Medtronic PLC (NYSE:MDT)

The financial data for current tax expense and deferred tax benefit over the six-year period indicates notable trends and fluctuations impacting the overall income tax provision of the company.

Current Tax Expense

The current tax expense exhibits a generally increasing trend from April 2020 to April 2023, rising from $526 million to a peak of $1,833 million. However, the expense declines subsequently to $1,661 million and then further to $1,275 million by April 2025. This pattern suggests that the company's taxable income or applicable tax rates substantially increased until 2023, followed by a moderation in the two most recent years.

Deferred Tax Benefit

The deferred tax benefit, which is recorded as a negative expense (or a benefit), shows considerable variation but remains negative throughout the period, indicating ongoing deferred tax benefits reducing the overall tax expense. The magnitude of this benefit peaks notably in April 2020 at -$1,277 million and then decreases sharply in 2021 to -$461 million. Thereafter, the deferred tax benefit fluctuates moderately between -$611 million and -$253 million until April 2023, before increasing again in magnitude to -$528 million and then slightly declining to -$339 million by April 2025. This pattern reflects changes in temporary differences and tax rate expectations over time, impacting the timing and recognition of tax expenses.

Income Tax Provision (Benefit)

The net income tax provision, which results from combining current tax expense and deferred tax benefit, initiates with a negative value of -$751 million in April 2020, indicating an overall tax benefit for that year. Subsequently, it turns positive in April 2021 at $265 million and continues to increase to $1,580 million by April 2023. Afterward, the tax provision decreases to $1,133 million and then to $936 million by April 2025. These movements reflect the interplay between rising current tax expenses and fluctuating deferred tax benefits. The initial negative provision followed by sustained positive provisions indicates a shift from a net tax benefit position to a net tax expense, stabilizing at relatively high levels in the latter years.

Overall, the data reveals an initial period characterized by strong deferred tax benefits that led to a net tax benefit. This transitioned into years with increasing current tax charges, partially offset by smaller but consistent deferred tax benefits, resulting in significant positive income tax provisions. The recent decreases in current tax expense and income tax provision may indicate changes in earnings, tax planning strategies, or tax legislation affecting the company’s tax liabilities.

The analysis of the annual financial data reveals notable fluctuations in the effective tax rate and its components over the observed periods.

U.S. Federal Statutory Tax Rate

The U.S. federal statutory tax rate remains constant at 21% throughout the timeframe, indicating stability in the base federal tax policy applicable to the entity.

U.S. State Taxes, Net of Federal Tax Benefit

This component demonstrates variability, starting at 0.5% in 2020, declining to negative 1.1% in 2021, and then fluctuating between 0.1% and 0.7% in the subsequent years. The negative values suggest tax benefits or credits exceeding the state taxes during some periods, impacting the overall tax expense.

Research and Development Credit

The research and development credit consistently reduces the tax rate, fluctuating between approximately -2.3% and -1.3%. This indicates ongoing utilization of R&D tax incentives, albeit with some variation in magnitude year over year.

Puerto Rico Excise Tax

Puerto Rico excise tax contributes negatively to the tax rate, ranging from -2.0% to -1.0% initially, but appears to be phased out or missing for the final two years.

International Tax Impact

The international tax rate impact, although consistently negative (indicating tax benefits or lower rates abroad), shows a decreasing magnitude from -12.6% in 2021 to -6.5% in 2025. This suggests a diminishing tax benefit from international operations over time.

Stock Based Compensation

Stock-based compensation exhibits a shift from a negative impact on the tax rate (up to -1.5%) in earlier years to slightly positive values (around 0.3%) in more recent years, indicating a changing tax treatment or cost allocation related to equity compensation programs.

Uncertain Tax Positions and Interest

Positive contributions to the tax rate from uncertain tax positions and interest are observed throughout, ranging from 0.5% to 1.4%, suggesting adjustments or provisions for unresolved tax matters that increase tax expense.

Base Erosion Anti-Abuse Tax (BEAT)

The BEAT shows inconsistent and minimal impact, peaking at 2.6% in 2020, diminishing substantially afterwards with occasional missing data, indicating sporadic influence on the overall tax rate.

Foreign Derived Intangible Income Benefit

This item consistently reduces the tax rate, though with moderate variability, between -1.7% and -1.0%, pointing to ongoing utilization of intangible income tax benefits linked to foreign operations.

Certain Tax Adjustments

Significant volatility is evident in certain tax adjustments. The sharp decline of -30.8% in 2020 contrasts with positive spikes in 2023 (17%) and 2024 (6.2%), followed by a small positive impact in 2025. This indicates one-time or volatile tax events heavily influencing the effective rate in some years.

Legal Entity Restructuring

Data for legal entity restructuring is limited, with a reported 1.8% only in 2021, suggesting occasional restructuring-related tax impacts that are not consistently material over time.

U.S. Tax on Foreign Earnings

This component consistently adds to the tax rate, fluctuating moderately between 1.5% and 3.5%, highlighting the tax imposed on repatriated or foreign-sourced earnings as a consistent cost factor.

Other, Net

The 'Other, net' category shows minor and inconsistent contributions ranging from -0.2% to 1.2%, indicating miscellaneous tax items with limited overall impact.

Increase (Decrease) in Tax Rate

The overall changes in tax rate show a substantial decrease in 2020 (-39.5%), followed by smaller declines through 2022. However, notable increases occur in 2023 (8.5%) and 2024 (2.4%), before a moderate reduction in 2025 (-4.4%). This pattern suggests significant volatility in tax expenses influenced by specific events or adjustments during the period.

Effective Tax Rate

The effective tax rate demonstrates a pronounced upward trend from a negative rate (-18.5%) in 2020 towards positive and increasing levels, peaking at 29.5% in 2023. This is followed by a decline to 16.6% in 2025. The initial negative rate implies substantial tax benefits or credits exceeding tax liabilities in 2020, while the later increase suggests growing taxable income or reduced credits, eventually stabilizing at a moderate effective tax rate by the end of the period.

The financial data reveals several notable trends over the periods analyzed.

Net operating loss, capital loss, and credit carryforwards

This item experienced a gradual decline from 6432 million USD in April 2020 to 5982 million USD in April 2022, followed by a sharp increase to a peak of 11775 million USD in April 2024, before a slight reduction to 11252 million USD in April 2025. This suggests fluctuating losses with a significant accumulation in recent years.

Intangible assets

Values appeared starting in April 2022 with 2334 million USD, slightly decreasing to 2259 million USD in April 2023, then rising steadily to 2800 million USD by April 2025. The underlying intangible asset base is expanding over the last three years.

Capitalization of research and development

There is a continuous upward trend from 408 million USD in April 2021 to 1420 million USD in April 2025, indicating increased investment in R&D capitalization over time.

Other accrued liabilities

These liabilities rose from 390 million USD in April 2020 to a peak of 483 million USD in April 2022, before declining to 404 million USD in April 2024, then rising again to 450 million USD in April 2025. This pattern shows some volatility but generally a moderate increase.

Accrued compensation

Accrued compensation saw an increase from 285 million USD in April 2020 to 411 million USD in April 2021, followed by a decline and then moderate fluctuations, ending at 363 million USD in April 2025.

Pension and post-retirement benefits

A marked decline occurred from 350 million USD in April 2020 to 66 million USD in April 2022, with no reported values in the last two years, possibly indicating a phase-out or change in accounting treatment.

Stock-based compensation

This item remained relatively stable with slight fluctuations between 132 million USD and 149 million USD throughout the period, reflecting consistent stock-based compensation expenses.

Inventory

Inventory declined steadily from 191 million USD in April 2020 to 135 million USD in April 2023, followed by a slight increase to 144 million USD by April 2025, suggesting leaner inventory management with a minor recent build-up.

Deferred revenue

Absent in earlier years, deferred revenue appeared in April 2023 at 37 million USD and increased substantially thereafter to 213 million USD by April 2025, indicating growth in prepaid customer revenue.

Lease obligations

Lease obligations fluctuated mildly, increasing from 101 million USD in April 2020 to 165 million USD in April 2025, suggesting incremental lease commitments.

Federal and state benefit on uncertain tax positions

This item declined overall from 96 million USD in April 2020 to 21 million USD in April 2024, with a slight rebound to 32 million USD in April 2025.

Interest limitation

A generally rising trend is observed, from 236 million USD in April 2020 to a peak at 608 million USD in April 2024, followed by a decrease to 479 million USD in April 2025, indicating changes in allowable interest expense deductions.

Unrealized loss on available-for-sale securities and derivative instruments

This item appears starting only in April 2023 at 39 million USD, decreasing to 13 million in April 2024, but increasing again to 56 million USD in April 2025, suggesting fluctuating market-related losses.

Other (assets and liabilities)

The 'Other' category shows volatility, ranging between 240 and 422 million USD, with a low in April 2023 and recovery thereafter.

Gross deferred tax assets and valuation allowance

Gross deferred tax assets exhibited a robust increase from 8555 million USD in April 2020 to a high of 18277 million USD in April 2024, slightly declining to 17945 million USD in April 2025. Meanwhile, valuation allowances have also increased in magnitude (negatively) from -5482 million USD in April 2020 to -13271 million USD in April 2024, then slightly improving to -12668 million USD in April 2025. This signifies growing deferred tax assets but with a significantly increased valuation allowance offset, indicating potential uncertainty in realization.

Deferred tax assets

Deferred tax assets increased steadily from 3073 million USD in April 2020 to 5277 million USD in April 2025, reflecting improved net tax benefits over time.

Deferred tax liabilities and net deferred tax assets (liabilities)

Deferred tax liabilities showed some volatility with values decreasing from -1465 million USD in April 2020 to a low of -846 million USD in April 2021, increasing again to -2076 million USD in April 2023, and subsequently declining to -1773 million USD by April 2025. Net deferred tax assets grew consistently from 1608 million USD in April 2020 to 3504 million USD in April 2025, suggesting a strengthening net tax asset position despite fluctuations in liabilities.

Prepaid income taxes and income tax receivables

Prepaid income taxes rose moderately from 449 million USD in April 2020 to 719 million USD in April 2025. Income tax receivables showed variable trends, peaking at 494 million USD in April 2023 before decreasing and then rising again to 464 million USD by April 2025. Both indicate improved tax asset positions over time.

Tax assets (liabilities), net

This net figure increased steadily from 2438 million USD in April 2020 to 4687 million USD in April 2025, reflecting an overall strengthening tax asset position.

The analysis of the provided financial data reveals several noteworthy trends regarding the company's current assets and tax-related balances over the six-year period.

Other Current Assets

There is a general increasing trend in other current assets over the period, rising from 780 million USD in 2020 to 1050 million USD in 2025. Although there was a slight dip between 2023 and 2024, the overall pattern indicates growth, suggesting an expansion or accumulation of miscellaneous current assets.

Tax Assets

Tax assets show consistent growth every year, increasing from 2832 million USD in 2020 to 4040 million USD in 2025. This steady rise could reflect an increasing amount of refundable taxes or tax credits available to the company.

Prepaid Income Taxes

The prepaid income taxes balance, which is presented as a negative value, steadily increases in absolute magnitude from -449 million USD in 2020 to -719 million USD in 2025. This indicates a growing amount of taxes paid in advance, potentially reflecting changes in tax payment policies or timing differences.

Income Tax Receivables

Income tax receivables, also negative values, fluctuate somewhat over the years but remain relatively stable with a general modest increase in absolute value, moving from -381 million USD in 2020 to -464 million USD in 2025. The peak negative balance appears in 2023 at -494 million USD, indicating variability in receivables from tax authorities.

Deferred Tax Assets

Deferred tax assets exhibit a steady upward trend similar to total tax assets, increasing from 2782 million USD in 2020 to 3907 million USD in 2025. The consistent growth suggests accumulating temporary differences or tax loss carryforwards recognized as assets.

Deferred Tax Liabilities

Deferred tax liabilities show a notable declining trend, dropping from 1174 million USD in 2020 to 403 million USD in 2025. This steady decrease suggests a reduction in future taxable amounts or changes in accounting estimates related to deferred taxes.

Overall, the data indicates the company has been increasing its tax-related assets while simultaneously reducing its deferred tax liabilities. This pattern may reflect favorable tax positions or strategic tax planning efforts. The growth in other current assets complements the increase in tax assets, indicating overall strengthening current asset balances.

Total Assets

Reported total assets exhibited minor fluctuations over the analyzed periods, starting at 90,689 million US dollars and peaking slightly in 2021 at 93,083 million, before gradually declining to 91,680 million in 2025. Adjusted total assets followed a similar trajectory but remained consistently lower than reported figures, decreasing steadily from 87,907 million in 2020 to 87,773 million in 2025.

Liabilities

Reported total liabilities showed variability, initially increasing from 39,817 million in 2020 to 41,481 million in 2021, then fluctuating before reaching a higher level of 43,424 million in 2025. Adjusted liabilities mirrored this pattern and remained slightly below reported liabilities throughout the periods, increasing overall from 38,643 million to 43,021 million.

Shareholders’ Equity

Reported shareholders' equity demonstrated a peak in 2022 at 52,551 million, followed by a downward trend to 48,024 million in 2025, indicating a reduction in equity value. Adjusted shareholders’ equity reflected a consistent decline from 49,129 million in 2020 to 44,520 million in 2025, showing a steady erosion in adjusted equity over the five-year span.

Net Income Attributable to Medtronic

Reported net income showed significant variation, with a high of 5,039 million in 2022 and notable decreases in 2021 and 2023. The net income rebounded to 4,662 million in 2025. Adjusted net income followed a similar trend, with the highest adjusted net income recorded in 2022 at 4,428 million, followed by a decline and partial recovery to 4,323 million in 2025. Adjusted figures are consistently lower than reported figures, highlighting the impact of tax adjustments.

Overall Observations

The data reveal that while total assets and liabilities displayed moderate volatility, equity levels, particularly when adjusted for tax considerations, showed a consistent downward trend. The variability in net income suggests fluctuating operational performance or the influence of tax and accounting adjustments. The persistent difference between reported and adjusted values underscores the importance of deferred tax considerations in financial assessments.

Net Profit Margin Trends

The reported net profit margin exhibited fluctuations over the observed periods, starting at 16.56% in 2020, declining sharply to 11.97% in 2021, rebounding to 15.9% in 2022, and then generally decreasing through 2024 before an uptick to 13.9% in 2025. The adjusted net profit margin followed a similar pattern but with lower values throughout, beginning at 12.15% in 2020 and declining to a low of 9.73% in 2024, before recovering to 12.89% in 2025. This suggests that adjustments for deferred income tax and other factors consistently reduce reported profit margins, with both margins showing a general downward pressure especially from 2022 to 2024, followed by some recovery in the final year.

Total Asset Turnover Trends

Both reported and adjusted total asset turnover ratios show a steady upward trajectory from 0.32 in 2020 to 0.37 and 0.38, respectively, in 2025. The adjusted ratios are slightly higher than reported for all periods, indicating that adjustments marginally improve the efficiency metric. The consistent increase suggests progressive improvement in asset utilization over the timeframe.

Financial Leverage Trends

Reported financial leverage remained relatively stable from 1.79 in 2020 to 1.91 in 2025, with minor fluctuations in between. Adjusted leverage followed a similar but slightly higher pattern, ending at 1.97 in 2025. This indicates a modest increase in reliance on debt or other liabilities over time, with adjustments slightly amplifying leverage levels.

Return on Equity (ROE) Trends

Reported ROE showed volatility, starting at 9.44% in 2020, declining to 7.01% in 2021, rising to 9.59% in 2022, then dipping again before peaking close to 9.71% in 2025. Adjusted ROE mirrored this pattern, with consistently lower values but converging with reported figures at 9.71% in 2025. The lag in adjusted ROE suggests that tax and other adjustments suppress equity returns especially in the mid-years, but the alignment in 2025 may indicate improved operational effectiveness or accounting adjustments easing.

Return on Assets (ROA) Trends

Reported ROA began at 5.28% in 2020, declined sharply to 3.87% in 2021, rebounded to 5.54% in 2022, and then experienced a gradual decrease to 5.09% by 2025. Adjusted ROA followed a similar pattern but at lower levels, ranging from 4.0% in 2020 to 4.93% in 2025. This indicates moderate volatility with underlying asset profitability subjected to downward pressure from adjustments, yet maintaining an overall recovery and stability towards the end of the period.

Overall Observations

The adjustments for deferred income tax and similar items consistently result in lower profitability metrics (net margin, ROE, ROA) compared to reported figures, reflecting a conservative measurement of performance. Asset turnover is improving steadily, suggesting enhanced operational efficiency. Financial leverage has increased slightly, which might reflect a strategic use of debt or changing capital structure. Profitability ratios show volatility but tend to improve towards the final period, indicating potential stabilization or recovery in financial performance despite earlier fluctuations.

The financial data reflects notable fluctuations in both reported and adjusted net income attributable to the company over the analyzed periods. Reported net income exhibited a significant decrease from 4,789 million US dollars in 2020 to 3,606 million in 2021, followed by a recovery to 5,039 million in 2022. Subsequently, it declined again in 2023 and 2024 to values around 3,676-3,758 million, before rising to 4,662 million in 2025. Adjusted net income mirrors a similar pattern, with declines and recoveries, starting at 3,512 million in 2020, dipping to 3,145 million in 2021, peaking at 4,428 million in 2022, decreasing to 3,148 million in 2024, and increasing again to 4,323 million by 2025.

Regarding profitability, reported net profit margin followed a parallel trend, decreasing from 16.56% in 2020 to 11.97% in 2021, then recovering to near-peak levels of 15.90% in 2022. This was followed by a decline over the next two years, reaching 11.36% in 2024, and a partial rebound to 13.90% in 2025. Adjusted net profit margin also showed a decreasing trend from 12.15% in 2020 to a low of 9.73% in 2024, with intermediate fluctuations and an increase to 12.89% in 2025.

Income Trends

The company experienced variability in income levels, with 2021 and 2023 showing lower performance years, and 2022 and 2025 marking periods of recovery in both reported and adjusted net income.

Profit Margin Trends

Both reported and adjusted net profit margins exhibited cyclical changes, aligning with the income patterns. Margins notably declined post-2020, reached troughs around 2024, then showed improvement in 2025.

Adjustment Effects

Adjusted figures consistently present lower net income and profit margins than reported values, which suggests the presence of non-recurring or deferred tax impacts that reduce the profitability metrics when normalized.

Overall Financial Health Indicators

Despite fluctuations, the data points to resiliency in earnings capacity, as evidenced by recoveries after periods of declines. Profitability trends indicate sensitivity to certain financial or operational factors affecting net results, with a partial restoration of margins toward the end of the examined timeframe.

The financial data over the six-year period reveals the following trends and insights:

Total Assets

Reported total assets have shown a slight fluctuation throughout the period, starting at US$90,689 million in 2020 and ending at US$91,680 million in 2025. There was a minor peak in 2021 at US$93,083 million, followed by gradual declines and stabilizations, with a low around US$89,981 million in 2024 before a slight recovery in 2025.

Adjusted total assets follow a similar pattern but consistently remain lower than the reported total assets, indicating adjustments for deferred income taxes or similar items reduce the asset base. These adjusted figures decreased from US$87,907 million in 2020 to a trough at US$86,420 million in 2024, followed by a modest increase to US$87,773 million in 2025.

Total Asset Turnover

Reported total asset turnover improved steadily over the period. It started at 0.32 in 2020, maintained a similar level in 2021, then rose to 0.35 in 2022. The turnover ratio slightly dipped to 0.34 in 2023 but resumed an upward trend to 0.36 in 2024 and 0.37 in 2025, indicating increasingly efficient use of assets to generate revenue.

Adjusted total asset turnover exhibits a similar upward trajectory but at marginally higher ratios compared to the reported figures, starting at 0.33 in 2020 and rising gradually to 0.38 in 2025. This consistent difference suggests that the adjustments may highlight better asset utilization than is apparent on a reported basis.

Overall, the data points toward relative stability in total assets, with slight fluctuations likely reflecting strategic asset management and adjustments. The improving trends in both reported and adjusted total asset turnover ratios suggest that the company has steadily enhanced its efficiency in generating revenue from its asset base, which could indicate operational improvements or better asset allocation during this period.

Assets

The reported total assets showed a slight overall decline over the period from approximately 90.7 billion USD in April 2020 to about 91.7 billion USD in April 2025, with some fluctuations in between. Adjusted total assets exhibited a similar downward trend from roughly 87.9 billion USD to around 87.8 billion USD within the same timeframe, indicating a marginal contraction in asset size when adjusted for income tax effects.

Shareholders' Equity

Reported shareholders’ equity experienced a gradual decrease from about 50.7 billion USD in April 2020 to near 48.0 billion USD in April 2025. The adjusted figures corroborate this trend, declining from approximately 49.1 billion USD to 44.5 billion USD over the same periods. This downward movement suggests a reduction in net assets attributable to shareholders, potentially reflecting lower retained earnings or other equity components after accounting for income tax adjustments.

Financial Leverage

Reported financial leverage remained relatively stable initially, fluctuating between 1.73 and 1.81 before rising to 1.91 by April 2025. The adjusted financial leverage presented a similar but slightly higher trajectory, starting at 1.79 and increasing steadily to 1.97 by the latest period. This upward shift in leverage ratios, particularly in the adjusted figures, may indicate increased reliance on debt financing or other liabilities relative to equity once tax-related adjustments are incorporated.

The analysis of the financial data over the six-year period reveals several notable trends in reported and adjusted net income, shareholders' equity, and return on equity (ROE).

Net Income Trends

Reported net income attributable to the company exhibits fluctuations throughout the period. It starts at 4,789 million US dollars in April 2020, decreases to 3,606 million by April 2021, rises again to 5,039 million in April 2022, then declines to 3,758 million in April 2023 and 3,676 million in April 2024, before increasing to 4,662 million by April 2025.

The adjusted net income follows a broadly similar pattern but with consistently lower values compared to reported net income. Beginning at 3,512 million in April 2020, it declines to 3,145 million in April 2021, rises to 4,428 million in April 2022, then falls to 3,505 million in April 2023 and 3,148 million in April 2024, before rebounding to 4,323 million by April 2025.

The adjustments appear to remove a portion of net income, potentially reflecting deferred tax impacts or other adjustments, leading to substantial differences between reported and adjusted figures, especially notable during periods of income peaks.

Shareholders’ Equity Trends

Reported shareholders’ equity shows a generally marginal declining trend over the period. It rises from 50,737 million US dollars in April 2020 to a peak of 52,551 million in April 2022, but thereafter decreases consistently each year to 48,024 million by April 2025.

Adjusted shareholders’ equity also follows a similar pattern but remains consistently lower than reported equity. Starting at 49,129 million in April 2020, it peaks at 50,099 million in April 2022 and subsequently declines to 44,520 million by April 2025. The gap between reported and adjusted equity widens slightly over the years, indicating increasing adjustments impacting shareholders’ equity.

Return on Equity (ROE) Analysis

Reported ROE shows considerable variability, moving from 9.44% in April 2020 down to a low of 7.01% in April 2021, recovering to 9.59% in April 2022, falling again to approximately 7.3% in 2023 and 2024, and rising notably to 9.71% in April 2025.

Adjusted ROE generally mirrors the reported ROE trend but at lower levels, starting at 7.15% in April 2020, dropping to 6.37% in April 2021, climbing to 8.84% in April 2022, dipping to around 7.18% and 6.67% in the following two years, and equalizing with reported ROE at 9.71% in April 2025. The convergence of reported and adjusted ROE in the final period suggests a reduction in the impact of adjustments on profitability relative to equity capital.

Overall, the data indicates fluctuations in profitability and equity levels, with both reported and adjusted numbers reflecting similar cyclical patterns but with adjustments consistently lowering the results. The equity base experiences minor growth until 2022, followed by a gradual decline, which alongside fluctuating net income impacts the ROE dynamics. The convergence of adjusted and reported ROE in the latest period may suggest changes in tax accounting or reduced deferred adjustments affecting the financial results.

The analysis of the financial data reveals several notable trends and patterns over the observed periods.

Net Income

Reported net income attributable to the company exhibits volatility, with a notable decline from 4,789 million US dollars in 2020 to 3,606 million in 2021, followed by a recovery to 5,039 million in 2022. Subsequently, it declined again over the next two years to 3,676 million in 2024 before rising to 4,662 million in 2025. Adjusted net income follows a similar pattern but displays generally lower absolute values in comparison to reported figures. It decreased from 3,512 million in 2020 to 3,145 million in 2021, then increased to 4,428 million in 2022, dropped to 3,148 million in 2024, and rose again to 4,323 million in 2025.

Total Assets

Reported total assets remained relatively stable, fluctuating narrowly around the 90,000 million US dollar mark, starting at 90,689 million in 2020 and ending at 91,680 million in 2025. The adjusted total assets show a consistent decline from 87,907 million in 2020 to 86,420 million in 2024, with a minor recovery to 87,773 million in 2025. This indicates a marginal decrease in asset base when adjusted for certain items, suggesting selective treatment of asset values in adjusted figures.

Return on Assets (ROA)

Reported ROA generally mirrors the net income trends, starting at 5.28% in 2020, falling sharply to 3.87% in 2021, then improving to 5.54% in 2022. It subsequently declined to the range of 4.09% to 4.13% in the following two years before rising again to 5.09% in 2025. Adjusted ROA follows a similar pattern yet remains consistently lower than the reported ROA, ranging from 3.5% to 5.05%, indicating that adjusted returns are less optimistic when excluding certain components.

Overall, the data reveals cyclical fluctuations in both reported and adjusted net income and profitability metrics, with a strong recovery in 2022 followed by a dip and partial recovery towards 2025. The stability in total asset values contrasts with the variability in income and returns, implying that operational efficiency and profitability have been the main drivers of performance changes rather than asset growth or contraction. The consistent lower figures in adjusted results suggest that the adjustments may be related to non-recurring items or tax-related effects impacting reported profitability positively.