Common-Size Income Statement
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Reportable Segments
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Operating Profit Margin since 2005
- Analysis of Debt
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EMC Corp., common-size consolidated income statement
Based on: 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), 10-K (reporting date: 2011-12-31).
- Revenue Composition
- Over the analyzed period, a noticeable shift occurred in the revenue mix, with product sales declining as a percentage of total revenues from 62.93% in 2011 to 54.7% in 2015. Conversely, the services component increased steadily from 37.07% to 45.3%, reflecting a gradual strategic emphasis or market trend favoring services.
- Cost Structure
- The cost of product sales relative to revenues decreased from -26.59% to -23.51%, indicating improved efficiency or cost control in product segments. However, the cost of services increased from -12.59% to -15.8%, which may suggest rising expenses associated with the expanding services business. Overall, the total cost of revenues remained relatively stable but with a slight increase from -39.18% in 2011 to -39.32% in 2015, reflecting these contrasting cost dynamics.
- Profitability Metrics
- Gross profit margin showed fluctuations but exhibited a general decline towards the end of the period, falling from 60.82% in 2011 to 60.68% in 2015 after peaking around 62.81% in 2012. This decline corresponds with the rising service costs and changes in revenue mix. Operating income as a percentage of revenues decreased significantly from 17.21% to 11.5%, driven by increasing operating expenses and restructuring costs.
- Operating Expenses and Charges
- Research and development expenses as a percentage of revenues increased steadily from -10.74% to -12.82%, indicating increased investment in innovation or product development. Selling, general and administrative expenses also showed an upward trend, rising from -32.38% to -34.54%, suggesting higher overhead or sales-related expenditures. Restructuring and acquisition-related charges nearly quadrupled, from -0.49% to -1.82%, reflecting increased costs potentially related to organizational changes or acquisitions.
- Non-Operating Items
- Investment income decreased from 0.65% to 0.38%, indicating reduced returns or scaling back of investments. Interest expense remained relatively low and stable between -0.85% and -0.66%. Other income (expense), net, showed a recovery from negative figures in earlier years to a small positive of 0.45% in 2015. Consequently, total non-operating income (expense) improved from a consistent negative range to a slight positive value in 2015, which may have aided overall profitability.
- Income and Taxes
- Income before tax decreased from 16.24% to 11.67%, reflecting the combined effects of lower operating income and mixed non-operating results. The income tax provision as a percentage of revenues fluctuated but slightly decreased from -3.2% to -2.87%, possibly due to changes in tax rates or tax planning strategies. Net income displayed a notable decline from 13.04% in 2011 to 8.79% in 2015, further highlighting reduced profitability.
- Attribution of Net Income
- Net income attributable to non-controlling interests remained relatively stable around -0.74%, indicating consistent minority interests. Net income attributable to the company decreased from 12.3% to 8.06%, mirroring the overall net income trend and underscoring a decline in earnings available to shareholders.