Name: EMC Corp. (NYSE:EMC) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Download chart

EMC Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Product sales	13,514)	14,051)	13,690)	13,061)	12,591)
Services	11,190)	10,389)	9,532)	8,653)	7,417)
Revenues	24,704)	24,440)	23,222)	21,714)	20,008)
Cost of product sales	(5,809)	(5,738)	(5,650)	(5,258)	(5,320)
Cost of services	(3,904)	(3,453)	(3,099)	(2,817)	(2,519)
Cost of revenues	(9,713)	(9,191)	(8,749)	(8,076)	(7,839)
Gross profit	14,991)	15,249)	14,473)	13,638)	12,169)
Research and development	(3,167)	(2,991)	(2,761)	(2,560)	(2,150)
Selling, general and administrative	(8,533)	(7,982)	(7,338)	(7,004)	(6,479)
Restructuring and acquisition-related charges	(450)	(239)	(224)	(111)	(97)
Operating income	2,841)	4,037)	4,150)	3,964)	3,442)
Investment income	94)	123)	128)	115)	129)
Interest expense	(164)	(147)	(156)	(79)	(170)
Other income (expense), net	111)	(251)	(257)	(196)	(152)
Non-operating income (expense)	41)	(275)	(285)	(160)	(193)
Income before provision for income taxes	2,882)	3,762)	3,865)	3,804)	3,249)
Income tax provision	(710)	(868)	(772)	(918)	(640)
Net income	2,172)	2,894)	3,093)	2,886)	2,609)
Net income attributable to the non-controlling interests	(182)	(180)	(204)	(153)	(148)
Net income attributable to EMC Corporation	1,990)	2,714)	2,889)	2,733)	2,461)

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).

Total revenues exhibited a consistent upward trajectory from 2011 to 2015, increasing from US$ 20,008 million to US$ 24,704 million. While overall growth was positive, a shift in the revenue mix is evident, characterized by a steady expansion in services and a volatile trend in product sales. This growth period culminated in a decline in operating and net profitability during the final two years of the period.

Revenue Composition and Growth: Services revenue grew consistently each year, rising from US$ 7,417 million in 2011 to US$ 11,190 million in 2015. In contrast, product sales grew more modestly, peaking at US$ 14,051 million in 2014 before declining to US$ 13,514 million in 2015. This indicates a strategic or market-driven transition toward a service-oriented revenue model.
Gross Profitability and Cost Trends: Gross profit increased from US$ 12,169 million in 2011 to a peak of US$ 15,249 million in 2014, before decreasing to US$ 14,991 million in 2015. The cost of revenues rose steadily from US$ 7,839 million to US$ 9,713 million over the five-year period, with the cost of services increasing more rapidly than the cost of product sales, reflecting the increased volume of service delivery.
Operating Expense Analysis: Operating expenses showed a sustained increase across all primary categories. Research and development spending grew from US$ 2,150 million to US$ 3,167 million, and selling, general, and administrative expenses rose from US$ 6,479 million to US$ 8,533 million. Additionally, restructuring and acquisition-related charges spiked significantly in 2015, reaching US$ 450 million, more than double the charges recorded in the preceding year.
Operating Income and Net Profitability: Operating income followed a bell-shaped curve, peaking in 2013 at US$ 4,150 million before declining to US$ 2,841 million by 2015. This decline in operating efficiency is mirrored in the net income attributable to EMC Corporation, which reached a high of US$ 2,889 million in 2013 and fell to US$ 1,990 million in 2015. The compression in net income was driven by the combination of rising operating expenses, increased restructuring costs, and the dip in product sales during the final year.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?