Kinder Morgan Inc. (NYSE:KMI)

Total Asset Turnover

The reported total asset turnover ratio remained relatively stable over the analyzed period, fluctuating slightly between 0.16 and 0.18. The adjusted total asset turnover showed a similar pattern, maintaining consistency around 0.17 to 0.18, indicating steady efficiency in asset utilization without significant improvement or decline.

Current Ratio

Both reported and adjusted current ratios exhibited volatility across the years. The lowest point was observed in 2017 at approximately 0.44, suggesting a reduced short-term liquidity position. However, a notable increase in 2018 brought the ratio back to a healthier level of 0.76 before a slight decline to around 0.63-0.64 in 2019, indicating some fluctuation in the company's ability to cover short-term liabilities with current assets.

Debt to Equity Ratio

The reported debt to equity ratio showed a gradual decline from 1.23 in 2015 to 1.02 in 2019, reflecting a conservative shift in the capital structure with reduced reliance on equity financing relative to debt. The adjusted debt to equity ratio started higher at 1.45 but converged to the same 1.02 by 2019, reinforcing the trend of declining leverage over time.

Debt to Capital Ratio

Both reported and adjusted debt to capital ratios decreased steadily from 2015 to 2019, moving from approximately 0.55-0.59 down to 0.5. This reduction indicates a gradual deleveraging trend, meaning a lower proportion of debt in the company’s overall capital structure.

Financial Leverage

The reported financial leverage ratio remained fairly constant around 2.3 to 2.4 initially, then declined to 2.2 by 2019. Similarly, the adjusted financial leverage started above 2.6 and decreased consistently to 2.15, highlighting a reduction in the extent to which the company uses borrowed capital to finance its assets.

Net Profit Margin

The reported net profit margin experienced significant fluctuation with a marked increase from 1.76% in 2015 to 16.58% in 2019, with a notable dip in 2017 at 1.34%. The adjusted net profit margin shows a more consistent upward trend, rising substantially from 3.73% to 22.66% over the five-year span, indicating improving profitability when adjusted for non-recurring items or other factors.

Return on Equity (ROE)

The reported ROE exhibited fluctuations but showed general improvement, climbing from 0.72% in 2015 to 6.49% in 2019. The adjusted ROE presented a steadier upward progression from 1.78% to 8.79%, suggesting enhanced effectiveness in generating shareholder returns on equity over time.

Return on Assets (ROA)

The reported ROA remained low and volatile initially but improved from 0.3% in 2015 to 2.95% in 2019. Adjusted ROA figures consistently increased from 0.68% to 4.08%, indicating better overall asset profitability when adjustments are made. This upward trend signals improved asset utilization efficiency contributing to profitability.

The financial data over the five-year period reveals several notable trends in revenues, total assets, and asset turnover ratios. Revenues show fluctuations without a clear linear growth or decline. After peaking at 14,403 million USD in 2015, revenues decreased to 13,058 million USD in 2016, then experienced a moderate recovery in 2017 and 2018, reaching 14,144 million USD, followed by a decline again to 13,209 million USD in 2019.

Total assets exhibit a consistent downward trend throughout the period. Starting at 84,104 million USD in 2015, total assets steadily decreased each year to 74,157 million USD by 2019, reflecting a contraction in the asset base by approximately 11.9% over the five years.

Correspondingly, the reported total asset turnover ratio remains relatively stable, ranging narrowly between 0.16 and 0.18. This suggests that despite the reduction in total assets, revenue generation relative to assets has been maintained at a consistent level, indicating stable operational efficiency in asset utilization.

The adjusted total assets follow a similar declining pattern as reported total assets, decreasing from 79,514 million USD in 2015 to 73,309 million USD in 2019. The adjusted total asset turnover ratio remains constant at approximately 0.18 across the years, reinforcing the observation of steady efficiency in asset use when adjusted figures are considered.

Revenues

Displayed volatility without a definitive growing or declining trend; peaked initially in 2015, fell in 2016, partially recovered over the next two years, then declined again in 2019.

Total Assets

Consistently declined across the period, indicating asset base reduction by nearly 12%.

Reported Total Asset Turnover

Remained stable around 0.16 to 0.18, suggesting consistent efficiency in the use of assets to generate revenues despite declining total assets.

Adjusted Total Assets and Turnover

Adjusted asset values decrease in parallel with reported assets, while adjusted total asset turnover holds steady at 0.18, confirming stable operational efficiency with adjusted figures.

Overall, the data indicates a company maintaining revenue generation efficiency relative to its asset base, despite a declining trend in total and adjusted total assets. Revenue fluctuations imply market or operational variability, while stable asset turnover ratios suggest consistent management effectiveness in utilizing assets.

Current Assets

Current assets demonstrated fluctuating behavior over the five-year period. Beginning at 2824 million USD in 2015, they increased to 3229 million USD in 2016 but then declined to 2715 million USD in 2017. A significant rise occurred in 2018, reaching 5722 million USD, followed by a drop to 3238 million USD in 2019.

Current Liabilities

Current liabilities consistently increased from 4065 million USD in 2015 to 7557 million USD in 2018. However, in 2019, there was a notable decrease to 5100 million USD, interrupting the upward trajectory seen in previous years.

Reported Current Ratio

The reported current ratio, an indicator of short-term liquidity, showed a decreasing trend from 0.69 in 2015 to a low of 0.44 in 2017. This was followed by an improvement to 0.76 in 2018 and a subsequent reduction to 0.63 in 2019. Overall, the ratio stayed below 1 throughout the period, indicating current liabilities exceeded current assets most years.

Adjusted Current Assets

Adjusted current assets closely mirrored the pattern of reported current assets, starting at 2915 million USD in 2015 and experiencing a rise to 3268 million USD in 2016. A decline to 2750 million USD occurred in 2017, followed by a sharp increase to 5725 million USD in 2018 and a decrease to 3247 million USD in 2019.

Adjusted Current Ratio

The adjusted current ratio exhibited similar movements to the reported ratio, starting at 0.72 in 2015 and declining to 0.44 in 2017. It then improved to 0.76 in 2018 and decreased slightly to 0.64 in 2019, remaining consistently below 1 throughout the timeframe.

Summary of Observations

The data reveals volatility in both current assets and liabilities over the analyzed period, with particularly large swings in 2018 where current assets nearly doubled while liabilities also peaked. Correspondingly, liquidity ratios, both reported and adjusted, reflected these movements by declining initially, improving markedly in 2018, and then retreating in 2019. The persistent ratios below 1 suggest ongoing short-term liquidity challenges, despite temporary improvements. The alignment between reported and adjusted figures indicates that adjustments had minimal impact on trend interpretations.

Total Debt

Total debt has shown a consistent downward trend over the analyzed period, decreasing from $43,227 million in 2015 to $34,392 million in 2019. This reflects a reduction in the company’s leverage in terms of absolute debt levels by approximately 20.5% over five years.

Total Stockholders’ Equity

The total stockholders’ equity remained relatively stable throughout the period, marginally decreasing from $35,119 million in 2015 to $33,742 million in 2019 with slight fluctuations in between. This suggests a steady equity base with no significant dilution or capital infusion changes.

Reported Debt to Equity Ratio

The reported debt to equity ratio steadily declined from 1.23 in 2015 to 1.02 in 2019, indicating an improvement in the company's financial leverage position. The ratio moved closer to parity, signifying that debt levels are approaching the equity levels by the end of the period.

Adjusted Total Debt

Adjusted total debt reflects a similar decreasing pattern, dropping from $43,869 million in 2015 to $34,721 million in 2019. The adjusted figures are slightly higher than reported debt, suggesting that certain liabilities are included in this calculation. Nonetheless, the declining trend reaffirms the company’s efforts to reduce leverage.

Adjusted Total Stockholders’ Equity

Adjusted stockholders’ equity increased from $30,171 million in 2015 to $34,041 million in 2019, showing a moderate upward trend. This divergence from the reported equity implies adjustments that recognize additional equity components or reserves, reflecting potential strengthening of the equity base over time.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased significantly from 1.45 in 2015 to 1.02 in 2019. This notable decline illustrates an improved capital structure, with a substantial reduction in leverage when considering all adjusted liabilities and equity accounts. The ratio’s near unity by 2019 indicates balanced financial risk.

The financial data reflects a consistent downward trend in debt levels and capital for Kinder Morgan Inc. over the five-year period ending in 2019.

Total Debt

Total debt decreased steadily from $43,227 million in 2015 to $34,392 million in 2019. This represents a reduction of approximately 20%, indicating active debt management and potential deleveraging efforts.

Total Capital

Total capital also exhibited a declining pattern, falling from $78,346 million in 2015 to $68,134 million in 2019. The decrease of roughly 13% aligns with the reduction in total debt, suggesting overall contraction or restructuring in the capital base.

Reported Debt to Capital Ratio

The reported debt to capital ratio declined gradually from 0.55 in 2015 to 0.50 in 2019. This indicates an improvement in capital structure, with debt constituting a decreasing proportion of total capital, enhancing financial leverage and potentially reducing risk.

Adjusted Total Debt

Adjusted total debt, which may include additional liabilities or modifications, followed a similar decreasing trajectory from $43,869 million in 2015 to $34,721 million in 2019. This trend supports the observation of prudent debt reduction initiatives.

Adjusted Total Capital

Adjusted total capital remained more stable compared to reported total capital, with minor fluctuations around the $71,000 million mark through 2017 and 2018 before declining to $68,762 million in 2019. This relative stability suggests adjustments provided a more consistent view of capital resources during the period.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreased from 0.59 in 2015 to 0.50 in 2019, mirroring the decline in the reported ratio and reinforcing the interpretation of improved leverage and deleveraging strategies.

Overall, the data evidences a focused effort on managing and reducing debt levels relative to the company's capital base. The consistent decline in both reported and adjusted debt ratios highlights an improving financial position from a leverage perspective, which may positively influence creditworthiness and financial flexibility.

The analysis of the financial data reveals a gradual decline in total assets over the five-year period under review. Total assets decreased from $84,104 million at the end of 2015 to $74,157 million by the end of 2019, indicating a contraction in the asset base. Conversely, total stockholders’ equity for Kinder Morgan, Inc. remained relatively stable, with a marginal decline from $35,119 million in 2015 to $33,742 million in 2019, showing little volatility in the equity base.

Financial leverage, measured by the reported ratio, demonstrated a slight downward trend, moving from 2.39 in 2015 to 2.20 in 2019. This trend suggests a modest reduction in the use of debt relative to equity, potentially reflecting a more conservative capital structure over time.

Adjusted figures show a consistent pattern with the reported data but provide more nuanced insights. Adjusted total assets followed a similar declining trajectory, decreasing from $79,514 million to $73,309 million across the same period. In contrast, adjusted total stockholders’ equity increased steadily from $30,171 million in 2015 to $34,041 million in 2019, indicating strengthening equity after adjustments.

The adjusted financial leverage ratio pronouncedly declined from 2.64 in 2015 to 2.15 in 2019, signifying a substantial deleveraging trend once adjustments are considered. This reduction in leverage suggests the company has decreased its reliance on debt financing relative to equity, enhancing financial stability and possibly reducing risk.

Total Assets

Showed a downward trend, decreasing by approximately 12% over the period, reflecting a possible divestiture of assets or reduced capital investment.

Total Stockholders’ Equity

Remained relatively stable with a slight decline in reported figures but an upward trend in adjusted equity, indicating that adjustments may highlight improved equity quality or valuation.

Reported Financial Leverage

Exhibited a gradual decline, suggesting diminished debt reliance relative to equity.

Adjusted Financial Leverage

Displayed a sharper decline than the reported leverage, highlighting more pronounced deleveraging when adjustments are accounted for.

Overall, the data illustrates a period in which the company undertook a reduction in total assets and financial leverage, supported by an increase in adjusted equity. The deleveraging trend reflected in both reported and adjusted leverage ratios points to a strategic shift towards a more conservative capital structure, potentially improving the company's financial resilience.

Net Income Attributable to Kinder Morgan, Inc.

The net income exhibits considerable fluctuations over the five-year period. Starting at $253 million in 2015, it increased sharply to $708 million in 2016, then declined to $183 million in 2017. A significant increase followed in 2018, reaching $1,609 million, and further increased to $2,190 million by 2019.

Revenues

Revenues demonstrate a general decreasing trend with minor oscillations. From $14,403 million in 2015, the figure declined to $13,058 million in 2016, rose slightly to $13,705 million in 2017, increased marginally to $14,144 million in 2018, and then decreased again to $13,209 million in 2019.

Reported Net Profit Margin

The reported net profit margin shows volatility but an overall increasing trend. Beginning at 1.76% in 2015, it surged to 5.42% in 2016, dropped to 1.34% in 2017, then rose substantially to 11.38% in 2018 and further increased to 16.58% in 2019.

Adjusted Net Income

Adjusted net income consistently rose each year, indicating improving underlying profitability. It increased from $537 million in 2015 to $1,556 million in 2016, then to $2,453 million in 2017, $2,648 million in 2018, and $2,993 million in 2019.

Adjusted Net Profit Margin

The adjusted net profit margin follows a steady upward trajectory, demonstrating enhanced operational efficiency or favorable adjustments over time. It increased from 3.73% in 2015 to 11.92% in 2016, 17.9% in 2017, 18.72% in 2018, and 22.66% in 2019.

Summary of Trends and Insights

Despite revenues showing a generally declining or stable trend with minor variations, both net income and adjusted net income reveal significant growth, especially pronounced from 2017 onwards. This divergence suggests improvements in cost management, operational efficiency, or significant non-operating factors impacting net income. The adjusted profitability measures, reflecting core business performance, indicate steady enhancement in margins, rising markedly over the period, which underscores strengthening profitability fundamentals. The volatility in reported net income and margins, contrasted with the smoother rising trends in adjusted figures, highlights the impact of one-time events or accounting adjustments on reported results. Overall, the financial data denotes a strengthening profitability profile amid relatively stable revenues.

Net Income Trend

The net income attributable to the company exhibited marked volatility over the five-year period. Beginning at 253 million USD in 2015, there was a significant increase to 708 million USD in 2016, followed by a sharp decline to 183 million USD in 2017. Subsequently, net income rose substantially in 2018 and 2019, reaching 1609 million USD and 2190 million USD respectively, indicating a strong recovery and growth in profitability during the latter years.

Total Stockholders’ Equity

Total stockholders’ equity showed a slight declining trend from 35,119 million USD in 2015 to 33,636 million USD in 2017, before stabilizing around 33,678 million USD in 2018 and 33,742 million USD in 2019. This suggests a relatively stable equity base with minor fluctuations during the period.

Reported Return on Equity (ROE)

The reported ROE demonstrated a fluctuating pattern aligned with the net income changes. It started low at 0.72% in 2015, rose to 2.06% in 2016, dropped to 0.54% in 2017, and then increased markedly in 2018 and 2019 to 4.78% and 6.49% respectively. This indicates an improving efficiency in generating profits from equity over the last two years.

Adjusted Net Income

Adjusted net income showed a consistent upward trend throughout the period, increasing from 537 million USD in 2015 to 2993 million USD in 2019. This steady growth in adjusted earnings suggests the company experienced improving underlying profitability when accounting for adjustments made.

Adjusted Total Stockholders’ Equity

The adjusted total stockholders’ equity increased progressively from 30,171 million USD in 2015 to 34,041 million USD in 2019. This reflects an expanding equity base when considering adjusted figures, indicating possible capital contributions or retained earnings adjustments not captured in the reported equity.

Adjusted Return on Equity (ROE)

Adjusted ROE exhibited a consistent improvement over the period, starting at 1.78% in 2015 and increasing steadily to 8.79% in 2019. This trend highlights enhanced profitability relative to adjusted equity, with the company becoming more efficient in generating returns for shareholders over time.

Summary Insights

Overall, the financial data indicate significant improvements in both reported and adjusted profitability metrics towards the end of the period. While reported net income and ROE showed variability in the earlier years, both adjusted net income and adjusted ROE increased steadily, suggesting underlying growth in earnings power and effective use of equity. The relatively stable levels of reported and adjusted stockholders’ equity imply the company maintained a consistent capital structure even as profitability improved.

Net Income Attributable to Kinder Morgan, Inc.

The net income fluctuated significantly over the analyzed period. Starting at $253 million in 2015, it showed a substantial increase to $708 million in 2016, followed by a decline to $183 million in 2017. Thereafter, the net income rose markedly to $1,609 million in 2018 and further to $2,190 million in 2019, indicating considerable volatility followed by strong growth in the final two years.

Total Assets

Total assets demonstrated a downward trend throughout the period. Beginning at $84,104 million in 2015, assets decreased slightly each year, ending at $74,157 million in 2019. This consistent decline suggests asset reduction or divestitures during these years.

Reported Return on Assets (ROA)

The reported ROA mirrored the fluctuations seen in net income but with an improving trend towards the end. It started low at 0.3% in 2015, increased to 0.88% in 2016, then declined to 0.23% in 2017. Following this, ROA rose significantly to 2.04% in 2018 and 2.95% in 2019, reflecting improved profitability relative to asset base in the latter years.

Adjusted Net Income

Adjusted net income showed a consistent upward trend over the analyzed timeframe. It increased from $537 million in 2015 to $1,556 million in 2016, and further to $2,453 million in 2017. The trend continued with $2,648 million in 2018 and $2,993 million in 2019, indicating improving underlying earnings performance after adjustments.

Adjusted Total Assets

Adjusted total assets slightly declined from $79,514 million in 2015 to $73,309 million in 2019, with a minor fluctuation between years. This decreasing pattern is consistent with the trend observed in total assets, suggesting ongoing asset base optimization or depreciation effects.

Adjusted Return on Assets

Adjusted ROA displayed a positive and steady increase throughout the period. Beginning at 0.68% in 2015, it rose sharply to 2.03% in 2016, continued upward to 3.16% in 2017, 3.4% in 2018, and reached 4.08% in 2019. This steady improvement indicates enhanced operational efficiency and profitability relative to the adjusted asset base over time.

Summary of Trends and Insights

The financial data reveals two main observations: a general decline in asset levels alongside improving profitability metrics. Despite total assets decreasing, both net income and adjusted net income showed substantial growth in the later years. This translated into improving returns on assets, both reported and adjusted, suggesting that the company has been able to generate higher income from a shrinking asset base. The adjusted figures consistently indicate stronger profitability and efficiency than the reported figures, highlighting the impact of adjustments on financial performance representation.