EMC Corp. (NYSE:EMC)

The annual financial data presents a view of current assets and adjusted current assets over a five-year period ending in 2015. The amounts are expressed in millions of US dollars.

Current Assets

There is an overall increase in current assets from 11,583 million in 2011 to a peak of 17,278 million in 2013, reflecting a substantial growth during the first three years. However, subsequent years show a decline, with current assets decreasing to 15,733 million in 2014 and further to 15,063 million in 2015. This suggests a period of asset accumulation followed by a reduction or reallocation of short-term assets towards the latter part of the timeframe.

Adjusted Current Assets

The adjusted current assets follow a similar pattern, starting at 10,911 million in 2011, increasing to 16,428 million by the end of 2013. After this peak, there is a decrease to 14,735 million in 2014, with a slight rebound to 15,153 million in 2015. This pattern indicates a cautious adjustment to current assets, possibly reflecting refined valuation or adjustments for less liquid asset components.

Trend Comparison and Insights

Both current assets and adjusted current assets exhibit a rising trend through 2013, followed by declines, though adjusted current assets demonstrate a relatively smaller drop and modest recovery in 2015. This indicates that while reported current assets decreased, the adjusted figures suggest some stabilization towards the end of the period. The early increase could be attributed to business expansion or improved working capital management, while the later decrease may indicate asset optimization or shifts in operational strategy.

The analysis of the financial data indicates a consistent upward trend in both total assets and adjusted total assets over the five-year period ending December 31, 2015.

Total Assets

Total assets increased from US$34,268 million at the end of 2011 to US$46,612 million by the end of 2015. This reflects a steady growth in asset base, with the most pronounced increase observed between 2012 and 2013. Between 2011 and 2012, total assets rose by approximately 11%. The subsequent year saw a sharper increase nearing 20%, followed by stabilization in growth in 2014 and 2015 with marginal increases of around 0.08% and 1.55%, respectively.

Adjusted Total Assets

Adjusted total assets mirrored the trend of total assets, rising from US$34,742 million in 2011 to US$47,326 million in 2015. This line item also exhibited the largest growth between 2012 and 2013, increasing by about 20.5%. Growth moderated noticeably in the following years, with increases of roughly 0.43% from 2013 to 2014 and 1.95% from 2014 to 2015. The adjusted total assets consistently exceeded the reported total assets each year, which may reflect adjustments for factors such as asset revaluations or adjustments for more precise measurement.

Overall, the data suggests a stable expansion in the asset base, with a possible emphasis on maintaining asset quality or adjusting asset valuations as reflected in the adjusted total assets. The sharp growth between 2012 and 2013 could indicate significant investment or acquisitions during that period, while subsequent years suggest a phase of consolidation and steady incremental growth.

The analysis of the presented financial data reveals the following trends and insights related to the company's liabilities over the five-year period ending December 31, 2015.

Current Liabilities

Current liabilities showed a fluctuating yet generally upward trend over the years. Beginning at 10,376 million US dollars at the end of 2011, the figure slightly decreased to 10,304 million in 2012. Subsequently, there was a significant increase in 2013 to 11,799 million. This peak was followed by a minor reduction to 11,710 million in 2014, and then a notable rise to 12,885 million in 2015, marking the highest point in the observed period. Overall, current liabilities increased by approximately 24.2% from 2011 to 2015.

Adjusted Current Liabilities

Adjusted current liabilities demonstrated a different pattern. Starting at 6,601 million in 2011, the value decreased to 5,376 million in 2012, representing a reduction of about 18.6%. It then increased to 6,148 million in 2013, followed by a decline to 5,364 million in 2014. In 2015, adjusted current liabilities increased again to 6,170 million. The initial drop in 2012 was the most pronounced change, and despite fluctuations, adjusted current liabilities remained within a band of approximately 5,300 to 6,600 million throughout the period, showing less variability compared to total current liabilities.

Comparative Insights

The divergence between total current liabilities and adjusted current liabilities is notable. While total current liabilities generally trended upwards, adjusted current liabilities oscillated within a narrower range, suggesting that adjustments made to current liabilities likely filtered out some of the volatility or accounted for specific components impacting the total figure. This distinction indicates that the company may have variable short-term obligations or accounting adjustments affecting the unadjusted liabilities that should be considered when evaluating the company's short-term financial health.

Total liabilities

Total liabilities exhibit a general upward trend over the five-year period. Beginning at 14,341 million US dollars at the end of 2011, the figure remains relatively stable through 2012, increasing slightly to 14,545 million US dollars. However, a marked increase occurs in 2013, reaching 22,063 million US dollars, a substantial rise compared to prior years. Following this spike, total liabilities continue to increase, albeit at a slower pace, rising to 22,360 million US dollars in 2014 and 23,893 million US dollars in 2015. This progression indicates a significant expansion in the company's obligations, particularly noticeable starting in 2013.

Adjusted total liabilities

Adjusted total liabilities present a somewhat different pattern. The value starts at 8,374 million US dollars in 2011, followed by a decrease in 2012 to 7,340 million US dollars. Contrary to total liabilities, adjusted liabilities experience a sharp increase beginning in 2013, rising to 13,655 million US dollars. Thereafter, a slight decline is observed in 2014, with reduced adjusted liabilities down to 13,286 million US dollars, before increasing again to 14,362 million US dollars in 2015. Despite fluctuations, adjusted liabilities show an overall upward trajectory but maintain values consistently lower than total liabilities, reflecting adjustments that might consider off-balance-sheet items or risk-weighted measures.

Comparative insights

Throughout the period, total liabilities remain substantially higher than adjusted total liabilities, with the gap widening notably after 2012. Both measures experience significant growth between 2012 and 2013, suggesting a material change in the company's financial structure or obligations. Subsequent years show steadier increases in liabilities, indicating continued growth in financial commitments. The adjusted figures' fluctuations imply potential changes in accounting policies or adjustments in the recognition of certain liabilities during the period under review.

The financial data reveals the trends in total and adjusted shareholders’ equity of EMC Corp. over a five-year period from December 31, 2011, to December 31, 2015.

Total Shareholders’ Equity

The total shareholders’ equity showed an overall increase from 18,959 million US dollars at the end of 2011 to a peak of 22,357 million in 2012. From 2012 onwards, the equity values experienced a slight decline and some fluctuations, ending at 21,140 million US dollars in 2015. This reflects a moderate contraction after 2012, with the equity level in 2015 remaining higher than at the starting point in 2011 but below the 2012 peak.

Adjusted Total Shareholders’ Equity

The adjusted total shareholders’ equity demonstrated a consistent upward trend throughout the period. Beginning at 26,368 million US dollars in 2011, this adjusted metric rose each year, reaching 33,964 million in 2015. This indicates a steady increase of approximately 29% over the five-year timeframe, highlighting improved adjusted equity strength compared to the total shareholders’ equity metric.

Comparison and Insights

The adjusted total shareholders’ equity was consistently higher than the reported total shareholders’ equity by a substantial margin each year. The stability and growth observed in the adjusted figures suggest that certain adjustments yield a more favorable representation of the company’s equity base. The divergence between the two measures, particularly the decline in total shareholders’ equity after 2012 compared to the steady rise in adjusted equity, may imply the presence of accounting or valuation differences impacting the reported accounting figures.

The financial data exhibits several notable trends and shifts over the five-year period.

Total Reported Debt

The total reported debt decreased significantly from 2011 to 2012, dropping from 3,305 million US dollars to 1,652 million US dollars. However, from 2012 onwards, it showed a pronounced increase, peaking at 7,159 million in 2013, before slightly declining to 5,495 million in 2014, and then rising again to 6,774 million in 2015. This pattern indicates volatility and potentially varying financing strategies or refinancing activities within this timeframe.

Total EMC Corporation’s Shareholders’ Equity

Shareholders’ equity showed an increasing trend in the initial years, rising from 18,959 million in 2011 to 22,357 million in 2012. It remained relatively stable through 2013 and 2014, with minor fluctuations around 22,300 million to 21,896 million, and then experienced a modest decline to 21,140 million by 2015. This suggests an initial accumulation of retained earnings or capital injections followed by a slight decrease, which may reflect dividend payments, stock repurchases, or net losses.

Total Reported Capital

Total reported capital, encompassing both debt and equity, increased steadily from 22,264 million in 2011 to a peak of 29,460 million in 2013. It then slightly contracted to 27,391 million in 2014 before rising again to 27,914 million in 2015. This overall increase denotes growth in the company’s capital base, albeit with some moderation after 2013.

Adjusted Total Debt

Adjusted total debt mirrored the trend of total reported debt but at higher levels, beginning at 4,450 million in 2011, declining to 2,942 million in 2012, and then increasing sharply to 8,530 million in 2013. After a minor decline to 7,199 million in 2014, it climbed further to 8,562 million in 2015. The adjusted figures likely reflect additional liabilities or debt components, emphasizing the significant rise in indebtedness after 2012.

Adjusted Total Shareholders’ Equity

The adjusted equity values were consistently higher than the reported equity, showing a steady growth trajectory from 26,368 million in 2011 to 33,149 million in 2014, with a slight decrease to 32,964 million in 2015. This trend indicates sustained equity growth, which could be attributed to revaluations, inclusion of other comprehensive income, or other adjustments.

Adjusted Total Capital

Adjusted total capital grew from 30,818 million in 2011 to a peak of 41,112 million in 2013, followed by a slight decline to 40,348 million in 2014 and then increased to 41,526 million by 2015. The adjusted capital reflects a strengthening capital structure overall, despite some fluctuations after 2013.

In summary, the data indicates that the company experienced considerable fluctuations in its debt levels, particularly with a notable increase after 2012. Shareholders’ equity remained relatively stable with modest growth, and the overall capital base expanded significantly during the period, especially when considering adjusted figures. These patterns suggest a dynamic capital management strategy with increased reliance on debt financing, balanced by stable equity levels and capital adjustments. The stability of adjusted equity in later years also points to possible efforts to sustain or improve the company’s financial position amid varying debt levels.

The financial data reveals a consistent upward trend in the company's revenues from 2011 to 2015. Over this five-year period, revenues increased from US$ 20,008 million in 2011 to US$ 24,704 million in 2015. This represents a gradual growth each year, indicating steady sales performance and possibly expanding market penetration or increasing demand for the company's products or services.

The adjusted revenues also demonstrate a similar growth pattern, rising from US$ 21,518 million in 2011 to a peak of US$ 25,626 million in 2014, followed by a slight decrease to US$ 25,341 million in 2015. The adjusted revenue figures are consistently higher than the reported revenues, suggesting that adjustments might include factors such as currency fluctuations, accounting changes, or reclassifications that provide a more normalized view of the company's income.

The incremental increase in adjusted revenues each year until 2014 followed by a marginal decline in 2015 may warrant further investigation. This slight dip could indicate changes in the business environment, pricing pressure, or adjustments to prior estimates. However, the overall trend remains positive, with both revenues and adjusted revenues improving substantially over the examined period.

The financial data for EMC Corporation over the five-year period indicates certain fluctuations in both net income and adjusted net income.

Net Income Attributable to EMC Corporation

There is a general upward trend in net income from 2011 to 2013, starting at 2,461 million US dollars in 2011 and increasing to a peak of 2,889 million US dollars in 2013. Following this peak, the net income declines, dropping to 2,714 million in 2014 and further to 1,990 million US dollars in 2015. This represents a significant decrease of approximately 27% from 2013 to 2015.

Adjusted Net Income

The adjusted net income follows a somewhat similar trend but with higher absolute values compared to the net income. It increases from 3,827 million US dollars in 2011 to 4,088 million in 2013, showing consistent growth during this period. After 2013, it declines sharply to 3,347 million in 2014 and drops further to 2,375 million US dollars in 2015, marking a considerable decrease of about 42% from the peak year 2013.

Insights on Trends

The peak year for both metrics is 2013, after which a notable downward trend is observed through to 2015. The more pronounced decrease in adjusted net income relative to net income suggests that specific adjustments made to the reported earnings impacted the company's profitability more substantially during the latter years. The declining results after 2013 could indicate challenges such as increased expenses, changes in accounting adjustments, or other operational pressures during 2014 and 2015.