Stock Analysis on Net
Stock Analysis on Net

Anadarko Petroleum Corp. (NYSE:APC)

This company has been moved to the archive! The financial data has not been updated since October 31, 2017.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Anadarko Petroleum Corp., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Other intangible assets, gross carrying amount 1,013 1,013 1,037 229 229
Accumulated amortization (109) (77) (44) (59) (41)
Other intangible assets, net carrying amount 904 936 993 170 188
Goodwill 5,000 5,395 5,576 5,492 5,492
Goodwill and other intangible assets 5,904 6,331 6,569 5,662 5,680

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Anadarko Petroleum Corp. goodwill decreased from 2014 to 2015 and from 2015 to 2016.
Goodwill and other intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Anadarko Petroleum Corp. goodwill and other intangible assets decreased from 2014 to 2015 and from 2015 to 2016.

Adjustments to Financial Statements: Removal of Goodwill

Anadarko Petroleum Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Adjustment to Total Assets
Total assets (as reported) 45,564 46,414 61,689 55,781 52,589
Less: Goodwill 5,000 5,395 5,576 5,492 5,492
Total assets (adjusted) 40,564 41,019 56,113 50,289 47,097
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 12,212 12,819 19,725 21,857 20,629
Less: Goodwill 5,000 5,395 5,576 5,492 5,492
Stockholders’ equity (adjusted) 7,212 7,424 14,149 16,365 15,137

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Anadarko Petroleum Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Anadarko Petroleum Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
Total Asset Turnover
Reported total asset turnover 0.19 0.20 0.27 0.27 0.25
Adjusted total asset turnover 0.21 0.23 0.29 0.30 0.28
Financial Leverage
Reported financial leverage 3.73 3.62 3.13 2.55 2.55
Adjusted financial leverage 5.62 5.53 3.97 3.07 3.11
Return on Equity (ROE)
Reported ROE -25.15% -52.20% -8.87% 3.66% 11.59%
Adjusted ROE -42.58% -90.14% -12.37% 4.89% 15.80%
Return on Assets (ROA)
Reported ROA -6.74% -14.42% -2.84% 1.44% 4.55%
Adjusted ROA -7.57% -16.31% -3.12% 1.59% 5.08%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Anadarko Petroleum Corp. adjusted total asset turnover ratio deteriorated from 2014 to 2015 and from 2015 to 2016.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Anadarko Petroleum Corp. adjusted financial leverage ratio increased from 2014 to 2015 and from 2015 to 2016.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Anadarko Petroleum Corp. adjusted ROE deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Anadarko Petroleum Corp. adjusted ROA deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.

Anadarko Petroleum Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Sales revenues 8,447 9,486 16,375 14,867 13,307
Total assets 45,564 46,414 61,689 55,781 52,589
Activity Ratio
Total asset turnover1 0.19 0.20 0.27 0.27 0.25
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales revenues 8,447 9,486 16,375 14,867 13,307
Adjusted total assets 40,564 41,019 56,113 50,289 47,097
Activity Ratio
Adjusted total asset turnover2 0.21 0.23 0.29 0.30 0.28

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 Total asset turnover = Sales revenues ÷ Total assets
= 8,447 ÷ 45,564 = 0.19

2 Adjusted total asset turnover = Sales revenues ÷ Adjusted total assets
= 8,447 ÷ 40,564 = 0.21

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Anadarko Petroleum Corp. adjusted total asset turnover ratio deteriorated from 2014 to 2015 and from 2015 to 2016.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Total assets 45,564 46,414 61,689 55,781 52,589
Stockholders’ equity 12,212 12,819 19,725 21,857 20,629
Solvency Ratio
Financial leverage1 3.73 3.62 3.13 2.55 2.55
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 40,564 41,019 56,113 50,289 47,097
Adjusted stockholders’ equity 7,212 7,424 14,149 16,365 15,137
Solvency Ratio
Adjusted financial leverage2 5.62 5.53 3.97 3.07 3.11

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 45,564 ÷ 12,212 = 3.73

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 40,564 ÷ 7,212 = 5.62

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Anadarko Petroleum Corp. adjusted financial leverage ratio increased from 2014 to 2015 and from 2015 to 2016.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders (3,071) (6,692) (1,750) 801 2,391
Stockholders’ equity 12,212 12,819 19,725 21,857 20,629
Profitability Ratio
ROE1 -25.15% -52.20% -8.87% 3.66% 11.59%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders (3,071) (6,692) (1,750) 801 2,391
Adjusted stockholders’ equity 7,212 7,424 14,149 16,365 15,137
Profitability Ratio
Adjusted ROE2 -42.58% -90.14% -12.37% 4.89% 15.80%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 ROE = 100 × Net income (loss) attributable to common stockholders ÷ Stockholders’ equity
= 100 × -3,071 ÷ 12,212 = -25.15%

2 Adjusted ROE = 100 × Net income (loss) attributable to common stockholders ÷ Adjusted stockholders’ equity
= 100 × -3,071 ÷ 7,212 = -42.58%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Anadarko Petroleum Corp. adjusted ROE deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders (3,071) (6,692) (1,750) 801 2,391
Total assets 45,564 46,414 61,689 55,781 52,589
Profitability Ratio
ROA1 -6.74% -14.42% -2.84% 1.44% 4.55%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income (loss) attributable to common stockholders (3,071) (6,692) (1,750) 801 2,391
Adjusted total assets 40,564 41,019 56,113 50,289 47,097
Profitability Ratio
Adjusted ROA2 -7.57% -16.31% -3.12% 1.59% 5.08%

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

2016 Calculations

1 ROA = 100 × Net income (loss) attributable to common stockholders ÷ Total assets
= 100 × -3,071 ÷ 45,564 = -6.74%

2 Adjusted ROA = 100 × Net income (loss) attributable to common stockholders ÷ Adjusted total assets
= 100 × -3,071 ÷ 40,564 = -7.57%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Anadarko Petroleum Corp. adjusted ROA deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level.