Ecolab Inc. (NYSE:ECL)

The annual data on current and deferred income tax expenses over the five-year period reveals notable fluctuations and distinct trends in the components of income tax provision.

Current Income Tax Expense

The current tax expense shows a generally decreasing trend from 2017 to 2020, dropping from 596.9 million USD in 2017 to a low of 215.9 million USD in 2020. There is, however, a moderate rebound in 2021, where the current tax expense rises again to 271.1 million USD. This pattern suggests variability in taxable income or changes in tax planning strategies over the periods examined.

Deferred Income Tax Expense

The deferred tax expense exhibits more volatility and does not follow a straightforward trend. Initially, in 2017, it shows a significant negative amount of -354.5 million USD, indicating a deferred tax benefit or asset recognition. This shifts dramatically to a positive expense of 85.1 million USD in 2018, reflecting a potential reversal or realization of deferred tax liabilities. Subsequently, the figure returns to negative values in 2019 and 2020, though with substantially smaller magnitudes (-37.7 million USD and -39.3 million USD, respectively), and almost zero in 2021 (-0.9 million USD). These fluctuations indicate changes in timing differences between tax and accounting treatments and possibly adjustments in deferred tax asset valuations.

Total Provision for Income Taxes

The overall provision for income taxes, which includes both current and deferred components, displays a non-linear trend. Starting at 242.4 million USD in 2017, it increases significantly to 364.3 million USD in 2018. This is followed by a decrease in 2019 and 2020, reaching the lowest point of 176.6 million USD in 2020, before rising again to 270.2 million USD in 2021. The fluctuations primarily reflect the interplay and offset between current and deferred tax expenses, influenced by changes in taxable income, tax rates, and deferred tax positions.

In summary, the data demonstrate that while the current tax expense generally decreased during the first four years with a slight recovery in 2021, the deferred tax expenses were more erratic and contributed to significant variations in the total tax provision. These patterns likely reflect adjustments in tax planning, recognition of deferred tax assets or liabilities, and fluctuations in underlying earnings impacting taxable income differently from accounting income.

Effective Income Tax Rate Trend

The effective income tax rate exhibited a decreasing trend from 2017 to 2020, dropping significantly from 13.7% in 2017 to 15.2% in 2020 after a temporary low of 13.7% in 2017. However, there was an increase in 2021, rising to 19.1%, indicating a reversal in the previous downward trend. This shift is consistent both in the standard effective rate and the rate before changes in federal tax rate are considered.

Statutory U.S. Federal Income Tax Rate

The statutory federal tax rate saw a notable reduction from 35% in 2017 to 21% starting in 2018 and sustained through 2021. This significant and sustained decrease likely influenced the overall effective tax rate trends.

State Income Taxes, Net of Federal Benefit

State income taxes increased from 0.4% in 2017 to a peak of 1.8% in 2019, before falling back to lower levels of 0.4% in 2020 and 0.6% in 2021. The rise and subsequent decline suggest fluctuating state tax impacts on the overall tax burden.

Impact of Foreign Operations

The tax effect from foreign operations showed considerable volatility. It started at -7.4% in 2017, deepened to -13.5% in 2018, then reversed to a positive 4.8% in 2019, and shifted back to negative values in 2020 (-1.3%) and 2021 (-0.6%). This oscillation indicates varying profitability or tax treatments associated with foreign activities during this period.

Excess Stock Benefits

Excess stock benefits consistently reduced the effective tax rate across all years, with values ranging from -1.6% to -4.9%. The largest reduction occurred in 2020 at -4.9%, while the impact lessened somewhat in 2021 to -2%, reflecting fluctuations in stock-based compensation effects.

Domestic Manufacturing Deduction

The domestic manufacturing deduction was relevant only in 2017 and 2018 with a reduction of -2.2% in 2017, then it disappeared from the data, suggesting either elimination or non-applicability of this deduction in subsequent periods.

Research & Development (R&D) Credit

The R&D credit consistently contributed to reduction in the tax rate, ranging from -1.0% to -1.3% over the five-year period. Its steady presence indicates ongoing investment in research and development qualifying for tax incentives.

Foreign Derived Intangible Income

The tax benefit from foreign derived intangible income emerged only in 2020 and 2021, with reductions of -0.2% and -1.6% respectively. This signifies the adoption or effect of provisions related to intangible income from foreign sources in the latter years.

Change in Valuation Allowance

The change in valuation allowance showed considerable fluctuation. While it modestly increased the rate by 0.2% in 2017 and 0.5% in 2021, a notable spike to 9.1% was recorded in 2018, followed by a negative adjustment of -7.4% in 2019, indicating periods of reassessment of deferred tax assets valuation.

One-Time and Special Items

Various one-time tax items had variable impacts. A one-time transfer of intangibles increased the tax rate by 1.8% in 2021. Audit settlements and refunds reduced the rate by up to -0.8% in 2018. The one-time transition tax influenced the rate notably in 2017 (9.1%) and 2018 (3.7%) but was absent afterward. Prior year adjustments appeared only in 2018 with a 2.5% increase.

Other Factors

Other miscellaneous items contributed positively to the effective tax rate, gradually increasing from 0.2% in 2017 to 0.7% in 2020 and 2021, indicating minor upward tax rate adjustments over time.

Change in Federal Tax Rate (Deferred Taxes)

This factor significantly lowered the effective tax rate in 2017 by -18.2%, with a smaller impact in 2018 (-0.6%), and was not applicable in the following years. This reflects deferred tax adjustments related to the change in federal statutory tax rate, particularly around the 2017 tax reform.

Pension and post-retirement benefits

The amounts show fluctuating trends, with a decline from 195,200 in 2017 to 145,800 in 2018, followed by an increase to 234,300 in 2020, and then a significant decrease to 136,800 in 2021.

Other accrued liabilities

These liabilities demonstrate moderate variability, decreasing slightly from 144,400 in 2017 to 130,900 in 2018, then rising and peaking at 154,700 in 2020 before declining again to 135,600 in 2021.

Lease liability

Lease liabilities appear only from 2019 onward, starting at 117,900, decreasing to 95,500 in 2020, and modestly increasing to 101,300 in 2021, indicating active management of lease obligations.

Credit carryforwards

This category is recorded only in 2020 and 2021, showing growth from 76,600 to 81,800, suggesting increasing utilization or recognition of tax credits during this period.

Loss carryforwards

Loss carryforwards were highest in 2018 at 217,200 but declined sharply in subsequent years, reaching 59,600 in 2021, reflecting either utilization or expiration of these losses.

Share-based compensation

Values for share-based compensation remained relatively stable from 2017 to 2019, ranging between 58,400 and 60,500, but decreased notably to approximately 44,700 by 2021, indicating potential changes in compensation strategy or expense recognition.

Deferred income

Deferred income is not recorded until 2020, when it starts at 12,800 and substantially rises to 44,800 in 2021, reflecting increased prepayments or revenue recognition deferrals.

Other, net (first occurrence)

This item shows a downward trend from 122,200 in 2017 to 68,500 in 2018, followed by modest fluctuations, ending at 71,000 in 2021, indicating variability in miscellaneous asset or liability components.

Deferred tax assets, before valuation allowance

There is a consistent upward trend from 588,000 in 2017 to a peak of 746,300 in 2020, followed by a decline to 675,600 in 2021, suggesting changes in the company's temporary differences or tax planning strategies.

Valuation allowance

The valuation allowance experienced considerable volatility, with a large negative value reaching -184,400 in 2018, then reducing substantially in magnitude in subsequent years, stabilizing around -50,000 in 2021, indicating adjustments in the assessment of deferred tax asset realizability.

Deferred tax assets (net of valuation allowance)

Net deferred tax assets follow the general pattern of increasing after 2018, peaking at 701,000 in 2020, then decreasing to 625,300 in 2021, consistent with the pattern of gross deferred tax assets and valuation allowance movements.

Intangible assets

Intangible assets exhibit a steady decline in net book value from -865,600 in 2017 to -631,000 in 2021, indicating ongoing amortization or impairment.

Property, plant and equipment

These assets show a gradual increase in net accumulated depreciation or reduction, moving from -178,400 in 2017 to -333,500 in 2021, reflecting capital asset usage and depreciation.

Lease asset

Lease assets appear as negative values from 2019 with -118,400, lessening to -95,400 in 2020 and then slightly increasing to -100,300 in 2021, aligning with lease liability trends and capitalization of lease commitments.

Financing

This is recorded only once in 2020 as -34,200, indicating a one-time financing-related adjustment or transaction.

Other, net (second occurrence)

This line shows a consistent decrease in negative value, moving from -63,200 in 2017 to -27,700 in 2021, suggesting a reduction in miscellaneous liabilities or adjustments.

Deferred tax liabilities

Deferred tax liabilities maintain a relatively stable profile with minor fluctuations, ranging from -1,107,200 in 2017 to -1,126,700 in 2021, implying consistent temporary differences leading to deferred tax liabilities.

Net deferred tax assets (liabilities) balance

The net deferred tax position remains negative throughout the period, indicating that deferred tax liabilities exceed deferred tax assets. The balance worsened from -540,500 in 2017 to -659,500 in 2018, improved somewhat to -320,700 in 2020, but deteriorated again to -501,400 in 2021, signaling volatility in tax timing differences and valuation impacts.

Deferred Tax Assets

The deferred tax assets demonstrated an overall increasing trend from 2017 through 2020, rising from 102,200 thousand US dollars in 2017 to a peak of 163,200 thousand US dollars in 2020. However, in 2021, there was a noticeable decline to 120,600 thousand US dollars. This indicates some reduction in deferred tax benefits after a period of consistent growth.

Deferred Tax Liabilities

The deferred tax liabilities showed a generally fluctuating pattern over the five-year period. Starting at 642,800 thousand US dollars in 2017, there was a substantial increase in 2018 to 764,600 thousand US dollars, followed by a slight decrease to 740,400 thousand US dollars in 2019. A significant reduction occurred in 2020, dropping sharply to 483,900 thousand US dollars. In 2021, the liabilities rebounded to 622,000 thousand US dollars, still below the earlier years but indicating a recovery from the prior year’s low.

Summary

Overall, deferred tax assets grew steadily until 2020 before declining in 2021, while deferred tax liabilities experienced volatility with a peak in 2018, a pronounced dip in 2020, and a partial recovery in 2021. These movements suggest shifting dynamics in the company's tax positions, potentially influenced by changes in tax regulations, earnings composition, or recognition of tax-related items over the period considered.

An analysis of the adjusted financial data over the five-year period reveals several notable trends and shifts in the company’s financial position and profitability.

Total Assets

The adjusted total assets generally showed an increasing trend from 2017 to 2019, rising from approximately 19.86 billion to 20.71 billion US dollars. However, there was a significant decline in 2020 to about 17.96 billion US dollars, followed by a recovery in 2021 reaching approximately 21.09 billion US dollars. This pattern indicates a temporary contraction in asset base during 2020, likely influenced by external factors impacting asset valuation or scale, with a subsequent rebound thereafter.

Total Liabilities

Total adjusted liabilities demonstrated a relatively stable trend in the initial years, fluctuating marginally around the 11.6 to 11.4 billion US dollars range from 2017 through 2019. A slight increase occurred in 2020, rising to approximately 11.44 billion US dollars. A notable jump is observed in 2021, with adjusted liabilities escalating to about 13.33 billion US dollars. This sharp increase suggests a possible rise in debt levels or other obligations, potentially reflecting strategic financing decisions or operational pressures.

Shareholders’ Equity

The adjusted shareholders’ equity saw growth from around 8.16 billion US dollars in 2017 to a peak of approximately 9.27 billion US dollars in 2019. However, a pronounced decline occurred in 2020, bringing equity down to approximately 6.49 billion US dollars. Equity partially recovered in 2021, increasing to about 7.73 billion US dollars. The decline in equity in 2020 corresponds with the overall dip in asset base and may indicate impacts from operational losses or asset write-downs, with some recovery in the following year.

Net Income

The adjusted net income attributable to the company showed relative stability and positive performance from 2017 through 2019, ranging from about 1.15 billion to 1.52 billion US dollars. In 2020, there was a significant downturn resulting in a net loss of approximately 1.24 billion US dollars. The return to profitability in 2021 with net income close to 1.13 billion US dollars reflects a strong reversal from the prior year’s loss. This pattern suggests a challenging operational environment in 2020, potentially linked to broader economic disruptions, with effective recovery measures implemented thereafter.

Overall, the data indicates a period of growth and stability from 2017 to 2019, followed by a marked adverse impact in 2020 across multiple financial metrics, including assets, equity, and profitability. The subsequent year showed signs of recovery, though some metrics had not fully returned to peak levels by 2021. The considerable increase in liabilities in 2021 alongside recovery in equity and net income points to strategic financial management possibly aimed at supporting the company’s resurgence post-2020 challenges.

The analysis of the adjusted and reported financial ratios over the five-year period reveals several notable trends and fluctuations. Both sets of data show similar directional movements, indicating consistency between reported figures and adjusted data that accounts for deferred income tax effects.

Net Profit Margin

The reported net profit margin generally exhibits modest fluctuations between 2017 and 2019, declining from 10.9% to 9.74% and then increasing slightly to 10.46%. In 2020, there is a significant downturn to -10.22%, followed by a recovery to 8.87% in 2021. The adjusted net profit margin pattern closely mirrors this, with a slightly lower margin in 2017 at 8.34%, an increase to 10.32% in 2018, and a small fall to 10.21% in 2019. The drop in 2020 is also pronounced at -10.55%, returning to 8.87% in the final year. This reflects a substantial negative impact in 2020, likely stemming from extraordinary circumstances affecting profitability, but a partial rebound in 2021.

Total Asset Turnover

The reported total asset turnover ratio shows a steady but moderate decline over the period, starting at 0.69 in 2017 and decreasing gradually to 0.6 by 2021, indicating lower efficiency in asset utilization. The adjusted turnover ratios maintain a similar trend with marginally higher values in early years (0.7 in 2017, 0.73 in 2018) and a near-identical decline to 0.6 in 2021. This trend suggests weakening performance in asset utilization consistent across both reported and adjusted figures.

Financial Leverage

Reported financial leverage declines from 2.62 in 2017 to 2.4 in 2019, indicating slight deleveraging, before increasing notably to 2.94 in 2020 and remaining at this level in 2021. Adjusted leverage data reflects a similar pattern, falling from 2.43 in 2017 to 2.23 in 2019, then rising to 2.77 in 2020 and slightly decreasing to 2.73 in 2021. The increase in leverage in 2020 suggests greater reliance on debt or other liabilities during that year, which corresponded with deteriorated profitability.

Return on Equity (ROE)

The reported ROE begins at a relatively high level of 19.8% in 2017, decreases moderately through 2018 and 2019, then drops sharply to -19.54% in 2020, before partially recovering to 15.64% in 2021. Adjusted ROE similarly trends downward from 14.14% to 16.41% during 2017-2019, then falls to -19.18% in 2020 and rebounds to 14.61% in 2021. This pattern is consistent with the negative net profit margin and highlights the significant adverse impact on shareholders’ returns during 2020, with partial restoration thereafter.

Return on Assets (ROA)

Both reported and adjusted ROA follow similar dynamics, with reported ROA oscillating mildly around 7.5% from 2017 to 2019, plunging to -6.65% in 2020, and recovering modestly to 5.33% in 2021. Adjusted ROA starts lower at 5.81% in 2017, remains stable through 2019, falls to -6.93% in 2020, and improves slightly to 5.35% in 2021. This corroborates the overall trend of a sharp downturn in asset profitability in 2020, partially reversed in the subsequent year.

In summary, the financial data illustrates a period of stable profitability and efficiency performance from 2017 through 2019, followed by a pronounced adverse impact in 2020 reflected across all key metrics. This is characterized by negative profitability, increased financial leverage, and deterioration in returns on equity and assets. The year 2021 shows evidence of recovery, although most indicators remain below pre-2020 levels. The consistent alignment between reported and adjusted data implies that deferred income tax adjustments do not significantly alter the underlying financial trends observed.

The financial data presents both reported and adjusted net income attributable to the company over a five-year period, alongside their corresponding net profit margins.

Net Income Trends

Reported net income generally showed a positive performance from 2017 to 2019, increasing from approximately 1,508 million USD in 2017 to around 1,559 million USD in 2019. However, in 2020, there is a significant decline, with reported net income turning negative to approximately -1,205 million USD, representing a notable loss. In 2021, the reported net income recovered to a positive figure of approximately 1,130 million USD, though this value remains below pre-2020 levels.

Adjusted net income followed a similar pattern, though values differed somewhat. From 2017 to 2018, adjusted income increased from roughly 1,153 million USD to about 1,514 million USD, then slightly decreased in 2019 to approximately 1,521 million USD. In 2020, adjusted net income also turned negative, recording a loss of around -1,244 million USD, closely tracking the reported figure. By 2021, the adjusted net income rebounded to approximately 1,129 million USD, similar to the recovery seen in reported figures.

Net Profit Margin Trends

The reported net profit margin shows a generally positive trend from 2017 to 2019, rising from 10.9% in 2017 to a peak of 10.46% in 2019. This was followed by a significant decline in 2020, with the margin turning negative at -10.22%, indicating operational and profitability challenges. In 2021, the reported margin recovered to 8.87%, still below earlier positive margins but indicating a return toward profitability.

Adjusted net profit margin follows a comparable trend, increasing from 8.34% in 2017 to 10.32% in 2018, and slightly declining to 10.21% in 2019. Similar to the reported margin, it sharply decreased to -10.55% in 2020, reflecting significant negative profitability. The adjusted margin improved to 8.87% in 2021, aligning exactly with the reported figure for that year.

Insights

Both reported and adjusted figures indicate consistent profitability and growth from 2017 through 2019, with a pronounced disruption in 2020 that resulted in significant losses. The negative values in 2020 suggest extraordinary or adverse conditions impacting the business. The recovery in 2021, while positive, does not fully restore profitability to pre-2020 levels, as reflected in both net income and profit margins.

The close alignment between reported and adjusted metrics implies that adjustments, including deferred income tax impacts, had limited influence on the overall income and margin trends over the period, with both sets of results following similar trajectories.

Total Assets

The reported total assets exhibit a gradual increase from 19,962,400 thousand US dollars at the end of 2017 to 20,074,500 thousand US dollars in 2018 and further to 20,869,100 thousand US dollars in 2019. There is a notable decline in 2020 to 18,126,000 thousand US dollars, followed by a recovery to 21,206,400 thousand US dollars in 2021. The adjusted total assets follow a similar pattern, starting at 19,860,200 thousand US dollars in 2017 and peaking at 20,713,500 thousand US dollars in 2019. The dip in 2020 is evident with the assets reported at 17,962,800 thousand US dollars, and a subsequent increase in 2021 to 21,085,800 thousand US dollars.

Total Asset Turnover

The reported total asset turnover ratio begins at 0.69 in 2017, rising slightly to 0.73 in 2018, then decreasing to 0.71 in 2019. There is a further decline to 0.65 in 2020 and a marked reduction to 0.60 in 2021. The adjusted total asset turnover closely mirrors these trends, starting at 0.70 in 2017, peaking at 0.73 in 2018, and marginally declining to 0.72 in 2019. The ratio decreases to 0.66 in 2020 and further to 0.60 in 2021.

Analysis

There is a clear trend of growth in total assets from 2017 through 2019, followed by a significant contraction in 2020, likely reflecting external factors impacting asset levels during that period. The rebound in 2021 suggests recovery or strategic asset accumulation. The adjusted total assets generally provide a slightly lower but consistent picture compared to reported assets, indicating the impact of income tax adjustments is relatively stable over the period analyzed.

The total asset turnover ratios indicate efficient use of assets in generating sales up to 2018, with a reduction thereafter. The decline in asset turnover in 2020 and 2021 suggests decreased efficiency or lower sales relative to asset base, possibly related to the asset declines and external market conditions. The adjusted turnover ratios reinforce this interpretation by showing a parallel trajectory. Overall, the patterns highlight fluctuations in asset management efficiency and asset levels, with notable disruptions in 2020 followed by partial recovery.

The analysis of the reported and deferred income tax adjusted financial data over the five-year period reveals several notable trends in the company’s asset base, equity position, and financial leverage.

Total Assets

Both reported and adjusted total assets show a general growth trend from 2017 through 2019, increasing from approximately 19.96 billion to 20.87 billion US dollars (reported) and 19.86 billion to 20.71 billion US dollars (adjusted). However, there is a marked decline in 2020, with reported assets falling to around 18.13 billion and adjusted assets to approximately 17.96 billion US dollars. In 2021, total assets rebound strongly, surpassing prior peaks to reach 21.21 billion (reported) and 21.09 billion US dollars (adjusted). This pattern suggests a temporary asset contraction likely linked to external factors in 2020, followed by recovery and expansion in the subsequent year.

Shareholders’ Equity

The reported shareholders’ equity also exhibits an upward trend between 2017 and 2019, growing from roughly 7.62 billion to 8.69 billion US dollars. However, 2020 shows a significant decrease to approximately 6.17 billion (reported), aligning with the downturn in total assets. Adjusted equity figures follow a similar trajectory but consistently present higher values compared to reported data, ranging from 8.16 billion in 2017 to a peak of 9.27 billion in 2019 before decreasing to 6.49 billion in 2020. In 2021, both reported and adjusted equity figures recover to 7.22 billion and 7.73 billion US dollars respectively, indicating restoration of equity capital after the dip in 2020.

Financial Leverage

The financial leverage ratios demonstrate variability aligned with the asset and equity changes. Reported financial leverage declines progressively from 2.62 in 2017 to 2.40 in 2019, indicating a reduction in debt relative to equity during this period. However, there is a notable increase in 2020 to 2.94, which remains stable in 2021. The adjusted financial leverage reflects a similar trend but exhibits lower ratios consistently, decreasing from 2.43 in 2017 to 2.23 in 2019, then rising to 2.77 in 2020 and slightly declining to 2.73 in 2021. The increase in leverage ratios during 2020 suggests enhanced reliance on debt financing or reduced equity base during the year, consistent with the observed contraction in equity.

Overall, the financial data indicates a period of growth in assets and equity through 2019, interrupted by a significant downturn in 2020, likely attributable to extraordinary economic conditions or company-specific challenges. Adjusted figures consistently display higher equity values and lower leverage ratios compared to reported data, underscoring the impact of income tax adjustments on the company’s reported financial position. The recovery in 2021 demonstrates resilience and a strengthening of the balance sheet following the previous year’s contraction.

The financial data reveals several notable trends over the five-year period. Both reported and adjusted net income attributable to the company exhibit fluctuations, with positive results from 2017 to 2019, a sharp downturn in 2020, and a rebound in 2021. Specifically, reported net income increased from 1,508,400 thousand US dollars in 2017 to 1,558,900 thousand in 2019 before dropping significantly to a loss of 1,205,100 thousand in 2020, then recovering to 1,129,900 thousand in 2021. Adjusted net income follows a similar pattern, peaking slightly earlier in 2018 at 1,514,200 thousand before a decline and subsequent recovery aligning with the reported figures.

Total shareholders’ equity, both reported and adjusted, shows a general upward trajectory from 2017 through 2019. Reported equity increased from approximately 7,618,500 thousand to 8,685,300 thousand, while adjusted equity rose from 8,159,000 thousand to 9,270,100 thousand over the same period. However, a significant decrease occurs in 2020, with reported equity falling to 6,166,500 thousand and adjusted equity to 6,487,200 thousand, reflecting the impact of the adverse financial performance that year. In 2021, both measures of equity partially recover, reaching 7,224,200 thousand for reported and 7,725,600 thousand for adjusted shareholders’ equity.

Return on equity (ROE) metrics mirror the income and equity trends. Reported ROE remains strong and relatively stable between 2017 and 2019, ranging from 17.86% to 19.8%. It then drops sharply to a negative 19.54% in 2020, reflecting the loss recorded during that period, followed by a partial recovery to 15.64% in 2021. Adjusted ROE exhibits a similar trend but with slightly lower peaks, diminishing from 14.14% in 2017 to a high of 17.48% in 2018 before declining steeply to -19.18% in 2020 and rising again to 14.61% in 2021.

Overall, the data depicts a period of financial strength and growth from 2017 to 2019, severely impacted by a downturn in 2020, likely indicative of extraordinary circumstances affecting the company's profitability and equity base. By 2021, there are signs of recovery, although neither net income nor equity, nor ROE metrics, fully return to their previous peak levels within the five years observed. The adjusted figures, which account for tax effects, tend to be slightly more conservative than the reported data but follow the same overall pattern, underscoring the consistency of the underlying financial trends.

Net Income Trends

The reported net income attributable to the company showed a generally positive trend from 2017 through 2019, increasing from approximately $1.51 billion to $1.56 billion. However, in 2020, a significant decline occurred, with reported net income turning into a loss of about $1.21 billion, followed by a recovery in 2021 reaching around $1.13 billion. The adjusted net income mirrored this pattern, rising from $1.15 billion in 2017 to $1.52 billion in 2019, then dropping sharply to a loss of $1.24 billion in 2020, and recovering to roughly $1.13 billion in 2021. This indicates a substantial adverse event or adjustment impacting profitability in 2020, followed by a strong rebound the following year.

Total Assets Trends

Reported total assets generally increased from $19.96 billion in 2017 to a peak of $20.87 billion in 2019. However, in 2020, there was a notable decline to $18.13 billion, with assets rebounding to $21.21 billion in 2021, marking a new high. Adjusted total assets followed a similar pattern, decreasing from $19.86 billion in 2017 to $17.96 billion in 2020 before recovering to $21.09 billion in 2021. This fluctuation suggests asset base volatility possibly linked to the same factors affecting net income, with asset disposals or impairments in 2020 and asset acquisitions or recoveries in 2021.

Return on Assets (ROA) Analysis

Reported ROA reflected the income trends, starting at 7.56% in 2017 and remaining relatively stable through 2019 (around 7.1% to 7.5%). In 2020, it fell sharply to a negative 6.65%, indicating unprofitable use of assets that year. ROA then improved to 5.33% in 2021. The adjusted ROA showed a somewhat similar pattern, from 5.81% in 2017 to around 7.58% in 2018, maintaining near 7.34% in 2019 before dropping significantly to -6.93% in 2020 and recovering modestly to 5.35% in 2021. This reinforces the interpretation that 2020 was an anomalous year with substantial adverse impacts on asset profitability.

Overall Insights

The data indicates a period of stable and growing financial performance up to 2019, followed by a pronounced downturn in 2020 affecting both profitability and asset levels, likely due to extraordinary circumstances or restructuring that year. The subsequent recovery in 2021 across net income, total assets, and ROA highlights resilience and successful efforts to restore operational and financial health. The close alignment between reported and adjusted figures suggests that adjustments reflect significant but consistent items influencing reported results.