decreasing to 4.77 billion USD in 2022. Accumulated amortization grew steadily in absolute terms, from approximately 507 million USD in 2017 to 1.10 billion USD in 2022, indicating ongoing amortization expenses against these assets. The net carrying amount showed an initial decline from 2.15 billion USD in 2017 to 1.20 billion USD in 2020, followed by a sharp increase to 4.59 billion USD in 2021 and a reduction to 3.66 billion USD in 2022. This pattern suggests significant additions or capitalizations impacting the net asset base, alongside ongoing amortization.

Other intangible assets and total intangible assets

Other intangible assets mirrored the trend of finite-lived net carrying amounts, declining from roughly 2.83 billion USD in 2017 to 1.89 billion USD in 2020, then rising sharply to 5.26 billion USD in 2021 before decreasing to 4.33 billion USD in 2022. Consequently, the combined net value of goodwill and other intangible assets increased from roughly 8.88 billion USD in 2017 to a peak of 14.29 billion USD in 2021, before a consolidation to 12.84 billion USD in 2022. This reflects significant acquisition activity in 2021, followed by partial asset adjustments in 2022.

Overall, the data indicate a period characterized by substantial acquisition and capital investment activity around 2021, leading to sharp increases in goodwill and intangible assets. The subsequent year shows a degree of correction or rationalization in asset values. Amortization of finite-lived assets continues steadily, impacting net asset values but is overshadowed by acquisition-related fluctuations.

The financial data reveals several notable trends over the period from 2017 to 2022. The reported total assets demonstrate a generally upward trajectory, increasing consistently from approximately 35.3 billion US dollars in 2017 to a peak near 57.3 billion US dollars in 2021, followed by a slight decline to about 56.6 billion US dollars in 2022. Similarly, the adjusted total assets, which likely exclude goodwill or other intangible assets, show steady growth from roughly 29.3 billion US dollars in 2017 to 48.3 billion US dollars in 2021, with a minor decrease to 48.1 billion US dollars in 2022.

Analyzing equity positions, the reported total AmerisourceBergen Corporation stockholders’ equity exhibits volatility across the years. Equity increased from about 2.1 billion US dollars in 2017 to a peak of approximately 2.9 billion US dollars in 2018, then experienced a slight decline in 2019, and turned negative in 2020 with a deficit of nearly 1.0 billion US dollars. This negative trend continued with minor recovery to positive 223 million US dollars in 2021, only to revert back to a deficit of roughly 212 million US dollars in 2022. The adjusted stockholders’ equity, reflecting adjustments possibly related to goodwill impairments or other accounting treatments, consistently remains negative throughout the period, deepening from a deficit of approximately 4.0 billion US dollars in 2017 to a peak negative value near 8.8 billion US dollars in 2021, slightly improving to a deficit of around 8.7 billion US dollars in 2022. This persistent negative adjusted equity indicates considerable intangible assets or revaluations affecting the equity base.

Regarding profitability, the reported net income attributable to the corporation fluctuates substantially over the years. Starting with net income of approximately 364 million US dollars in 2017, it surged significantly to nearly 1.7 billion US dollars in 2018, then declined to 855 million US dollars in 2019. A substantial loss of about 3.4 billion US dollars occurred in 2020, followed by a recovery to profits exceeding 1.5 billion US dollars in 2021 and around 1.7 billion US dollars in 2022. The adjusted net income closely follows reported net income figures, with minor differences beginning in 2018 and continuing through 2022, indicating slight adjustments in income recognition or expense classification. Importantly, both measures show the same loss in 2020 and similar patterns of recovery subsequently.

Overall, the data illustrate growth in asset base until 2021 with a slight contraction thereafter, volatility in reported equity with pervasive negative adjusted equity, and significant fluctuations in profitability, including a major loss in 2020 followed by a strong rebound. These patterns suggest that the company experienced considerable operational and accounting impacts during this period, notably in 2020, with improving profitability while facing challenges in maintaining positive adjusted equity levels.

The financial data presents notable fluctuations and trends across various profitability and efficiency metrics over the period from 2017 to 2022.

Net Profit Margin

Both reported and adjusted net profit margins exhibited relatively low and volatile values. The margins increased from 0.24% in 2017 to just under 1.0% in 2018, before falling back to around 0.48% in 2019. There was a significant decline in 2020, turning negative at approximately -1.8%, likely indicative of extraordinary or adverse business conditions. Margins then recovered modestly, returning to just over 0.7% by 2021 and 2022, with adjusted margins slightly higher than reported figures.

Total Asset Turnover

The asset turnover ratios, both reported and adjusted, generally decreased over the observed period. Reported turnover started around 4.34 in 2017, peaking slightly at 4.58 in 2019 before dropping to 3.73 in 2021, and partially recovering to 4.22 in 2022. Adjusted turnover showed a similar pattern but at consistently higher levels, beginning at 5.23 in 2017, peaking at 5.53 in 2019, declining notably in 2021 to 4.43, and rebounding to 4.96 in 2022. This trend suggests a temporary reduction in asset efficiency around 2020-2021 with subsequent improvement.

Financial Leverage

Reported financial leverage ratios present incomplete data with a significant anomaly noted in 2021, where the ratio skyrocketed to 256.71 from earlier values between approximately 12.8 and 17.1. This extreme increase is likely due to unusual one-time events or adjustments in the balance sheet affecting liabilities or equity. The absence of adjusted leverage data limits further analysis on a normalized basis.

Return on Equity (ROE)

The reported ROE showed a high degree of volatility, with a peak at 56.55% in 2018 and a substantial decline thereafter, becoming unavailable for several years before an extraordinary spike to 689.46% in 2021. The extreme increase aligns temporally with the spike in financial leverage, indicating that leverage likely amplified ROE significantly. Lack of adjusted ROE data constrains the ability to assess sustainable profitability.

Return on Assets (ROA)

Both reported and adjusted ROA followed similar trajectories with marked volatility. Initial increases from 1.03% to over 4% in 2018 were followed by declines in 2019 and a pronounced negative dip in 2020 (around -7.7% reported and -9.07% adjusted), showing a period of asset inefficiency or losses. Recovery ensued in 2021 and 2022, with adjusted ROA displaying somewhat stronger recovery compared to reported figures, reaching up to 3.69% in 2022.

In summary, the data reflects a period of instability marked by sharp declines in profitability and asset efficiency around 2020, likely related to external challenges or internal restructuring. Subsequently, there is evidence of gradual recovery in margins and returns, although high volatility, particularly in leverage and ROE, suggests significant episodic financial events. The adjusted metrics generally outperform reported figures, suggesting that goodwill adjustments positively impact perceived profitability and efficiency.

Over the analyzed periods, the reported net income attributable to AmerisourceBergen Corporation exhibits significant volatility. Starting from approximately 364 million USD in 2017, there is a sharp increase to about 1.66 billion USD in 2018, followed by a decline to 855 million USD in 2019. The year 2020 marks a notable negative turnaround with a loss of around 3.41 billion USD. Recovery begins in 2021 with net income returning to positive territory at roughly 1.54 billion USD, continuing with a slight increase to approximately 1.70 billion USD in 2022.

The adjusted net income follows a similar pattern, closely aligned with the reported figures but showing slightly higher values for the years 2018, 2021, and 2022. This suggests that adjustments made, possibly related to goodwill or other non-recurring items, slightly enhance the net income in these years. In 2020, both reported and adjusted figures reflect the substantial loss, indicating a major adverse event during that period.

The reported net profit margin mirrors the net income trend, beginning at 0.24% in 2017, peaking at 0.99% in 2018, then declining to 0.48% in 2019. The margin turns negative in 2020 at -1.8%, which corresponds with the large net loss recorded. This negative margin is subsequently reversed to a positive 0.72% in 2021 and remains relatively stable at 0.71% in 2022.

The adjusted net profit margin presents a nearly identical pattern to the reported margin, with marginally higher values in 2018, 2021, and 2022. This reinforces the observation that the adjustments have a minor positive impact on profitability margins during profitable years, but do not influence the negative outcome in 2020.

Overall, the data reveals a period of strong profitability growth from 2017 through 2018, followed by a decline in 2019 and a substantial downturn in 2020. The subsequent two years show recovery toward stable profitability levels, with both reported and adjusted figures closely aligned except for small uplifts from adjustments in certain years. The dramatic loss and negative margins in 2020 stand out as a significant anomaly within the timeframe analyzed.

Asset Base Growth

The reported total assets exhibited a consistent upward trend from 2017 to 2021, increasing from approximately 35.3 billion to 57.3 billion US dollars before slightly declining to 56.6 billion in 2022. Similarly, the adjusted total assets rose steadily from about 29.3 billion in 2017 to 48.3 billion in 2021, followed by a minor decrease to 48.1 billion in 2022. This pattern indicates considerable asset growth over the period, with a peak occurring in 2021 for both reported and adjusted figures.

Total Asset Turnover Trends

Reported total asset turnover showed an increase from 4.34 in 2017 to a high of 4.58 in 2019, followed by a decline to 3.73 in 2021 and a partial recovery to 4.22 in 2022. Adjusted total asset turnover followed a similar trajectory, rising from 5.23 in 2017 to 5.53 in 2019, then decreasing to 4.43 in 2021 with a rebound to 4.96 in 2022. The turnover ratios indicate improved efficiency in asset utilization up to 2019, a downturn in 2020 and 2021, potentially linked to external factors, and a recovery in 2022.

Comparison Between Reported and Adjusted Metrics

Adjusted total assets consistently registered lower values than reported total assets, reflecting goodwill adjustments. Correspondingly, adjusted total asset turnover ratios were consistently higher than reported ratios across all years, signaling better efficiency when excluding goodwill from asset calculations. The pattern suggests that goodwill has a dilutive effect on asset turnover measures, and that the company operates more efficiently on a tangible asset basis.

Overall Insights

The analysis reveals steady asset growth with a peak around 2021 and a slight contraction thereafter. Asset utilization efficiency improved until 2019 but experienced a temporary decline that partially reversed in 2022. The disparity between reported and adjusted figures highlights the significance of goodwill in the asset base and underscores the importance of analyzing adjusted metrics for a clearer view of operational efficiency. The observed trends may reflect broader economic conditions impacting asset deployment and turnover efficiency in recent years.

The data displays significant fluctuating trends in both reported and goodwill-adjusted financial metrics over the annual periods from 2017 through 2022.

Total Assets

Reported total assets show a generally increasing trajectory from 35.3 billion USD in 2017, rising steadily each year to a peak of 57.3 billion USD in 2021 before experiencing a slight decline to 56.6 billion USD in 2022. This indicates substantial growth in asset base over the period with a minor contraction towards the end.

Adjusted total assets, which exclude goodwill and other intangible adjustments, follow a similar upward trend from 29.3 billion USD in 2017 to 48.3 billion USD in 2021, then decline slightly to 48.1 billion USD in 2022. The adjustment narrows the asset base by approximately 19-20% each year, indicating significant goodwill or intangible assets carried on the balance sheet.

Stockholders’ Equity

Reported stockholders' equity displays a more volatile pattern. It grows from approximately 2.1 billion USD in 2017 to a high of 2.9 billion USD in 2018, then slightly declines to 2.9 billion USD in 2019. A sharp reversal occurs in 2020 with equity turning negative at roughly -1.0 billion USD, indicating a deficit position. It rebounds back to positive territory in 2021 at 223 million USD but slips negative again in 2022 to about -212 million USD. This volatility suggests financial distress or significant write-downs impacting shareholders’ value.

The adjusted stockholders' equity consistently remains negative throughout all periods, starting from approximately -4.0 billion USD in 2017 and worsening to around -8.7 billion USD by 2022. This persistent deficit when excluding goodwill indicates that the company’s tangible equity is substantially negative, implying liabilities exceed tangible assets, and emphasizing that goodwill is the main driver of reported equity figures.

Financial Leverage

Reported financial leverage ratio data are incomplete; however, the available points suggest a decrease from 17.11 in 2017 to 12.84 in 2018 followed by a small increase to 13.61 in 2019. A dramatic spike is noted in 2021 reaching 256.71, which correlates with the reported near-zero equity figure in that year. This sharp increase indicates extremely high leverage, reflecting high reliance on liabilities relative to equity. The absence of values for 2020 and 2022 limits further definitive conclusions on leverage trends.

No adjusted leverage ratios are provided, limiting ability to assess leverage excluding goodwill effects.

Overall, the trends highlight growth in assets but with considerable volatility and weakness in equity positions, particularly when adjusted for goodwill. The persistence of negative adjusted equity suggests structural financial challenges potentially related to overvaluation of intangible assets or high debt loads. The surge in financial leverage in 2021 further underscores concerns regarding capital structure and risk exposure during the period.

The financial data for the periods under review exhibit notable fluctuations in key profitability and equity measures.

Net Income (Loss) Attributable to AmerisourceBergen Corporation

The reported net income showed significant volatility over the analyzed years. Beginning at approximately $364 million in 2017, the company experienced a marked increase in 2018 to about $1.66 billion. The figure then declined to roughly $855 million in 2019 before a substantial loss of approximately $3.41 billion occurred in 2020. Recovery was observed subsequently with net income returning to positive figures, around $1.54 billion in 2021 and incrementally higher at about $1.70 billion in 2022.

The adjusted net income trend followed a similar pattern to the reported figures, suggesting that goodwill adjustments had minimal impact on the overall profitability trends. The adjustment slightly increased net income values in 2018, 2021, and 2022 compared to the reported numbers, indicating some positive adjustment effects in these years.

Total Stockholders’ Equity (Deficit)

The reported stockholders’ equity demonstrated a steady increase from roughly $2.06 billion in 2017 to nearly $2.93 billion in 2018, remaining relatively stable in 2019 at just under $2.88 billion. A dramatic deterioration occurred in 2020, where equity plunged to a deficit of approximately $1.02 billion, recovering partially to $223 million in 2021 but slipping back into a deficit of about $212 million in 2022.

Adjusted stockholders’ equity presented a very different picture, showing persistent and growing deficits throughout the period. Beginning at a deficit of about $3.98 billion in 2017, the negative equity position moderately improved but remained deep, oscillating near $3.7 to $3.8 billion deficits through 2018 and 2019. This deficit worsened considerably from 2020 onward, reaching nearly $7.7 billion in 2020 and further declining to around $8.7 billion deficits by 2021 and 2022, indicating substantial negative adjustments potentially linked to goodwill impairments or other accounting factors.

Return on Equity (ROE)

The reported ROE showed a generally strong performance during 2017 through 2019, rising from about 17.7% in 2017 to a peak of 56.6% in 2018, then declining to 29.7% in 2019. There are no ROE values reported for 2020 and 2022, likely due to negative equity positions or losses in these periods. A notably high ROE of 689.5% was recorded for 2021, which is indicative of an abnormally low or negative equity base combined with positive net income, thus inflating the metric.

Adjusted ROE values were not provided, precluding detailed comparison or assessment of the influence of adjustments on equity efficiency measures.

Overall, the data illustrate a period of substantial financial instability, highlighted by a severe loss and equity deficit in 2020, followed by partial recovery. The adjusted equity figures reveal an underlying impairment of equity value, pointing to significant goodwill or intangible asset write-downs affecting the company's net asset base over multiple years.

Net Income (Loss) Trends

Reported net income shows significant volatility over the reported periods. After a strong increase from 364,484 thousand USD in 2017 to 1,658,405 thousand USD in 2018, the net income declined sharply to 855,365 thousand USD in 2019. The year 2020 experienced a substantial loss of 3,408,716 thousand USD, marking a notable downturn. Recovery is evident in the subsequent years, with reported net income rising to 1,539,932 thousand USD in 2021 and further increasing to 1,698,820 thousand USD in 2022.

Adjusted net income reflects a similar pattern but with slightly higher values in 2018, 2021, and 2022 compared to the reported figures, indicating some adjustments positively affecting the income figures. The loss in 2020 remains consistent in magnitude.

Total Assets Trends

Reported total assets demonstrate a general upward trajectory from 35,316,470 thousand USD in 2017 to a peak of 57,337,805 thousand USD in 2021, followed by a slight decrease to 56,560,616 thousand USD in 2022. This indicates notable asset growth over the analyzed period, particularly between 2020 and 2021.

Adjusted total assets follow the same general trend but remain consistently lower than the reported totals, with 29,272,189 thousand USD in 2017 rising to 48,307,274 thousand USD by 2021, and a modest decline to 48,056,730 thousand USD in 2022. This suggests that adjustments, likely related to goodwill, have a significant impact on asset valuation but do not alter the overall upward trend.

Return on Assets (ROA) Trends

The reported ROA shows a fluctuating pattern, increasing from 1.03% in 2017 to 4.4% in 2018, declining to 2.18% in 2019, before turning negative at -7.7% in 2020. It recovers to positive levels in 2021 at 2.69% and further improves to 3.0% in 2022. This fluctuation corresponds with the trends observed in net income, demonstrating the sensitivity of profitability to income changes.

Adjusted ROA percentages are consistently higher than the reported figures across all years, beginning at 1.25% in 2017, peaking at 5.54% in 2018, and hitting a low of -9.07% in 2020. The recovery in 2021 and 2022 to 3.2% and 3.69%, respectively, mirrors the pattern seen in reported ROA but indicates more favorable profitability when adjustments are accounted for.

General Insights

The financial data reveals considerable earnings volatility, with a pronounced loss in 2020 that significantly affected profitability and returns. Both total assets and adjusted total assets expanded substantially over the period, signaling growth in the company's asset base despite the temporary earnings setback. The consistently higher adjusted profitability and asset values suggest that non-GAAP adjustments, possibly goodwill-related, have a material impact on financial metrics, providing a more favorable view of company performance and efficiency.