Stock Analysis on Net

Fidelity National Information Services Inc. (NYSE:FIS)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 2, 2023.

Financial Reporting Quality: Aggregate Accruals

Microsoft Excel

Paying user area

The data is hidden behind: . Unhide it.

  • Get full access to the entire website from $10.42/mo, or

  • get 1-month access to Fidelity National Information Services Inc. for $22.49.

This is a one-time payment. There is no automatic renewal.


We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Balance-Sheet-Based Accruals Ratio

Fidelity National Information Services Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Operating Assets
Total assets
Less: Cash and cash equivalents
Operating assets
Operating Liabilities
Total liabilities
Less: Short-term borrowings
Less: Current portion of long-term debt
Less: Long-term debt, excluding current portion
Operating liabilities
 
Net operating assets1
Balance-sheet-based aggregate accruals2
Financial Ratio
Balance-sheet-based accruals ratio3
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
Balance-Sheet-Based Accruals Ratio, Sector
Software & Services
Balance-Sheet-Based Accruals Ratio, Industry
Information Technology

Based on: 10-K (reporting date: 2022-12-31), 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).

1 2022 Calculation
Net operating assets = Operating assets – Operating liabilities
= =

2 2022 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2022 – Net operating assets2021
= =

3 2022 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × ÷ [( + ) ÷ 2] =

4 Click competitor name to see calculations.


Net Operating Assets
The net operating assets demonstrated a declining trend over the observed period. Starting at approximately $68,496 million at the end of 2019, the figure slightly decreased to $67,543 million in 2020 and further to $65,875 million in 2021. A substantial reduction was observed in 2022, with net operating assets falling sharply to approximately $45,355 million. This significant decline in the final year may suggest either asset disposals, efficiency improvements, or other operational changes impacting asset levels.
Balance-Sheet-Based Aggregate Accruals
Aggregate accruals showed considerable variation over the timeframe. In 2019, the value was notably positive at $49,992 million, indicating a strong accrual component. However, from 2020 onwards, the accruals became negative. The negative value deepened slightly to -$953 million in 2020, marginally increased its negative position to -$1,668 million in 2021, and then significantly dropped to -$20,520 million in 2022. This progression toward increasingly negative accruals implies a shift in the company's earnings quality or accounting practices, potentially reflecting more conservative revenue or expense recognition.
Balance-Sheet-Based Accruals Ratio
The accruals ratio mirrored the aggregate accruals' trend and displayed a sharp change in financial reporting quality. A very high positive ratio of 114.92% at the end of 2019 converted into negative ratios afterwards: -1.4% in 2020, -2.5% in 2021, and a significant drop to -36.9% in 2022. The substantial decline to a negative ratio in the most recent year further highlights a major shift in accrual accounting, which may influence the assessment of earnings persistence and reliability.

Cash-Flow-Statement-Based Accruals Ratio

Fidelity National Information Services Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net earnings (loss) attributable to FIS common stockholders
Less: Net cash provided by operating activities
Less: Net cash used in investing activities
Cash-flow-statement-based aggregate accruals
Financial Ratio
Cash-flow-statement-based accruals ratio1
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Accenture PLC
Adobe Inc.
Cadence Design Systems Inc.
CrowdStrike Holdings Inc.
Fair Isaac Corp.
International Business Machines Corp.
Intuit Inc.
Microsoft Corp.
Oracle Corp.
Palantir Technologies Inc.
Palo Alto Networks Inc.
Salesforce Inc.
ServiceNow Inc.
Synopsys Inc.
Workday Inc.
Cash-Flow-Statement-Based Accruals Ratio, Sector
Software & Services
Cash-Flow-Statement-Based Accruals Ratio, Industry
Information Technology

Based on: 10-K (reporting date: 2022-12-31), 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).

1 2022 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × ÷ [( + ) ÷ 2] =

2 Click competitor name to see calculations.


Net Operating Assets
The net operating assets consistently decreased over the observed period, declining from 68,496 million US dollars in 2019 to 45,355 million US dollars in 2022. This indicates a reduction of approximately 33.8% over four years, suggesting a significant contraction in operating asset base.
Cash-Flow-Statement-Based Aggregate Accruals
The aggregate accruals demonstrated a pronounced shift from positive to negative values. In 2019, the figure was 5,389 million US dollars, transitioning to negative figures in subsequent years. By 2022, the accruals reached a notably large negative value of -20,286 million US dollars, evidencing increasing discrepancies between reported earnings and actual cash flows.
Cash-Flow-Statement-Based Accruals Ratio
The accruals ratio reflected a significant adverse trend. Starting at 12.39% in 2019, it became negative in 2020 (-4.95%) and continued to worsen, reaching -36.48% in 2022. This substantial decline implies deteriorating quality of earnings, with a growing portion of earnings not supported by cash flows.