Stock Analysis on Net
Stock Analysis on Net

AstraZeneca PLC (NYSE:AZN)

This company has been moved to the archive! The financial data has not been updated since March 10, 2015.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

AstraZeneca PLC, balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Product, marketing and distribution rights 31,899 25,553 22,862 15,899 15,804
Other intangibles 2,812 2,499 2,135 2,188 2,335
Software development costs 2,026 2,090 1,905 1,634 1,399
Intangible assets, cost 36,737 30,142 26,902 19,721 19,538
Accumulated amortisation and impairment losses (15,756) (14,095) (10,454) (8,741) (7,380)
Intangible assets, net book value 20,981 16,047 16,448 10,980 12,158
Goodwill 11,550 9,862 9,898 9,862 9,871
Goodwill and intangible assets 32,531 25,909 26,346 20,842 22,029

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Item Description The company
Intangible assets, net book value Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. AstraZeneca PLC intangible assets, net book value decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
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. AstraZeneca PLC goodwill decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
Goodwill and 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. AstraZeneca PLC goodwill and intangible assets decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

Adjustments to Financial Statements: Removal of Goodwill

AstraZeneca PLC, adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Adjustment to Total Assets
Total assets (as reported) 58,595 55,899 53,534 52,830 56,127
Less: Goodwill 11,550 9,862 9,898 9,862 9,871
Total assets (adjusted) 47,045 46,037 43,636 42,968 46,256
Adjustment to Capital And Reserves Attributable To Equity Holders Of The Company
Capital and reserves attributable to equity holders of the Company (as reported) 19,627 23,224 23,737 23,246 23,213
Less: Goodwill 11,550 9,862 9,898 9,862 9,871
Capital and reserves attributable to equity holders of the Company (adjusted) 8,077 13,362 13,839 13,384 13,342

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

AstraZeneca PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

AstraZeneca PLC, adjusted financial ratios

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Total Asset Turnover
Reported total asset turnover 0.45 0.46 0.52 0.64 0.59
Adjusted total asset turnover 0.55 0.56 0.64 0.78 0.72
Financial Leverage
Reported financial leverage 2.99 2.41 2.26 2.27 2.42
Adjusted financial leverage 5.82 3.45 3.15 3.21 3.47
Return on Equity (ROE)
Reported ROE 6.28% 11.01% 26.53% 42.95% 34.69%
Adjusted ROE 15.27% 19.13% 45.50% 74.59% 60.36%
Return on Assets (ROA)
Reported ROA 2.10% 4.57% 11.76% 18.90% 14.35%
Adjusted ROA 2.62% 5.55% 14.43% 23.23% 17.41%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. AstraZeneca PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.
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.		 AstraZeneca PLC adjusted financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. AstraZeneca PLC adjusted ROE deteriorated from 2012 to 2013 and from 2013 to 2014.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. AstraZeneca PLC adjusted ROA deteriorated from 2012 to 2013 and from 2013 to 2014.

AstraZeneca PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Revenue 26,095 25,711 27,973 33,591 33,269
Total assets 58,595 55,899 53,534 52,830 56,127
Activity Ratio
Total asset turnover1 0.45 0.46 0.52 0.64 0.59
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 26,095 25,711 27,973 33,591 33,269
Adjusted total assets 47,045 46,037 43,636 42,968 46,256
Activity Ratio
Adjusted total asset turnover2 0.55 0.56 0.64 0.78 0.72

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 26,095 ÷ 58,595 = 0.45

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 26,095 ÷ 47,045 = 0.55

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. AstraZeneca PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 and from 2013 to 2014.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Total assets 58,595 55,899 53,534 52,830 56,127
Capital and reserves attributable to equity holders of the Company 19,627 23,224 23,737 23,246 23,213
Solvency Ratio
Financial leverage1 2.99 2.41 2.26 2.27 2.42
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 47,045 46,037 43,636 42,968 46,256
Adjusted capital and reserves attributable to equity holders of the Company 8,077 13,362 13,839 13,384 13,342
Solvency Ratio
Adjusted financial leverage2 5.82 3.45 3.15 3.21 3.47

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Financial leverage = Total assets ÷ Capital and reserves attributable to equity holders of the Company
= 58,595 ÷ 19,627 = 2.99

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted capital and reserves attributable to equity holders of the Company
= 47,045 ÷ 8,077 = 5.82

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.		 AstraZeneca PLC adjusted financial leverage ratio increased from 2012 to 2013 and from 2013 to 2014.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to owners of the Parent 1,233 2,556 6,297 9,983 8,053
Capital and reserves attributable to equity holders of the Company 19,627 23,224 23,737 23,246 23,213
Profitability Ratio
ROE1 6.28% 11.01% 26.53% 42.95% 34.69%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Profit attributable to owners of the Parent 1,233 2,556 6,297 9,983 8,053
Adjusted capital and reserves attributable to equity holders of the Company 8,077 13,362 13,839 13,384 13,342
Profitability Ratio
Adjusted ROE2 15.27% 19.13% 45.50% 74.59% 60.36%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 ROE = 100 × Profit attributable to owners of the Parent ÷ Capital and reserves attributable to equity holders of the Company
= 100 × 1,233 ÷ 19,627 = 6.28%

2 Adjusted ROE = 100 × Profit attributable to owners of the Parent ÷ Adjusted capital and reserves attributable to equity holders of the Company
= 100 × 1,233 ÷ 8,077 = 15.27%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. AstraZeneca PLC adjusted ROE deteriorated from 2012 to 2013 and from 2013 to 2014.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Profit attributable to owners of the Parent 1,233 2,556 6,297 9,983 8,053
Total assets 58,595 55,899 53,534 52,830 56,127
Profitability Ratio
ROA1 2.10% 4.57% 11.76% 18.90% 14.35%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Profit attributable to owners of the Parent 1,233 2,556 6,297 9,983 8,053
Adjusted total assets 47,045 46,037 43,636 42,968 46,256
Profitability Ratio
Adjusted ROA2 2.62% 5.55% 14.43% 23.23% 17.41%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 ROA = 100 × Profit attributable to owners of the Parent ÷ Total assets
= 100 × 1,233 ÷ 58,595 = 2.10%

2 Adjusted ROA = 100 × Profit attributable to owners of the Parent ÷ Adjusted total assets
= 100 × 1,233 ÷ 47,045 = 2.62%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. AstraZeneca PLC adjusted ROA deteriorated from 2012 to 2013 and from 2013 to 2014.