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.
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Sales (P/S) since 2005
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Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The financial data reveals several notable trends over the five-year period ending December 31, 2021. Net sales exhibit a steady upward trajectory, rising from approximately $3.44 billion in 2017 to $5.23 billion in 2021, indicating consistent revenue growth. Correspondingly, the cost of sales also increases, but at a slower rate, leading to a significant improvement in gross profit, which grows from $2.56 billion to nearly $4.0 billion.
Operating expenses, comprising selling, general and administrative expenses, as well as research and development expenses, show a rising pattern as well. Selling, general, and administrative expenses increase from about $985 million in 2017 to nearly $1.49 billion in 2021, while research and development expenses rise from $553 million to over $903 million, reflecting ongoing investment in growth and innovation.
Intellectual property litigation income (expenses) demonstrate considerable volatility, with net expenses impacting earnings particularly in 2018 and 2020. The change in fair value of contingent consideration liabilities fluctuates between positive and negative values, but it provides a minor contribution relative to other items. Special charges appear notably in the earlier years, with no reported values in the later periods.
Operating income follows an inconsistent yet generally positive pattern, reaching a peak of approximately $1.69 billion in 2021 after a dip in 2018 and 2020. This indicates some challenges in profitability during those years, potentially related to restructuring, litigation, or other operational factors.
Interest expense remains relatively stable over the period, ranging between approximately $16.0 million and $30.0 million, while interest income declines slightly from $20.3 million to $17.4 million. Foreign exchange gains and losses are minor but mostly positive in recent years, contributing modestly to overall income.
Income before provision for income taxes closely mirrors operating income trends, with fluctuations but steady overall growth to $1.70 billion in 2021. The provision for income taxes varies without a clear trend, but the absolute values appear smaller relative to income before taxes in several years, suggesting potential tax management or timing effects.
Net income reflects the combined effects of revenues, expenses, and taxes, showing healthy growth from $584 million in 2017 to $1.5 billion in 2021, although it exhibits minor declines in 2018 and 2020. This underlines the company's ability to increase profitability overall despite some volatility in certain expense categories and external factors.
- Revenue and Profit Growth
- Consistent increases in net sales and gross profit highlight expanding market presence and improved margins.
- Operating Expenses
- Rising selling, general, and administrative expenses and research and development costs demonstrate continued investment in business growth and innovation.
- Earnings Quality
- Operating income and net income show growth with intermittent fluctuations, partly influenced by litigation expenses and special charges.
- Financial Costs
- Relatively steady interest expenses and slight decreases in interest income suggest stable financing conditions.
- Taxation
- Variable tax provisions imply fluctuating tax strategies or impacts of income volatility.
Overall, the data indicate a robust growth profile with increasing sales and profitability offsetting rising expenses. The company appears to manage operational and financial risks reasonably, maintaining strong net income growth despite episodic challenges in litigation and special charges.