Fidelity National Information Services Inc. (NYSE:FIS)

Total Asset Turnover

The reported and adjusted total asset turnover ratios indicate a decline from 0.35 in 2018 to a low point of 0.12 in 2019, followed by a gradual recovery to 0.23 by 2022. This trend suggests an initial decrease in the efficiency with which assets generate revenue, then a partial improvement over the later years.

Current Ratio

Both reported and adjusted current ratios show a downward trend from 2018 through 2021, moving from above 1.19 (reported) and 1.57 (adjusted) to lows near or below 0.8, indicating decreasing short-term liquidity. A slight recovery is observed in 2022, with ratios increasing to 0.79 (reported) and 0.84 (adjusted), but still remaining below the generally accepted benchmark of 1.0.

Debt to Equity Ratio

The reported and adjusted debt to equity ratios exhibit a significant decrease from 2018 (0.88 and 0.76 respectively) down to approximately 0.4 in 2019-2021, implying reduced leverage during that period. However, a notable increase occurs in 2022, rising to 0.74 (reported) and 0.64 (adjusted), indicating a return to higher leverage levels.

Debt to Capital Ratio

Debt to capital ratios follow a similar pattern to debt to equity, declining from 0.47/0.43 in 2018 to around 0.27-0.3 in the 2019-2021 period, then increasing again to 0.43 (reported) and 0.39 (adjusted) in 2022. This suggests a reduction in the proportion of debt financing relative to total capital initially, followed by increased reliance on debt.

Financial Leverage

Reported financial leverage decreases from 2.33 in 2018 to around 1.7-1.75 between 2019 and 2021, before rising sharply to 2.32 in 2022. Adjusted financial leverage mirrors this trend, declining to about 1.53-1.57 before increasing to 1.98 in 2022. This indicates changes in the company’s capital structure toward higher leverage after a period of deleveraging.

Net Profit Margin

The net profit margin shows a sharp decline over the period analyzed. Reported margins fall from 10.04% in 2018 to marginal levels between 0.8% and 3% up to 2021, then plunge dramatically to -115.09% in 2022. The adjusted net margin follows a similar trajectory, though it starts lower and also falls to -122.85% in 2022. This indicates a severe deterioration in profitability in the last fiscal year reviewed.

Return on Equity (ROE)

ROE exhibits a steep decline from moderate positive levels in 2018 (8.28% reported, 4.11% adjusted) to minimal returns between 2019 and 2021 (below 1.5%), before collapsing to large negative values in 2022 (-61.43% reported, -55.86% adjusted). This highlights a significant loss of shareholder value in the most recent year.

Return on Assets (ROA)

ROA parallels the ROE pattern, falling from 3.56% (reported) and 2.1% (adjusted) in 2018 to near zero in the 2019-2021 period, followed by a substantial negative return in 2022 (-26.42% reported, -28.19% adjusted). This reflects declining asset profitability culminating in large losses recently.

The financial data over the five-year period reveals several notable trends concerning revenue, total assets, and asset turnover ratios.

Revenue

There is a consistent upward trajectory in revenue from 2018 to 2022, increasing from US$8,423 million in 2018 to US$14,528 million in 2022. This steady growth indicates an expanding business scale or improved sales performance over the years.

Total Assets

Total assets exhibit a different pattern compared to revenue. Starting at US$23,770 million in 2018, assets surged sharply to approximately US$83,800 million by 2019 and remained relatively stable through 2021. However, in 2022, total assets declined significantly to US$63,278 million. This fluctuation suggests major asset acquisitions or restructuring around 2019 with a subsequent downsizing or asset divestiture in 2022.

Reported Total Asset Turnover

This ratio measures the efficiency of the company in using its assets to generate revenue. It declined from 0.35 in 2018 to 0.12 in 2019, reflecting the rapid increase in assets without proportional revenue growth. Subsequently, the ratio incrementally improved through 2020 to 2022, reaching 0.23, indicating a gradual improvement in asset utilization efficiency after the asset base stabilized and revenue continued to grow.

Adjusted Revenue and Adjusted Total Assets

The adjusted figures follow patterns very similar to the reported numbers, confirming the reliability of the trends observed in revenue and total assets. Adjusted revenue increased steadily from US$8,347 million in 2018 to US$14,527 million in 2022, while adjusted total assets peaked around 2019-2021 and declined in 2022, mirroring the reported total assets behavior.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio mirrors the reported ratio trend, verifying the improvement in asset utilization post-2019 after a significant asset increase. Both metrics indicate a rising efficiency in generating revenue from assets between 2020 and 2022.

In summary, revenue growth has been strong and steady over the period despite significant fluctuations in total assets. The marked increase in assets in 2019 followed by a substantial reduction in 2022 appears to have initially lowered asset turnover ratios, which later recovered as assets decreased and revenue continued to grow. This pattern suggests strategic asset management with an eventual focus on improving operational efficiency and asset utilization.

The financial data reveals notable trends in the company's liquidity position over the five-year period ending December 31, 2022. Both current assets and current liabilities increased substantially, with current assets rising from $3,733 million in 2018 to $12,818 million in 2022, and current liabilities escalating from $3,125 million to $16,224 million during the same timeframe.

Despite the growth in current assets, the reported current ratio demonstrates a declining trend, moving from a healthier level of 1.19 in 2018 down to a low of 0.74 in 2021, before slightly recovering to 0.79 in 2022. This suggests that the rate of increase in current liabilities has outpaced the growth of current assets, adversely impacting the company's short-term liquidity as measured by the reported current ratio.

The adjusted figures for current assets and current liabilities, which presumably account for some refinements or exclusions, exhibit a similar pattern. Adjusted current assets increased from $3,750 million in 2018 to $12,893 million in 2022, while adjusted current liabilities rose from $2,386 million to $15,436 million in the same period. Correspondingly, the adjusted current ratio declined from 1.57 in 2018 to 0.79 by 2021, followed by a marginal improvement to 0.84 in 2022. This substantiates the trend observed in the reported current ratio, confirming that even after adjustments, the company’s liquidity position has weakened over the assessed period.

Overall, the analysis indicates a consistent expansion in both current assets and current liabilities; however, current liabilities have grown at a faster pace, leading to a deterioration in liquidity ratios. Although there is a slight recovery in the ratios in the last reported year, the levels remain below those seen at the beginning of the period, signaling potential short-term liquidity concerns that may warrant attention.

Total Debt

The total debt experienced a significant increase from 2018 to 2019, rising from approximately $8.99 billion to around $20.19 billion. Subsequently, total debt remained relatively stable, fluctuating slightly between $20.0 billion and $20.4 billion through 2022.

Total FIS Stockholders’ Equity

Equity showed a strong upward trend from 2018, increasing substantially to approximately $49.44 billion in 2019. It then held steady near this level in 2020 and 2021 with a slight decline, but dropped markedly to about $27.22 billion in 2022.

Reported Debt to Equity Ratio

The debt to equity ratio decreased significantly from 0.88 in 2018 to around 0.41 by 2019 and remained stable near this level through 2020 and 2021. In 2022, the ratio increased notably to 0.74, indicating increased leverage relative to equity during the last year.

Adjusted Total Debt

The adjusted total debt mirrored the trend in total debt, with a sharp rise from 2018 to 2019, climbing from about $9.42 billion to $20.79 billion. It stayed relatively constant, with minor variations, through 2022 ending near $20.55 billion.

Adjusted Total Equity

Adjusted equity also grew robustly from 2018 to 2019, increasing to $54.63 billion. It remained fairly stable during 2020 and 2021 with a slight decline, followed by a significant drop in 2022 to approximately $31.95 billion.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio declined from 0.76 in 2018 to 0.38 in 2019 and stabilized near this value through 2020 and 2021. It then rose to 0.64 in 2022, indicating an increase in relative indebtedness compared to equity in that year.

The financial data exhibits several notable trends over the five-year period examined. Total debt experienced a significant increase from 2018 to 2019, more than doubling from $8,985 million to approximately $20,192 million. Following this sharp rise, the total debt levels stabilized around $20 billion, with slight fluctuations through 2022.

Total capital followed a different trajectory. Initially, it surged dramatically from $19,200 million in 2018 to $69,632 million in 2019, maintaining a relatively stable and high level near $69,000 million through 2020, then showing a gradual decline onwards to approximately $47,355 million by 2022. This indicates a contraction in capital in the last two years after a period of elevated capital base.

The reported debt to capital ratio reveals a clear shift in leverage dynamics. The ratio declined markedly from 0.47 in 2018 to 0.29 in 2019 and remained stable near 0.29-0.30 through 2021. In 2022, the ratio increased noticeably to 0.43, suggesting a rise in leverage relative to capital.

When considering the adjusted figures, the adjusted total debt closely aligns with reported total debt values, confirming the accuracy of the debt measurement over time with a similar pattern: a sharp increase in 2019 and stable values thereafter.

Adjusted total capital mirrors the trend seen in reported total capital, with a peak around 2019 and 2020, followed by a decline in subsequent years. This results in adjusted debt to capital ratios that are slightly lower than reported ones, but show parallel trends; declining leverage ratios from 2018 to 2020, stable ratios in 2021, and a pronounced increase in 2022.

Debt Levels

Sharp increase from 2018 to 2019, then stable around $20 billion thereafter.

Capital Base

Significant growth in 2019 followed by gradual decline from 2020 to 2022, reducing capital levels by over 30% from peak.

Leverage Ratios

Reported and adjusted debt to capital ratios declined initially, indicating improved leverage, but increased again in 2022, suggesting rising financial leverage.

Overall Insight

The data suggests a strategic increase in capital and controlled debt levels around 2019-2020, improving the company’s leverage position. However, recent trends show a reduction in capital and increased leverage, which may indicate a shift towards higher financial risk or changes in capital structure priorities.

The financial data over the five-year period demonstrates notable fluctuations in both asset base and equity levels, accompanied by changes in financial leverage metrics.

Total Assets

The total assets exhibited a substantial increase from 2018 to 2019, rising sharply from approximately 23.8 billion US dollars to over 83.8 billion US dollars. The asset level remained relatively stable through 2020 and 2021, slightly decreasing from 83.8 billion to 82.9 billion before experiencing a significant decline in 2022 to approximately 63.3 billion. This indicates a major contraction in asset holdings in the most recent year after a period of stabilization.

Total FIS Stockholders' Equity

Stockholders' equity followed a similar trend, increasing dramatically from about 10.2 billion in 2018 to nearly 49.4 billion in 2019. Equity levels then remained comparatively steady through 2020 and 2021, with a slight downward trend from 49.3 billion to 47.3 billion, before dropping sharply to 27.2 billion in 2022. This sharp drop in 2022 equity aligns with the decline observed in total assets, suggesting a significant reduction in company net worth in the latest year.

Reported Financial Leverage

The reported financial leverage ratio, calculated as the ratio between total assets and equity, decreased from 2.33 in 2018 to 1.7 in 2019 and remained stable through 2020. It showed a minor increase in 2021 to 1.75, then climbed back to 2.32 in 2022. This indicates that the company initially deleveraged significantly in 2019, maintaining a lower leverage profile until 2022, when leverage returned to near 2018 levels amidst the decline in equity.

Adjusted Total Assets

The adjusted total assets closely mirror the trend in reported total assets, showing the same sharp increase from 2018 to 2019, followed by stability in 2020 and 2021 and a pronounced decrease in 2022. The values are marginally higher than the reported figures, suggesting some adjustments increasing the asset base slightly in each period.

Adjusted Total Equity

Adjusted total equity also follows the same pattern as the reported equity, with a large increase from 2018 to 2019, steady levels through 2020 and 2021, then a significant reduction in 2022. The adjusted values are somewhat higher than the reported figures across all years, indicating that adjustments increased equity measurements slightly but did not alter the overall trend.

Adjusted Financial Leverage

This ratio shows a decline from 1.95 in 2018 to roughly 1.53-1.54 through 2019 and 2020, followed by a small rise to 1.57 in 2021, then an increase to 1.98 in 2022. The adjusted leverage ratio remains below the reported leverage ratio for each year, reflecting that adjustments to assets and equity result in a somewhat lower leverage depiction but maintain the overall trajectory of initial deleveraging and later increased leverage.

In summary, the data reveals a significant expansion in both assets and equity between 2018 and 2019, indicating a transformative growth or acquisition event. Following this, the company sustained relatively stable levels until 2021, after which both assets and equity contracted sharply in 2022. The leverage ratios demonstrate an initial effort to reduce financial leverage that reversed in the last reported year, returning leverage closer to previous higher levels. Adjustments to assets and equity modify absolute values but do not change the observed trends.

Revenue Trends

Revenue showed a consistent increase over the five-year period, growing from $8,423 million in 2018 to $14,528 million in 2022. This represents a steady upward trajectory, with the largest annual increase occurring between 2019 and 2020.

Net Earnings (Loss) Attributable to Common Stockholders

Net earnings experienced significant volatility. Starting at $846 million in 2018, earnings sharply declined to $298 million in 2019 and further down to $158 million in 2020. There was a partial recovery in 2021 with earnings rising to $417 million. However, 2022 marked a substantial loss of $16,720 million, indicating severe financial difficulties or one-time extraordinary charges affecting profitability.

Reported Net Profit Margin

The reported net profit margin decreased notably over the period. From a healthy 10.04% in 2018, it dropped to low single digits in the following years, reaching 3% in 2021. The margin turned dramatically negative in 2022, reflecting the large net loss recorded and suggesting significant operational or financial distress.

Adjusted Net Earnings (Loss)

The adjusted net earnings followed a general downward trend from $509 million in 2018 to $136 million in 2020, with a recovery to $538 million in 2021. Adjusted figures show a pronounced negative adjustment in 2022 with a loss of $17,847 million, reinforcing the pattern seen in reported net earnings and indicating the presence of substantial non-recurring or adjustment items impacting the year’s results.

Adjusted Revenue

Adjusted revenue trends closely mirror the reported revenue figures, increasing steadily from $8,347 million in 2018 to $14,527 million in 2022, underscoring consistent business growth despite profitability challenges.

Adjusted Net Profit Margin

Adjusted net profit margin declined from 6.1% in 2018 to a low of 1.08% in 2020, followed by a slight rebound to 3.87% in 2021. It then plummeted to a negative 122.85% in 2022, highlighting a critical deterioration in profitability after adjustments, consistent with the large adjusted net loss.

Summary

Overall, the data indicates sustained revenue growth over the period but sharply declining profitability, culminating in substantial losses in 2022. Both reported and adjusted earnings and profit margins exhibit significant negative swings, suggesting major challenges in cost management, extraordinary expenses, or market conditions significantly affecting the company’s financial health in the most recent year.

The analysis of the financial data reveals significant fluctuations over the five-year period from 2018 to 2022. Net earnings attributable to common stockholders show a positive but declining trend from 2018 to 2020, with values decreasing from 846 million USD in 2018 to 158 million USD in 2020. A modest recovery appears in 2021 with earnings of 417 million USD, followed by a sharp decline to a substantial loss of 16,720 million USD in 2022.

Total stockholders’ equity experiences considerable growth between 2018 and 2019, soaring from 10,215 million USD to 49,440 million USD. Subsequently, it remains relatively stable through 2020 and 2021, with slight decreases, before dropping to 27,218 million USD in 2022.

The reported return on equity (ROE) follows a pattern consistent with net earnings, starting at 8.28% in 2018 and sharply declining each year to 0.32% in 2020. A minor improvement to 0.88% occurs in 2021, but ROE drastically falls to -61.43% in 2022, reflecting the significant net loss and equity reduction.

Adjusted net earnings display moderate variability, rising from 509 million USD in 2018 to 691 million USD in 2019, dropping sharply to 136 million USD in 2020, and rebounding to 538 million USD in 2021. The adjusted figure likewise records a profound loss in 2022, reaching -17,847 million USD.

Adjusted total equity aligns with the pattern observed in total equity, increasing notably from 12,373 million USD in 2018 to 54,628 million USD in 2019. The values hold steady at approximately 54,000 million USD in 2020, followed by a slight decrease in 2021, and a pronounced decline to 31,951 million USD in 2022.

Adjusted return on equity follows the net earnings and adjusted net earnings trajectory. Starting at 4.11% in 2018, it decreases to 0.25% by 2020, marginally improves to 1.02% in 2021, and then plunges to -55.86% in 2022.

Summary of trends:

The company experienced strong growth in equity and earnings in 2019, followed by a period of stagnation and gradual decline through 2020 and 2021. The year 2022 marks a critical downturn with substantial net losses and significant erosion of stockholders’ equity, resulting in sharply negative returns on equity. Adjusted metrics mirror these patterns, indicating that both reported and adjusted measures reflect considerable financial challenges in the latest period.

Net earnings (loss) attributable to FIS common stockholders

There is a marked volatility in net earnings over the periods. Earnings were strong in 2018 at 846 million USD but dropped significantly to 298 million USD in 2019 and further to 158 million USD in 2020. A recovery occurred in 2021 with net earnings rising to 417 million USD, followed by a steep decline to a substantial loss of 16,720 million USD in 2022. This indicates significant financial challenges or one-time events impacting profitability in 2022.

Total assets

Total assets experienced a sharp increase from 23,770 million USD in 2018 to over 83,800 million USD in 2019 and remained relatively stable through 2021, hovering around 82,900 million USD. In 2022, assets declined notably to 63,278 million USD, suggesting possible asset sales, write-downs, or other factors reducing the asset base.

Reported ROA (Return on Assets)

The reported ROA follows the net earnings trend, starting at a strong 3.56% in 2018 and declining dramatically over the next few years to a low of 0.19% in 2020. A slight recovery to 0.5% is seen in 2021 before collapsing to a deeply negative -26.42% in 2022, reflecting the large net loss and reduced asset base. This highlights deteriorating asset profitability, especially in 2022.

Adjusted net earnings (loss)

Adjusted net earnings present a similar pattern to reported net earnings but with some differences in magnitude, suggesting adjustments for non-recurring items or other factors. Adjusted earnings increased from 509 million USD in 2018 to 691 million USD in 2019, then dropped sharply to 136 million USD in 2020. A recovery to 538 million USD occurred in 2021, followed by a significant adjusted loss of 17,847 million USD in 2022, reinforcing the presence of considerable adverse impacts during the latest period.

Adjusted total assets

The adjusted total assets closely mirror the reported total assets, rising sharply from 24,189 million USD in 2018 to approximately 83,800 million USD in 2019 and remaining steady through 2021. A decline in adjusted total assets to 63,320 million USD in 2022 is consistent with the reported figures, suggesting that asset write-downs or disposals affected both reported and adjusted values similarly.

Adjusted ROA

Adjusted ROA also reflects the earnings and asset trends, starting at 2.1% in 2018, declining to 0.16% in 2020, and recovering somewhat to 0.65% in 2021. However, it plunges dramatically to -28.19% in 2022. This indicates substantial deterioration in returns on assets after adjustments, consistent with large losses and a contracting asset base.