Fidelity National Information Services Inc. (NYSE:FIS)

The data reveals a consistent upward trend in both current assets and adjusted current assets over the five-year period from 2018 to 2022. Specifically, current assets increased steadily from 3,733 million US dollars at the end of 2018 to 12,818 million US dollars by the end of 2022. This represents a significant growth trajectory, indicating an expansion in the company's short-term asset base.

Similarly, adjusted current assets have shown a parallel increase, starting at 3,750 million US dollars in 2018 and rising to 12,893 million US dollars in 2022. The slight difference between current assets and adjusted current assets across the years suggests that adjustments made do not materially impact the overall asset figures but maintain a close alignment.

Trend Analysis

The company's current assets more than tripled over the examined period. The year-on-year growth is consistent, signifying effective asset accumulation or management strategies. Adjusted current assets follow this pattern closely, supporting the reliability of the valuation techniques applied.

Insights

The steady increase in these asset categories may indicate improved liquidity and operational capacity. This growth could enhance the company's ability to meet short-term obligations and fund daily operations more comfortably.

Considerations

While the rising asset figures are positive indicators, the analysis would benefit from complementary data such as current liabilities and ratios related to liquidity and working capital to gain a fuller understanding of financial health and operational efficiency.

The annual financial data reveals significant fluctuations in both total assets and adjusted total assets over the five-year period.

Total assets

The total assets increased sharply from US$23,770 million in 2018 to US$83,806 million in 2019, representing a substantial growth. This high level was largely maintained in 2020 and 2021, with values of US$83,842 million and US$82,931 million respectively. However, a notable decline occurred in 2022, with total assets dropping to US$63,278 million, suggesting a contraction in asset base during that last year.

Adjusted total assets

Adjusted total assets followed a similar trend as total assets, rising steeply from US$24,189 million in 2018 to US$83,828 million in 2019. The level remained relatively stable through 2020 and 2021, with minor fluctuations within a narrow range (US$83,884 million in 2020 and US$82,958 million in 2021). In 2022, adjusted total assets decreased to US$63,320 million, mirroring the decline observed in total assets.

Overall, the data indicates a period of rapid asset growth between 2018 and 2019, followed by a stabilization phase over the subsequent two years. The decline in both total and adjusted total assets in 2022 marks a departure from the previous pattern of stability and may warrant further investigation to understand underlying factors driving this reduction.

The financial data reveals a consistent upward trend in both current liabilities and adjusted current liabilities over the examined five-year period.

Current Liabilities

Current liabilities increased from 3,125 million US dollars in 2018 to 16,224 million US dollars in 2022, representing more than a fivefold increase. The growth was steady each year with significant jumps observed particularly between 2018 and 2019, where the figure more than tripled. This trend indicates a rising obligation to settle short-term debts or liabilities within one year, which may be associated with increased operational scale or greater short-term financing requirements.

Adjusted Current Liabilities

Adjusted current liabilities also exhibited a growth trend, rising from 2,386 million US dollars in 2018 to 15,436 million US dollars in 2022. Although the adjusted figures are consistently lower than the unadjusted current liabilities, the pattern of annual increase mirrors that of the current liabilities. The adjustment likely accounts for certain non-operational or extraordinary items, suggesting that the underlying short-term liabilities have expanded significantly over time.

Overall, the increase in both current liabilities and adjusted current liabilities signals an expansion in short-term financial commitments. This may reflect either an aggressive growth strategy necessitating higher working capital or potentially increased reliance on short-term funding sources. The absence of contrasting data points such as current assets or liquidity ratios limits a comprehensive assessment of the company’s ability to cover these liabilities, but the rising trend underscores the need for ongoing monitoring of liquidity management and debt servicing capacity.

Total liabilities

Total liabilities showed a significant increase from 2018 to 2019, rising sharply from approximately 13.5 billion US dollars to over 34 billion US dollars. From 2019 onwards, total liabilities remained relatively stable, with only minor incremental increases each year through 2022. The period between 2019 and 2022 exhibits a plateauing trend, with total liabilities increasing marginally from 34.35 billion to 35.87 billion US dollars.

Adjusted total liabilities

Adjusted total liabilities followed a similar pattern, increasing markedly between 2018 and 2019 from around 11.8 billion US dollars to 29.2 billion US dollars. After this sharp rise, the adjusted figure showed modest increases annually up to 31.37 billion US dollars in 2022. The growth rate in adjusted liabilities after 2019 was relatively moderate compared to the large jump seen in the prior year, indicating a stabilization phase in the company's adjusted liabilities.

Overall trends and insights

The pronounced increase in both total and adjusted liabilities between 2018 and 2019 is noteworthy, suggesting a significant financing event, acquisition, or accounting adjustment during that period. Following this, the liabilities exhibit a steady but slow growth, indicating controlled management of debt levels. The convergence of trends in both total and adjusted liabilities reflects consistent adjustments and reporting practices. No data anomalies or reversals are apparent, and the company appears to have maintained a stable liability position post-2019 with moderate increases aligning with potential business growth or inflationary pressures.

The financial data reveals significant fluctuations in the equity positions over the five-year period examined. Both the total stockholders’ equity and the adjusted total equity demonstrate notable trends reflecting changes in the company’s financial structure.

Total FIS stockholders’ equity

At the start of the period, the equity was valued at approximately $10.2 billion. There was an extraordinary increase in 2019, reaching nearly $49.4 billion. This elevated level was essentially maintained through 2020 and 2021, with slight decreases to $49.3 billion and $47.3 billion respectively. However, by the end of 2022, the equity sharply declined to approximately $27.2 billion.

Adjusted total equity

The adjusted total equity started at $12.4 billion in 2018 and followed a similar pattern to total stockholders’ equity with a substantial increase in 2019 to about $54.6 billion. It remained relatively stable through 2020 and 2021, at $54.5 billion and $52.7 billion respectively, before experiencing a significant decrease to $31.9 billion in 2022.

The pronounced surge between 2018 and 2019 suggests a major financing event or transaction impacting equity accounts. The maintenance of elevated levels during 2019-2021 indicates a period of equity stability. The sharp declines in 2022 for both metrics point towards a potential restructuring, asset write-down, share repurchase, or other significant financial adjustments.

In summary, the equity figures display substantial volatility, with a dramatic rise followed by a considerable fall. The adjusted total equity consistently exceeds the reported total stockholders’ equity, suggesting adjustments for items such as goodwill, intangible assets, or other comprehensive income components. Overall, the data shows a company undergoing considerable changes in its equity base, which merits further investigation into underlying transactions and financial activities during these years.

The financial data over the five-year period exhibits significant fluctuations in the capital structure components, notably debt and equity.

Total reported debt

Debt increased sharply from 8,985 million US dollars in 2018 to 20,192 million in 2019, then stabilized around the 20,000 million mark through 2022, suggesting a major borrowing event or reclassification between 2018 and 2019. The debt levels remained relatively constant thereafter.

Total FIS stockholders’ equity

Equity initially increased substantially from 10,215 million in 2018 to a peak of 49,440 million in 2019, then showed a marginal decline to 47,347 million in 2021 before dropping sharply to 27,218 million in 2022. This decline in 2022 represents a notable reduction in shareholders' equity, indicating possible losses, distributions, or asset revaluations impacting equity.

Total reported capital

The total capital, combining debt and equity, mirrors the trend in equity with a sharp rise from 19,200 million in 2018 to 69,632 million in 2019. Subsequently, it declined gradually to 67,700 million in 2021 and sharply fell to 47,355 million in 2022, reflecting the downturn in equity while debt remained stable.

Adjusted total debt

The adjusted debt figures closely follow the reported debt trend, showing a significant increase from 9,419 million in 2018 to 20,787 million in 2019, then maintaining levels just above 20,000 million through 2022. This consistency indicates that adjustments to the debt figures did not dramatically alter the overall debt trend.

Adjusted total equity

Adjusted equity also peaked in 2019 at 54,628 million after rising from 12,373 million in 2018, then showed a steady decline to 31,951 million by 2022. The decline in adjusted equity is less steep compared to the reported equity, but still indicates a significant decrease over the last two years.

Adjusted total capital

The adjusted capital shows a similar pattern to reported capital, with a rise from 21,792 million in 2018 to 75,415 million in 2019, followed by a gradual decrease to 73,583 million in 2021 and a substantial reduction to 52,502 million in 2022. This decline corresponds to the reduction in adjusted equity while adjusted debt remains stable.

Overall, the data reflects a major capital restructuring or financing transaction between 2018 and 2019, with large increases in both debt and equity. Since then, the company maintained stable debt levels while experiencing a gradual and then sharp decrease in equity, leading to a corresponding reduction in total capital. These trends suggest potential challenges in profitability or asset valuation impacts affecting equity from 2020 onwards, especially noticeable in 2022.

Revenue

Revenue demonstrates a consistent upward trend over the five-year period. Starting at $8,423 million in 2018, it increased steadily each year, reaching $14,528 million by the end of 2022. This represents a cumulative growth of approximately 72.4% over the period. The year-over-year growth rates appear to be strong and relatively stable, indicating sustained business expansion.

Adjusted Revenue

The adjusted revenue closely tracks the reported revenue figures throughout the timeline, starting at $8,347 million in 2018 and rising to $14,527 million by 2022. The minimal difference between revenue and adjusted revenue in each year suggests that adjustments made for non-recurring or special items were relatively small and did not significantly affect the overall revenue trend. Adjusted revenue growth mirrors the pattern observed in total revenue, confirming consistent operational performance without major distortions.

The annual financial data reveals significant fluctuations in both net earnings attributable to common stockholders and adjusted net earnings over the five-year period ending December 31, 2022.

Net Earnings (Loss) Attributable to FIS Common Stockholders (in millions USD)

The net earnings demonstrate a declining trend initially, dropping sharply from 846 million in 2018 to 158 million in 2020. This was followed by a moderate recovery to 417 million in 2021. However, the period concludes with a substantial and severe loss of 16,720 million in 2022, indicating a significant adverse event or extraordinary circumstance impacting profitability in the final year.

Adjusted Net Earnings (Loss) (in millions USD)

Adjusted net earnings also exhibit volatility similar to the net earnings pattern. The adjusted figure decreased from 509 million in 2018, surged to 691 million in 2019, plummeted to 136 million in 2020, then rebounded to 538 million in 2021. The year 2022 records a pronounced loss of 17,847 million, consistent with the net earnings loss and suggesting that even adjustments did not mitigate the impact of the negative factors that year.

Overall, the data indicate an unstable profitability profile characterized by fluctuations and a dramatic downturn in 2022, which overshadows prior years' performance and underscores a critical need for in-depth analysis of the underlying causes for this loss.