Emerson Electric Co. (NYSE:EMR)

Current Income Tax Expense

The current income tax expense shows a declining trend over the six-year period. Beginning at 1,317 million USD in fiscal year 2014, the figure increased slightly to 1,457 million USD in 2015, which represents the peak value within the timeframe. After 2015, the expense consistently decreased year over year, reaching 579 million USD by 2019. This represents a substantial reduction of approximately 60% from the 2015 high. The steady decline after 2015 suggests a decreasing tax liability related to current income taxes or potentially lower taxable income or changes in tax regulations impacting the current tax burden.

Deferred Income Tax Expense

The deferred income tax expense exhibits greater volatility and generally smaller magnitudes compared to the current tax expense. It remained negative across all years, indicating deferred tax benefits rather than expenses, except in 2015 and 2016 where the magnitude approached zero. In 2014, the deferred tax benefit was -153 million USD, markedly larger than other years. Subsequently, it reduced substantially in size to -29 million USD in 2015 and -13 million USD in 2016. There was a moderate increase in deferred tax benefit to -42 million USD in 2017, followed by a considerable increase in the magnitude of deferred tax benefit to -250 million USD in 2018. In 2019, the deferred tax benefit contracted again to -48 million USD. This irregular pattern implies fluctuations in timing differences between accounting and tax treatments, or changes in tax planning strategies affecting deferred tax assets or liabilities.

Total Income Tax Expense

The total income tax expense, which combines current and deferred components, mirrors the trends observed in the current tax expense due to the relatively smaller magnitude of deferred amounts. After peaking at 1,428 million USD in 2015, the total tax expense declines consistently each year, reaching a low of 443 million USD in 2018 before rising moderately to 531 million USD in 2019. The significant drop from 2015 to 2018 suggests either lower taxable profitability or effective tax planning measures lowering the overall tax burden. The slight increase in 2019 may reflect changes in operational results or tax policy adjustments.

U.S. Federal Statutory Tax Rate

The U.S. federal statutory tax rate remained stable at 35% from 2014 through 2017, then declined significantly to 24.5% in 2018 and further reduced to 21% in 2019, indicating the impact of tax reforms during this period.

State and Local Taxes, Net of U.S. Federal Tax Benefit

This rate stayed relatively consistent, fluctuating narrowly between 0.5% and 1.2% over the six-year period, showing stable state and local tax contributions after federal tax adjustments.

Non-U.S. Rate Differential

The non-U.S. rate differential started negative at -4.2% in 2014, improving gradually to near neutral by 2018 (0.8%) and turning positive at 1.8% in 2019. This suggests a narrowing gap or more favorable tax conditions in non-U.S. jurisdictions in later years.

Non-U.S. Tax Holidays

This component maintained a consistent negative effect on the tax rate, ranging between -1.1% and -0.8%, indicating ongoing utilization of tax holidays outside the U.S.

U.S. Manufacturing Deduction

There was some variability in the deduction, starting at -1.5% in 2014, decreasing slightly over the years until it disappears in 2019, reflecting either reduced eligibility or changes in related tax provisions.

Foreign Derived Intangible Income

Reported only in 2019, this factor reduced the effective tax rate by 1.1%, possibly tied to new tax regulations affecting intangible income derived from foreign sources.

Gains on Divestitures

This item showed minor positive contributions in 2015 and 2018, suggesting occasional benefits from asset sales that marginally influenced the tax rate.

Subsidiary Restructuring

Appearing from 2017 onward as a negative adjustment, the impact grew larger from -1.8% to -2.6%, indicating increasing tax benefits from corporate restructuring activities.

Spinoff-Related Items

Noted only in 2015 with a 1.1% positive adjustment, implying that specific one-time tax effects related to spinoffs occurred that year.

Goodwill Impairment

Recorded exclusively in 2014 at 5.3%, this item added to the effective tax rate that year, reflecting impairment losses impacting tax liabilities initially.

Other Effects

Minor, generally negligible effects ranging from 0.4% to -0.4% throughout the periods, indicating small miscellaneous tax adjustments.

Effective Income Tax Rate Before Tax Act Transition

The rate consistently declined from 34.8% in 2014 down to 18.6% in 2019, with a notable drop starting in 2016, reflecting broad trends of decreasing tax rates prior to the full impact of the Tax Act.

Transition Impact of Tax Act

In 2018, a significant 7.1% reduction is attributed to the transition effects of the Tax Act, highlighting the major influence of tax legislation changes in that year.

Effective Income Tax Rate

The overall effective tax rate mirrors the downward trend, remaining nearly unchanged between 2014 and 2017, then dropping notably in 2018 to 16.6%, before rising slightly to 18.6% in 2019, showing the combined effect of statutory rate reductions and transitional adjustments.

Net operating losses and tax credits

These showed a general decline from 238 million in 2014 to 164 million in 2016, followed by a sharp increase to 444 million in 2017, after which they slightly decreased but remained elevated around 396 to 407 million in 2018 and 2019.

Accrued liabilities

Accrued liabilities decreased steadily from 311 million in 2014 to 238 million in 2018 and further to 228 million in 2019, indicating a downward trend in obligations recorded but not yet paid.

Postretirement and postemployment benefits

There was a consistent decline in these benefits from 93 million in 2014 to 36 million in 2019, reflecting a possible reduction in related liabilities or changes in benefit obligations.

Employee compensation and benefits

This category fluctuated, peaking at 206 million in 2016 before decreasing to 110 million in 2019. The general trend shows a reduction over the period, especially from 2017 onward.

Pensions (first occurrence)

The pension figures showed a substantial increase from 28 million in 2014 to 271 million in 2016, followed by a sharp decline to 72 million in 2017. Data for 2018 is missing; it rose again to 95 million in 2019, indicating volatility in pension-related items.

Other (first occurrence)

Values in this category increased from 137 million in 2014 to 196 million in 2017, then decreased steadily to 121 million by 2019. This suggests variability with a peak in the mid-period.

Deferred tax assets, gross

This asset increased consistently from 1003 million in 2014 to a peak of 1274 million in 2017, followed by a significant decline to 941 million in 2018 and a slight recovery to 997 million in 2019.

Valuation allowances

Valuation allowances remained negative throughout, increasing in magnitude from -154 million in 2014 to a peak of -341 million in 2018, then slightly decreasing to -307 million in 2019, indicating increased provisions against deferred tax assets during the period.

Deferred tax assets, net

Net deferred tax assets increased from 849 million in 2014 to 1026 million in 2016, then experienced a decline to 600 million in 2018 before recovery to 690 million in 2019, closely mirroring the gross deferred tax assets trend but showing greater volatility due to valuation allowance movements.

Intangibles

Intangible assets remained consistently negative, ranging from -649 million in 2014 to -637 million in 2019, with a notable deeper trough at -753 million in 2017, suggesting impairments or amortization impacts during this period.

Pensions (second occurrence)

The single data point in 2018 shows -43 million, with no other data available, indicative of either a liability or adjustment related to pensions for that year.

Property, plant and equipment

These assets remained negative throughout, with values ranging from -260 million in 2015 to a low of -187 million in 2018, then slightly decreasing to -195 million in 2019. The pattern suggests some divestitures or depreciation effects reducing gross property values.

Undistributed non-U.S. earnings

Data begins at a low of -9 million in 2016, falling sharply to -249 million in 2017, before partial recoveries to around -50 million by 2019, indicating fluctuations in retained earnings from international operations.

Other (second occurrence)

This item remained negative throughout, decreasing in magnitude from -98 million in 2014 to around -35 to -39 million in the latter years, suggesting a reduction in other liabilities or accruals.

Deferred tax liabilities

Deferred tax liabilities were consistently negative, showing fluctuations from -1005 million in 2014 to a high negative of -1304 million in 2017, improving somewhat to -920 million by 2019, thus indicating volatile deferred tax liability positions.

Net deferred income tax asset (liability)

This measure displayed considerable variability, moving from a negative -156 million in 2014 to a positive 226 million in 2016, then dropping sharply back to negative values reaching -410 million in 2018 before improving to -230 million in 2019. This indicates significant swings in the net deferred tax position over the period.

The financial data over the periods ending September 30 from 2014 to 2019 reveals several notable trends related to deferred tax assets and liabilities.

Current Deferred Tax Assets, Net

Values for current deferred tax assets showed a slight fluctuation from 2014 to 2016, starting at 354 million USD in 2014, maintaining a similar value at 353 million USD in 2015, and increasing to 400 million USD in 2016. Data for subsequent years is missing, preventing analysis beyond 2016 for this category.

Noncurrent Deferred Tax Assets

This category experienced variability in reported values. Data is missing for 2015 and 2016, but figures for surrounding years are available. In 2014, the noncurrent deferred tax assets stood at 62 million USD, rising to 86 million USD in 2017, then slightly decreasing to 74 million USD in 2018, before increasing again to 97 million USD in 2019. Overall, there is an upward trend from 2014 to 2019, despite the data gaps.

Noncurrent Deferred Tax Liabilities

A clear fluctuating trend is observed in noncurrent deferred tax liabilities over the six-year span. The liabilities significantly decreased from 572 million USD in 2014 to 362 million USD in 2015 and further to 174 million USD in 2016. However, there was a rebound to 425 million USD in 2017, peaking slightly at 484 million USD in 2018, then declining again to 327 million USD in 2019. This pattern indicates volatility and alternating periods of decrease and increase in long-term deferred tax obligations.

In summary, deferred tax assets, both current and noncurrent, generally show an upward movement where data is available, with the current category rising initially and the noncurrent category showing growth by the end of the period. Conversely, noncurrent deferred tax liabilities display a non-linear trend with significant decreases followed by recoveries and then decline again, reflecting potential variations in tax timing differences or changes in the company's tax position over time.

The data reveals several noteworthy trends in the financial position and performance over the six-year period ending September 30, 2019.

Current Assets

Reported current assets steadily declined from $10,867 million in 2014 to $6,619 million in 2018, indicating a reduction of approximately 39%. In 2019, there was a slight recovery to $7,139 million. The adjusted current assets mirror this downward trend, albeit starting and ending at slightly lower values due to tax-related adjustments.

Total Assets

Total assets, both reported and adjusted, exhibit a continuous downward trend from 2014 through 2017, falling from about $24.2 billion to approximately $19.5 billion. In 2018 and 2019, total assets stabilized around $20.4 billion, suggesting a halt in asset base contraction toward the end of the period.

Total Liabilities

Reported liabilities slightly decreased from $14.0 billion in 2014 to $10.8 billion in 2017, followed by a gradual increase to $12.2 billion in 2019. Adjusted liabilities show a comparable pattern but are consistently lower than reported liabilities, reflecting the impact of deferred tax adjustments. Overall, liabilities decreased in the earlier years and then increased moderately during the latter part of the period.

Common Stockholders’ Equity

Reported equity declined substantially from $10.1 billion in 2014 to $7.6 billion in 2016. There was a notable rebound in 2017 and 2018, increasing to $8.9 billion and $8.9 billion respectively, before dropping to $8.2 billion in 2019. Adjusted equity presents a similar trajectory but remains slightly higher than reported figures for most years, likely influenced by tax-related adjustments.

Net Earnings Attributable to Common Stockholders

Reported net earnings exhibited volatility, rising from $2.1 billion in 2014 to a peak of $2.7 billion in 2015, then declining sharply to around $1.5 billion in 2017. Earnings recovered in 2018 to $2.2 billion and maintained a slight increase to $2.3 billion in 2019. Adjusted net earnings follow a similar pattern but show lower values than reported earnings, suggesting that tax adjustments reduce recognized profitability.

Overall, the financial data indicates a period of contraction in asset size and equity early on, with stabilization and partial recovery in later years. The decline in net earnings midway followed by recovery points to fluctuating profitability conditions. The consistent differences between reported and adjusted figures emphasize the material impact of income tax treatments on the company's financial presentation.

The analysis of the financial data over the six-year period reveals several notable trends across liquidity, profitability, efficiency, leverage, and returns, both on a reported and adjusted basis.

Liquidity Ratios

The reported current ratio remained relatively stable from 2014 to 2016, fluctuating slightly around 1.24 to 1.29. A significant improvement occurred in 2017, rising sharply to 1.64, indicating enhanced liquidity, but decreased markedly to 1.07 in 2018 before rebounding modestly to 1.19 in 2019. The adjusted current ratio followed a very similar pattern with values close to the reported ratios, suggesting minimal impact from deferred income tax adjustments on liquidity measures.

Profitability Margins

The reported net profit margin showed strong performance overall, peaking at 12.66% in 2018. It increased from 8.75% in 2014 to a high of 12.15% in 2015, then dipped slightly in 2017 to 9.94% before rising again through 2018 and 2019. The adjusted net profit margin paralleled this trend but was consistently marginally lower, reflecting the adjustments made for income taxes. The fluctuation suggests some variability in profitability efficiency but a generally favorable trend towards improved margins over the period.

Asset Efficiency

The reported total asset turnover experienced a noticeable decline from 1.01 in 2014-2015 down to 0.67 in 2016, indicating a reduced efficiency in using assets to generate sales. Thereafter, it improved steadily each year, reaching 0.90 by 2019. Adjusted ratios were nearly identical, implying that deferred tax adjustments had little effect on asset turnover. This overall pattern suggests a temporary dip in asset utilization efficiency followed by recovery and gradual enhancement.

Financial Leverage

The reported financial leverage ratio increased from 2.39 in 2014 to a peak of 2.87 in 2016, suggesting a trend toward higher reliance on debt or other liabilities relative to equity during this time. Subsequently, the ratio declined in 2017 to 2.25 and then remained relatively stable through 2019, ending at 2.49. Adjusted financial leverage exhibited a similar trajectory but was generally slightly lower than the reported figures. This trend indicates cautious deleveraging after 2016.

Return on Equity (ROE)

The reported ROE fluctuated substantially, reaching a peak of 33.54% in 2015, followed by a notable decline to 17.41% in 2017. Subsequently, ROE recovered, climbing to 28.01% in 2019. Adjusted ROE likewise followed this pattern, albeit consistently slightly lower than the reported measure. These variations likely reflect changes in profitability, leverage, and asset efficiency combined.

Return on Assets (ROA)

The reported ROA demonstrated a similar pattern to ROE, with an initial increase to 12.27% in 2015, a decline in 2016 and 2017 to around 7.5%, and a subsequent gradual improvement to 11.25% by 2019. Adjusted ROA was close to reported values but marginally lower in most periods. This trend corresponds with the movements in asset turnover and profit margins, indicating overall efficiency and profitability improvements over time.

In summary, the data indicate a period of fluctuating liquidity and efficiency between 2014 and 2017 followed by signs of recovery and improvement. Profitability margins have generally trended upward after a dip in 2017, and leverage was cautiously reduced after peaking in 2016. The consistent close alignment between reported and adjusted data suggests that income tax adjustments had limited impact on the financial ratios analyzed.

The analysis of the annual financial data reveals several notable trends in current assets and liquidity ratios over the six-year period ending September 30, 2019.

Current Assets

Reported current assets decreased steadily from US$10,867 million in 2014 to US$6,619 million in 2018, reflecting a cumulative decline of approximately 39%. This declining trend was interrupted in 2019 by a moderate increase to US$7,139 million. Adjusted current assets exhibited a similar downward pattern, starting at US$10,513 million in 2014 and falling to US$6,619 million in 2018, before rising to US$7,139 million in 2019. The adjustment made to current assets had a marginal effect, with values consistently slightly lower than reported figures, suggesting that the adjustments mainly involved conservative reclassifications or exclusions.

Current Ratio

The reported current ratio remained relatively stable around 1.29 during 2014 and 2015, slightly declining to 1.24 in 2016. Notably, there was a significant increase to 1.64 in 2017, indicating an enhancement in liquidity position, possibly due to reductions in current liabilities or relative improvements in current asset management. However, this ratio sharply dropped to 1.07 in 2018, marking the lowest liquidity in the period and indicating potential short-term liquidity pressures. It partially recovered to 1.19 in 2019. The adjusted current ratio followed this same pattern, with minor numerical differences reflecting the adjustments made to current assets.

Insights

The steady decline in both reported and adjusted current assets through 2018 suggests a reduction in the company's short-term asset base, which may have potential implications for liquidity risk. The spike in the current ratio in 2017 could indicate a temporary improvement in liquidity or effective working capital management during that fiscal year. The subsequent decline in 2018 highlights the importance of monitoring short-term financial stability. The moderate recovery in 2019 suggests some stabilization but does not restore liquidity levels to those seen in the earlier years of the period.

Reported Net Earnings Common Stockholders

The reported net earnings exhibited significant fluctuations over the six-year period. Starting at $2,147 million in 2014, earnings peaked at $2,710 million in 2015, subsequently declining sharply to $1,635 million in 2016 and further to $1,518 million in 2017. From 2017 onwards, there was a notable recovery, with earnings increasing to $2,203 million in 2018 and $2,306 million in 2019.

Adjusted Net Earnings Common Stockholders

Adjusted net earnings followed a trend similar to the reported figures, beginning at $1,994 million in 2014 and reaching a high of $2,681 million in 2015. The adjustment data also showed a decrease over the following two years to $1,622 million in 2016 and $1,476 million in 2017. The subsequent period saw a recovery, with adjusted earnings rising to $1,953 million in 2018 and reaching $2,258 million in 2019. The adjusted earnings were consistently slightly lower than the reported earnings, reflecting the impact of the income tax adjustments.

Reported Net Profit Margin

The reported net profit margin demonstrated variability across the years. It increased from 8.75% in 2014 to a peak of 12.15% in 2015, then declined to 11.26% in 2016 and further to 9.94% in 2017. After 2017, the margin improved, climbing to 12.66% in 2018 and slightly declining to 12.55% in 2019. This pattern mirrors the fluctuations seen in reported net earnings, indicating corresponding changes in profitability.

Adjusted Net Profit Margin

The adjusted net profit margin also showed changes consistent with the reported margin but tended to be marginally lower. It rose from 8.13% in 2014 to 12.02% in 2015, then decreased to 11.17% in 2016 and 9.67% in 2017. The margin increased after 2017 to 11.22% in 2018 and 12.29% in 2019. The adjustment appears to have a slight downward impact on the net profit margin, reflecting the effect of deferred and annual income tax considerations.

The analysis of the financial data over the six-year period reveals several notable trends in the company's asset base and turnover ratios. The reported total assets demonstrate a consistent decline from 24,177 million US dollars in 2014 to 19,589 million in 2017, followed by a slight recovery reaching 20,497 million dollars in 2019. Adjusted total assets follow a similar pattern, decreasing from 23,761 million dollars in 2014 to 19,503 million dollars in 2017, and then slightly increasing to 20,400 million in 2019.

Both reported and adjusted total asset turnover ratios remain stable at around 1.01-1.03 in 2014 and 2015, indicating efficient use of assets in those years. However, a significant decline occurs in 2016 to about 0.67-0.68, signaling a drop in efficiency. From 2017 onwards, the turnover gradually improves, increasing to 0.78 in 2017, 0.86-0.85 in 2018, and reaching 0.9 by 2019, yet it does not return to the levels observed earlier in 2014 and 2015.

Total Assets

There is a clear downward trend in both reported and adjusted total assets from 2014 through 2017, decreasing by approximately 19% over this period. This trend suggests asset base reduction or divestitures. Post-2017, the asset levels stabilize with a modest increase till 2019, indicating possible asset acquisitions or a halt in disposals.

Total Asset Turnover

The turnover ratio illustrates an initial period of high efficiency in asset utilization, followed by a sharp decline in 2016. The factors behind this dip could include reduced revenue generation from assets or asset revaluation effects. Subsequent years show recovery in asset turnover, approaching but not matching the initial higher efficiency levels.

Comparison of Reported and Adjusted Figures

Reported and adjusted data are closely aligned throughout the examined period, with minor differences not materially impacting the interpretation of trends. This alignment supports the reliability of the adjusted figures in reflecting operational performance consistent with the reported data.

In summary, the company experienced a significant contraction of its asset base accompanied by a marked decline in asset utilization efficiency around 2016. The gradual recovery in asset turnover and stabilization of total assets in later years suggest efforts toward operational improvement and asset management stabilization. Nevertheless, turnover has not reached the efficiency levels seen in the earlier years, indicating potential areas for ongoing improvement.

The analysis of the financial data over the six-year period reveals several notable trends in the company’s asset base, equity, and leverage ratios. The reported total assets exhibit a general declining trend from 24,177 million USD in 2014 down to 19,589 million USD in 2017, followed by a modest recovery to 20,497 million USD by 2019. The adjusted total assets follow a very similar pattern, decreasing from 23,761 million USD in 2014 to 19,503 million USD in 2017 before rising slightly to 20,400 million USD in 2019. This indicates a contraction in the asset base during the middle years of the period with some stabilization in the later years.

Common stockholders’ equity, both reported and adjusted, shows a different pattern. Reported equity decreased significantly from 10,119 million USD in 2014 to a low of 7,568 million USD in 2016, then rebounded to 8,947 million USD by 2018 before dipping again to 8,233 million USD in 2019. Adjusted equity follows a similar but slightly varied course, falling from 10,275 million USD in 2014 to 7,342 million USD in 2016, then recovering more strongly to 9,357 million USD in 2018, and finally decreasing to 8,463 million USD in 2019. The fluctuations suggest periods of equity reduction possibly due to losses, dividends, or buybacks, followed by periods of recovery.

Financial leverage, expressed as a ratio of total assets to common equity, demonstrates notable variability. Reported financial leverage increases from 2.39 in 2014, peaks at 2.87 in 2016, then declines noticeably to 2.25 in 2017, with a gradual increase thereafter to 2.49 in 2019. Adjusted financial leverage similarly rises from 2.31 in 2014 to a high of 2.91 in 2016, drops sharply to 2.15 in 2017, and then climbs to 2.41 by 2019. The rising leverage ratios up to 2016 suggest increased reliance on debt or other liabilities relative to equity, which then reverses in 2017 indicating a deleveraging phase before moderate increases in subsequent years.

Overall, the data depicts a period of asset contraction accompanied by fluctuating equity levels and significant leverage ratio changes. The peak financial leverage in 2016 coincides with the lowest equity levels and total assets, possibly reflecting strategic financial restructuring or operational challenges at that time. Subsequent partial recoveries in assets and equity alongside moderate leverage reductions suggest an effort towards financial stabilization and balance sheet strengthening in later years.

Total Assets

Declined from 2014 to 2017, followed by partial recovery through 2019.

Common Stockholders’ Equity

Decreased sharply till 2016, rebounded in 2017-2018, slightly declined in 2019.

Financial Leverage

Increased to a peak in 2016, then decreased substantially in 2017, with a moderate rise thereafter.

Adjusted vs. Reported Figures

Adjusted values closely mirror reported figures, suggesting consistent impacts from income tax adjustments on the financial measures.

The data reveals several noteworthy trends in the financial performance and position over the six-year period.

Net Earnings

Reported net earnings common stockholders show fluctuations with a peak in 2015 at 2,710 million USD, followed by a considerable decline in 2016 and 2017, reaching the lowest point at 1,518 million USD in 2017. After this period, earnings recovered significantly in 2018 and 2019, reaching 2,306 million USD.

Adjusted net earnings exhibit a similar pattern, peaking slightly below reported figures in 2015 and following the same downward and upward trajectory. The adjusted figures consistently remain somewhat lower than the reported net earnings, indicating adjustments for deferred taxes or other factors have a moderating effect on earnings.

Common Stockholders’ Equity

Reported common stockholders’ equity displays a declining trend from 2014 (10,119 million USD) to 2016 (7,568 million USD), then partial recovery during 2017 and 2018, but declines again in 2019 to 8,233 million USD. This indicates some volatility and erosion in shareholders’ equity over the period.

Adjusted common stockholders’ equity follows a closely similar pattern, consistently slightly higher than the reported figures, reflecting the impact of adjustments possibly linked to deferred income taxes. The fluctuations likewise suggest variability in equity levels and possible impacts from earnings volatility or other balance sheet changes.

Return on Equity (ROE)

Reported ROE peaks dramatically in 2015 at 33.54%, then declines steadily through 2017 to 17.41%, rebounding to 28.01% in 2019. This suggests a period of exceptional profitability relative to equity in 2015, followed by a decline and partial recovery.

Adjusted ROE trends are similar but consistently somewhat lower than reported ROE, indicating that adjustments reduce the profitability measure slightly. The 2015 peak remains prominent at 33.14%, with a low in 2017 at 16.3%, and an increase to 26.68% by 2019.

Overall, the company experienced significant earnings and equity fluctuations within the period, with 2015 as a peak performance year followed by a downturn until 2017, after which a recovery phase occurred through 2019. The adjustments related to deferred income taxes consistently reduce earnings, equity, and ROE, but do not significantly alter the broader trend patterns observed. The volatility in equity and profitability metrics may warrant further investigation into underlying business or market factors during these years.

The analyzed financial data indicates fluctuating trends in both earnings and asset base over the six-year period.

Net Earnings

Reported net earnings for common stockholders showed a peak in 2015 at 2,710 million US dollars, followed by a significant decline in 2016 and 2017, reaching a low of 1,518 million US dollars. Earnings recovered substantially in 2018 and 2019, rising to 2,203 million and 2,306 million US dollars respectively. Adjusted net earnings exhibit a similar pattern, though the adjusted figures are consistently slightly lower than reported, reflecting the impact of income tax adjustments or other non-recurring items. The lowest adjusted earnings were observed in 2017 at 1,476 million US dollars, with a subsequent increase to 2,258 million US dollars by 2019.

Total Assets

Reported total assets declined steadily from 24,177 million US dollars in 2014 to 19,589 million US dollars in 2017, indicating a contraction in the asset base during this period. There was a modest recovery in 2018 and 2019, with assets increasing marginally to approximately 20,497 million US dollars by 2019. Adjusted total assets mirror this trend closely but consistently report slightly lower values than the reported figures, suggesting adjustments likely related to deferred tax balances or similar adjustments.

Return on Assets (ROA)

Reported ROA followed a trend correlating with changes in net earnings and total assets. It increased from 8.88% in 2014 to a peak of 12.27% in 2015, then decreased sharply to around 7.5% in 2016 and 2017. ROA then rose again in the following two years reaching 11.25% in 2019. Adjusted ROA values are marginally lower than reported, consistent with the adjustments noted in earnings and assets. The adjusted ROA also peaked in 2015 at 12.33%, declined to about 7.6% in 2016, and gradually improved to 11.07% by 2019.

Overall, the data reveals a cyclical pattern with a peak in profitability and returns in 2015, followed by a downturn from 2016 to 2017, and a recovery phase in 2018 and 2019. The adjusted figures illustrate the effect of tax and accounting adjustments on financial performance measures but maintain the same directional trends as the reported data. The decline and subsequent recovery in total assets suggests strategic shifts or restructuring affecting the asset base during the period.