Fidelity National Information Services Inc. (NYSE:FIS)

The analysis of the annual financial data reveals several notable trends and shifts in asset composition over the five-year period.

Cash and Cash Equivalents

There is a consistent increase in cash and cash equivalents from 703 million US dollars in 2018 to 2,188 million in 2022, indicating improved liquidity and cash management over time.

Settlement Deposits and Merchant Float

Settlement deposits peaked in 2019 at 1,363 million but subsequently declined to 492 million by 2022. Conversely, merchant float, absent in 2018 data, has shown a steady rise from 1,519 million in 2019 to 2,625 million in 2022, suggesting a shift in settlement asset structure.

Settlement Receivables and Settlement Assets

Settlement receivables experienced strong growth throughout the period, nearly tenfold from 281 million in 2018 to 2,738 million in 2022. Settlement assets similarly increased substantially from 981 million in 2018 to 5,855 million in 2022, reflecting expanding settlement-related asset bases.

Receivables and Other Current Assets

Trade receivables increased markedly from 1,472 million in 2018 to a peak of 3,772 million in 2021, with a slight decrease to 3,699 million in 2022. Other receivables and prepaid expenses both exhibit moderate growth, indicating stable increases in current asset categories.

Overall Current Assets

Total current assets more than tripled from 3,733 million in 2018 to 12,818 million in 2022, demonstrating significant growth in short-term assets supporting operational liquidity.

Property, Equipment, and Software

Property and equipment net values increased from 587 million in 2018 to 900 million in 2019 but then fluctuated modestly, ending at 862 million in 2022. Software assets followed a growth trajectory from 1,795 million to around 3,200 million across the period, stabilizing in the latter years.

Goodwill and Intangible Assets

Goodwill surged dramatically from 13,545 million in 2018 to over 52,000 million in 2019 through 2021, then declined sharply to 34,276 million in 2022, indicating significant acquisition activity followed by impairment or divestiture. Intangible assets, net, increased considerably in 2019 but steadily declined thereafter to 8,956 million in 2022, consistent with amortization or asset write-downs.

Operating Lease Right-of-Use Assets and Equity Security Investments

Operating lease ROU assets appeared starting 2019 at 564 million and decreased consistently to 313 million in 2022, reflecting the amortization of leased asset rights. Equity security investments were negligible until 2020, then gradually increased to 393 million by 2022.

Visa Europe and CVR Related Assets

These assets present variability, peaking in 2019 and fluctuating thereafter with a notable decline by 2022 to 55 million, implying partial realization or reassessment of these asset values.

Derivatives and Other Noncurrent Assets

Derivatives were recorded in 2021 and 2022 with amounts around 330-340 million. Other noncurrent assets rose sharply in 2019, then fell slightly but remained substantial, indicating reclassification or valuation adjustments in these asset categories.

Contract-Related Costs

Contract costs on implementations in progress and contract origination costs both exhibit steady increases, reflecting ongoing investment in contract execution. Contract fulfillment costs are more stable but show some growth toward 2022. Deferred contract costs also increased consistently, suggesting expanded deferred revenue or contract-related asset recognition.

Total Noncurrent Assets and Total Assets

Noncurrent assets peaked substantially in 2019 above 75,000 million and decreased to 50,460 million in 2022, indicating large asset adjustments post-2019. Total assets followed a similar pattern, rising sharply from 23,770 million in 2018 to over 83,000 million in 2019-2020, then declining to 63,278 million in 2022. This trend suggests major acquisitions or revaluations in 2019 followed by subsequent asset disposals or impairments.