Mosaic Co. (NYSE:MOS)

The analysis of annual current and deferred income tax expenses reveals notable fluctuations over the five-year period under review.

Current Income Tax Expense

The current income tax expense exhibited a volatile pattern, starting with a significant tax benefit in 2017, represented by a negative value of -121,700 thousand US dollars. This was followed by a substantial increase in tax expense in 2018 reaching 173,500 thousand US dollars. The value then declined sharply in 2019 to 38,400 thousand US dollars, before rising moderately to 93,700 thousand US dollars in 2020. The year 2021 showed a considerable surge to 379,800 thousand US dollars, marking the highest level in the period analyzed.

Deferred Income Tax Expense

The deferred income tax expense demonstrated even greater volatility and magnitude compared to the current tax expense. Initially, in 2017, there was a large deferred tax benefit of 616,600 thousand US dollars. This shifted dramatically to a deferred tax expense of -96,400 thousand US dollars in 2018. The downward trend continued with further increases in deferred tax benefits, reaching -263,100 thousand US dollars in 2019 and deepening substantially to -675,400 thousand US dollars in 2020. However, in 2021, the deferred expense reversed, resulting in a positive expense of 107,900 thousand US dollars.

Provision for Income Taxes

The provision for income taxes, which aggregates current and deferred components, followed a pattern consistent with the underlying components but reflects the net impact. In 2017, the provision was positive at 494,900 thousand US dollars, then decreased markedly to 77,100 thousand US dollars in 2018. It turned negative in 2019 and 2020, with values of -224,700 thousand and -578,500 thousand US dollars respectively, indicating overall income tax benefits during those years. By 2021, the provision rose sharply again to 597,700 thousand US dollars, indicating a substantial income tax expense.

Overall, the data suggests significant fluctuations in both current and deferred income tax expenses, with deferred taxes contributing a large proportion of the variability. The shifts in deferred tax indicate considerable changes in timing differences or valuations of tax assets and liabilities, impacting the overall tax provision. The negative provisions in 2019 and 2020 imply tax benefits were recognized in those years, possibly due to losses or adjustments in deferred tax assets and liabilities, followed by a strong reversal in 2021 with a high provision amount.

U.S. federal statutory tax rate

The U.S. federal statutory tax rate experienced a significant decline from 35% in 2017 to 21% in 2018, maintaining this lower rate consistently through 2021. This reflects a notable tax policy change, stabilizing at a reduced rate for subsequent years.

State and local income taxes, net of federal income tax benefit

State and local income taxes showed variability across the years. Starting near zero (-0.1%) in 2017, the rate increased to 2% in 2018 and 2.6% in 2019, followed by a sharp drop to -7% in 2020, indicating a significant tax benefit or credit during that year. In 2021, it rebounded back to a positive 1.2%.

Percentage depletion in excess of basis

This item displayed fluctuations with negative impacts in 2017 (-13.2%), 2018 (-6.7%), 2020 (-10.3%), and 2021 (-1.1%), contrasting with a positive value of 2.5% in 2019. The overall trend shows frequent negative contributions, suggesting depletion claims often exceeded the basis, impacting tax expenses variably.

Impact of non-U.S. earnings

Significant volatility is noted in the impact of non-U.S. earnings. A large negative impact (-46.9%) occurred in 2017, switched to positive performance in 2018 (11.8%) and 2019 (5.3%), peaked sharply at 42.1% in 2020, before falling back to a moderate 6.3% in 2021. This indicates that non-U.S. earnings affected tax rates markedly and irregularly over the period.

Change in valuation allowance

The change in valuation allowance showed extreme fluctuations, starting with a substantial increase of 148.8% in 2017, followed by decreases in 2018 (-15.2%) and 2019 (-3.1%). The most notable change occurred in 2020 with a greatly negative adjustment of -330%, indicating a major reversal or utilization of valuation allowance. In 2021, the value stabilized near zero at -0.3%.

Phosphates goodwill impairment

This item was only recorded in 2019, showing a negative impact of -5%, representing a goodwill impairment charge related to phosphates that year. No other years contain data for this item.

Non-U.S. incentives

Non-U.S. incentives appear only in 2020 (-35.6%) and 2021 (-5.7%), reflecting considerable tax benefits or incentives linked to international operations during these two years, with a stronger effect in 2020.

Share-based excess cost (benefits)

Share-based excess costs were noted only in the earlier years, declining from 2% in 2017 to 0.7% in 2018, and no data for subsequent years, indicating that this factor became irrelevant or immaterial afterward.

Other items

Other items fluctuated considerably, with a positive effect of 6.7% in 2017, a minimal 0.4% in 2018, a negative impact of -5.4% in 2019, and a return to a positive value of 5.5% in 2021. There is no data for 2020, suggesting variability in miscellaneous factors influencing the tax rate.

Effective tax rate

The effective tax rate exhibited substantial volatility over the period. It started exceptionally high at 132.3% in 2017, dropped sharply to 14% in 2018, and mildly increased to 17.9% in 2019. In 2020, the rate swung dramatically to -319.8%, indicating a considerable net tax benefit or loss recognition. By 2021, it returned to a more typical positive level of 26.9%. This pattern signals episodic extraordinary tax events or adjustments affecting the company's tax expense significantly.

Deferred Revenue

The value of deferred revenue shows variability with a recorded amount of $252,000 thousand in 2017, dropping to $62,400 thousand in 2020, with missing data for other years. This suggests fluctuations or possible reclassification over the periods.

Tax Credit and Loss Carryforwards

Alternative minimum tax credit carryforwards increased from $46,800 thousand in 2017 to a peak of $76,500 thousand in 2018, with no subsequent reported values. Capital loss carryforwards show an increase to $3,000 thousand in 2018 from $100 thousand in 2017, declining back to $100 thousand in 2020. Foreign tax credit carryforwards exhibit a steady upward trend, rising from $322,900 thousand in 2017 to $775,100 thousand in 2021. Net operating loss carryforwards surged from $112,000 thousand in 2017 to $420,000 thousand in 2019 but have since declined to $232,300 thousand by 2021, suggesting utilization or expiration over time.

Pension Plans and Other Benefits

This category increased considerably from $2,100 thousand in 2017 to $43,800 thousand in 2019 before declining steadily to $19,800 thousand by 2021, indicating changing obligations or benefit plan adjustments.

Asset Retirement Obligations

There is a consistent upward trend in asset retirement obligations, growing from $174,100 thousand in 2017 to $337,300 thousand in 2021. This reflects increasing estimated future liabilities related to asset retirement activities.

Disallowed Interest Expense Under §163(j)

Values appear only from 2019 onwards, with $58,100 thousand in 2019, rising to $68,800 thousand in 2020, then decreasing to $31,600 thousand in 2021, indicative of fluctuating limits on interest expense deductions.

Other Assets

Other assets increased sharply from $169,700 thousand in 2017 to $388,800 thousand in 2018, followed by a decline to $287,600 thousand in 2020 and a rebound to $351,200 thousand in 2021, which may reflect changes in asset composition or revaluation.

Deferred Tax Assets and Related Allowances

Deferred tax assets rose steadily from $1,079,700 thousand in 2017 to $1,747,300 thousand in 2021. Meanwhile, the valuation allowance—recorded as a negative figure—increased significantly in magnitude from -$584,100 thousand in 2017, reaching a peak negative of -$1,537,500 thousand in 2018, before decreasing in magnitude to -$774,700 thousand in 2021. Consequently, net deferred tax assets showed fluctuation, starting at $495,600 thousand in 2017, dropping sharply to $61,200 thousand in 2018, but recovering robustly to $972,600 thousand in 2021. This indicates adjustments to realizability assessments of deferred tax assets.

Depreciation and Amortization

This category shows considerable volatility, with a significant initial negative value of -$864,200 thousand in 2017, declining to a smaller magnitude of -$70,700 thousand in 2019, then increasing again to -$456,200 thousand in 2021. These fluctuations may reflect changes in asset base or accelerated depreciation metrics.

Depletion

Depletion expenses increased in absolute terms from -$260,900 thousand in 2017 to a high of -$530,700 thousand in 2019, followed by a decline to -$430,100 thousand in 2021, consistent with changes in natural resource consumption or asset valuation.

Partnership Tax Basis Differences

The negative values remain relatively stable over the years, hovering around -$66,300 thousand in 2021 from -$67,600 thousand in 2017, indicating consistent basis differences without significant changes.

Undistributed Earnings of Non-U.S. Subsidiaries

The negative balance of -$15,000 thousand in 2017 and 2018 decreases in magnitude to -$3,800 thousand in 2019 and 2020, with no reported value in 2021, suggesting possible distribution or reclassification of these earnings.

Other Liabilities

Other liabilities reduced sharply from -$150,600 thousand in 2017 to -$10,300 thousand in 2018, with relatively small fluctuations thereafter, ending at -$39,100 thousand in 2021. This reduction may indicate settled or restructured obligations.

Deferred Tax Liabilities

Deferred tax liabilities decreased from -$1,358,300 thousand in 2017 to -$694,000 thousand in 2019, before increasing again to -$991,700 thousand in 2021. This pattern suggests timing or valuation adjustments within deferred tax liabilities.

Net Deferred Tax Assets (Liabilities)

This net figure decreased in negative magnitude from -$862,700 thousand in 2017 to -$525,300 thousand in 2019, then improved to a positive $118,600 thousand in 2020, before declining to -$19,100 thousand in 2021. The trajectory indicates shifting tax asset and liability balances, with a temporary net asset position in 2020.

Deferred Tax Assets

The deferred tax assets exhibited a significant upward trend from 2017 to 2020. Starting at 254.6 million USD in 2017, the value increased steadily each year, reaching a peak of 1,179.4 million USD by the end of 2020. However, in 2021, this upward momentum reversed somewhat, with deferred tax assets declining to 997.1 million USD. Despite the decrease in 2021, the 2021 figure remains substantially higher than the 2017 base, reflecting overall growth in deferred tax assets over the five-year period.

Deferred Tax Liabilities

Deferred tax liabilities demonstrated a generally declining trajectory from 2017 through 2021. Beginning at 1,117.3 million USD in 2017, the liabilities decreased gradually to 1,016.2 million USD by the end of 2021. Minor fluctuations occurred, including a slight increase from 2019 (1,040.7 million USD) to 2020 (1,060.8 million USD), yet the overall pattern indicates a reduction in tax liabilities during this period.

Summary

The data reveals a widening gap between deferred tax assets and liabilities over the analyzed period. Deferred tax assets more than tripled, particularly with a sharp rise through 2020, while deferred tax liabilities experienced a moderate decline. This divergence suggests potential improvements in future tax benefits or changes in the company's tax position and timing differences impacting assets and liabilities recognition. The decrease in deferred tax assets in 2021 after peaking in 2020 may warrant further examination to understand underlying factors influencing this reversal.

Total Assets

The reported total assets show a general upward trend over the five-year period, increasing from approximately 18.63 billion USD in 2017 to around 22.04 billion USD in 2021. The adjusted total assets follow a similar pattern but with slightly lower values each year, starting at about 18.38 billion USD in 2017 and rising to approximately 21.04 billion USD in 2021. Both series indicate growth, though adjusted totals are consistently below reported values, reflecting the impact of deferred income tax adjustments.

Total Liabilities

Reported total liabilities exhibit a steady increase from roughly 8.99 billion USD in 2017 to about 11.29 billion USD in 2021. The adjusted liabilities trend similarly, increasing from approximately 7.88 billion USD in 2017 to 10.27 billion USD in 2021. Adjusted figures remain lower than reported liabilities throughout the period, suggesting that deferred tax adjustments reduce the total liability figures.

Stockholders’ Equity

The reported total stockholders’ equity rises from around 9.62 billion USD in 2017 to 10.60 billion USD in 2021, although there is a notable dip in 2019 to approximately 9.19 billion USD. Adjusted stockholders’ equity starts higher than reported equity in 2017 at about 10.48 billion USD, but shows a decline from 2018 through 2020, reaching a low of approximately 9.46 billion USD in 2020 before recovering to about 10.62 billion USD in 2021. This indicates some variability in equity values, with adjustments affecting equity particularly during the 2018-2020 period.

Net Earnings (Loss) Attributable to Mosaic

The reported net earnings display significant volatility, starting with a loss of approximately 107.2 million USD in 2017, turning to a profit of 470.0 million USD in 2018, then declining sharply to a loss of about 1.07 billion USD in 2019. The company rebounds with profits of 666.1 million USD in 2020 and 1.63 billion USD in 2021. Adjusted net earnings also fluctuate markedly, starting positive at 509.4 million USD in 2017, declining to 373.6 million USD in 2018, then turning to losses in 2019 and 2020 of about 1.33 billion USD and 9.3 million USD respectively, before recovering to a profit of approximately 1.74 billion USD in 2021. The adjusted results suggest a more pronounced downturn during 2019 and 2020, with a stronger recovery in 2021 compared to reported earnings.

Overall Insights

The data reflects a period of financial instability with significant earnings fluctuations, especially during 2019 and 2020. Despite this volatility, total assets and liabilities have generally increased, indicating growth in the company's scale. Adjustments for deferred income tax impact all major financial statement items, typically lowering asset and liability figures and causing variability in equity and net income measures. The recovery observed in equity and net income in 2021 suggests an improvement in operational performance and financial position after the challenging prior years.

The financial data reveals several notable trends in profitability, efficiency, and leverage metrics over the analyzed five-year period.

Net Profit Margin

The reported net profit margin displays considerable volatility, beginning with a negative margin of -1.45% in 2017, increasing to a positive 4.9% in 2018, declining sharply to -11.98% in 2019, then recovering to 7.67% in 2020 and reaching 13.2% in 2021. The adjusted net profit margin follows a similar pattern but with more pronounced negative deviations, particularly in 2019 and 2020, where it falls to -14.94% and -0.11%, respectively, before climbing substantially to 14.07% in 2021. This pattern suggests significant variations in profitability, potentially influenced by non-recurring items or tax adjustments.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios show moderate improvement over time. Starting at 0.4 in 2017, the reported ratio fluctuates slightly before increasing to 0.56 in 2021. The adjusted ratio shows a steadier increase, from 0.4 in 2017 to 0.59 in 2021, indicating more efficient use of assets in generating revenue, especially in the later years.

Financial Leverage

Reported financial leverage remains relatively stable, beginning at 1.94 in 2017 and slightly increasing to 2.08 by 2021. The adjusted leverage follows a similar upward trend but at generally lower levels, rising from 1.75 in 2017 to 1.98 in 2021. This indicates a modest increase in debt usage relative to equity over the period, with adjusted figures suggesting a slightly more conservative leverage position than the reported data.

Return on Equity (ROE)

Reported ROE mirrors the trend in net profit margin, showing significant fluctuations: negative in 2017 (-1.11%) and 2019 (-11.62%), positive and improving in 2018 (4.52%), 2020 (6.95%), and reaching a high of 15.38% in 2021. Adjusted ROE depicts even greater volatility, with a pronounced negative value in 2019 (-13.7%), near zero in 2020 (-0.1%), followed by a rise to 16.37% in 2021. The divergence between reported and adjusted ROE highlights the impact of tax adjustments and other factors on shareholder returns.

Return on Assets (ROA)

The reported ROA starts negative at -0.58% in 2017, improves to 2.34% in 2018, declines to -5.53% in 2019, then recovers steadily to 7.4% in 2021. The adjusted ROA follows similar fluctuations but shows deeper negative values in 2019 (-7.08%) and near zero in 2020 (-0.05%), before climbing to 8.26% in 2021. This overall pattern reflects changes in asset profitability, consistent with the trends seen in profit margins and turnover ratios.

In summary, the company experienced significant profitability challenges during 2019 and 2020, as evidenced by negative margins and returns in both reported and adjusted figures. From 2020 onwards, there is a clear recovery trend with improving profitability, asset utilization, and returns, peaking in 2021. The stable increase in financial leverage suggests a cautious approach to financing growth. The variances between reported and adjusted data imply the influence of tax effects and other adjustments on the company’s financial performance.

Reported Net Earnings (Loss) Attributable to Mosaic

The reported net earnings exhibit significant volatility over the five-year period. There is an initial loss of -$107.2 million in 2017, followed by a sharp increase to a profit of $470 million in 2018. This upward trend reverses dramatically in 2019 with a substantial loss of approximately -$1.067 billion. The company recovers to profitability with earnings of $666.1 million in 2020 and further improves to $1.63 billion in 2021.

Adjusted Net Earnings (Loss) Attributable to Mosaic

The adjusted earnings display a similarly volatile pattern but with some deviations from the reported figures. In 2017, the adjusted earnings are positive at $509.4 million, contrasting with the reported loss. Subsequently, there is a decline to $373.6 million in 2018, followed by a steep loss of approximately -$1.33 billion in 2019. Adjusted earnings approach break-even in 2020 at -$9.3 million, and then rise sharply to $1.74 billion in 2021. The divergence between reported and adjusted figures is most pronounced in years 2017, 2019, and 2020, indicating material impacts of income tax adjustments or other non-operating items during these periods.

Reported Net Profit Margin

The reported net profit margin mirrors the earnings trend, showing negative performance in 2017 (-1.45%) and 2019 (-11.98%), positive margins in 2018 (4.9%) and 2020 (7.67%), and a peak margin of 13.2% in 2021. This indicates improving profitability in recent years, consistent with the increase in reported net earnings.

Adjusted Net Profit Margin

The adjusted net profit margin also presents significant fluctuations. It starts at 6.88% in 2017, decreases to 3.9% in 2018, and then decreases sharply to -14.94% in 2019, reflecting the large adjusted loss in that year. In 2020, the margin approaches zero at -0.11%, indicating near break-even adjusted operations, and then rebounds to a higher margin of 14.07% in 2021, slightly exceeding the reported margin for that year. This suggests that adjustments have a meaningful effect on profitability measurement, particularly during periods of losses.

Overall Observations

The data reflect substantial fluctuations in Mosaic's annual profitability, both on a reported and adjusted basis, with significant losses in 2017 and 2019 followed by strong recoveries in 2020 and 2021. The large differences between reported and adjusted earnings in certain years highlight the impact of deferred income tax adjustments or other non-operating factors. Profit margins correspond closely with the earnings trends, underscoring the variable nature of the company’s financial performance over this period. The positive trend in the latest year indicates a robust improvement in underlying profitability.

The analysis of the data from 2017 to 2021 highlights several trends in total assets and asset turnover ratios, both reported and adjusted for deferred income tax.

Total Assets

The reported total assets consistently increased over the five-year period, rising from $18,633,400 thousand in 2017 to $22,036,400 thousand in 2021. This represents a steady growth trend in asset size. Similarly, the adjusted total assets also show an increasing trend but at slightly lower values compared to the reported figures. Adjusted assets rose from $18,378,800 thousand in 2017 to $21,039,300 thousand in 2021, indicating a consistent upward trajectory despite the adjustment.

Total Asset Turnover Ratios

The reported total asset turnover ratio showed some fluctuation but an overall increasing trend from 0.40 in 2017 to 0.56 in 2021. This suggests an improvement in the efficiency of asset usage to generate sales or revenue. The adjusted total asset turnover ratios generally mirror the reported ratios but with slightly higher values in most years, particularly in 2019 and 2021 where the adjusted ratio was 0.47 and 0.59 respectively, compared to reported values of 0.46 and 0.56. This indicates that when accounting for deferred income tax adjustments, asset utilization efficiency appears marginally better.

Comparative Insights

The gap between the reported and adjusted total assets has remained relatively stable, suggesting consistency in the impact of deferred income tax adjustments over time. The adjusted total asset turnover exceeding the reported turnover in multiple years points to potential conservative effects of the tax adjustments on asset valuation, which when accounted for, reveal slightly enhanced operational efficiency.

The data reveals notable trends in the financial position and leverage of the company over the five-year period analyzed.

Total Assets

Both reported and adjusted total assets demonstrate an overall upward trajectory from 2017 through 2021. Reported total assets increased steadily from $18.63 billion in 2017 to $22.04 billion in 2021, indicating growth in the company’s asset base. Adjusted total assets follow a similar pattern, rising from $18.38 billion in 2017 to $21.04 billion in 2021, although adjusted figures are consistently lower than reported figures, reflecting deferred income tax adjustments.

Stockholders’ Equity

Reported stockholders’ equity shows variability, initially increasing from $9.62 billion in 2017 to a peak of $10.40 billion in 2018, then declining in 2019 before recovering in subsequent years to reach $10.60 billion by 2021. Adjusted stockholders’ equity, which accounts for deferred income tax adjustments, exhibits a similar pattern but maintains slightly higher values in almost all years compared to reported equity. Equity remained relatively stable from 2019 through 2021 after the dip between 2018 and 2019.

Financial Leverage

The reported financial leverage ratio holds relatively constant, hovering around 1.94 from 2017 to 2018, increasing to a peak of 2.10 in 2019, and then slightly decreasing to 2.07 and 2.08 in 2020 and 2021 respectively. Adjusted financial leverage reveals a gradual increase over the period, from 1.75 in 2017 to 1.98 in 2021, signaling a steady increase in reliance on debt relative to equity when deferred income taxes are taken into account. Overall, leverage increased moderately, with adjusted leverage consistently lower than reported leverage.

In summary, the company exhibits growth in asset size over the years, with fluctuations in equity levels that stabilize after 2019. Financial leverage ratios indicate a moderate increase in gearing, with the adjusted values suggesting a slightly more conservative leverage profile once tax adjustments are considered. The deferred tax adjustments create a systematic difference between reported and adjusted figures, consistently showing lower assets and higher equity in the adjusted data compared to reported amounts.

Reported Net Earnings

The reported net earnings attributable to Mosaic display significant volatility over the five-year period. Initially, there is a substantial loss in 2017 amounting to approximately -$107 million, followed by a strong recovery to a profit of $470 million in 2018. However, 2019 sees a sharp decline, with net earnings turning into a pronounced loss of about -$1.067 billion. Recovery is notable thereafter, with profits of $666 million in 2020 and a further increase to over $1.63 billion in 2021.

Adjusted Net Earnings

The adjusted net earnings show a somewhat similar pattern but with more pronounced fluctuations. In 2017, the company reports a positive adjusted earning of roughly $509 million, declining moderately to $374 million in 2018. This is followed by a significant plunge to an adjusted loss exceeding -$1.33 billion in 2019, a near break-even result in 2020 with a loss of $9.3 million, and lastly a sharp recovery in 2021 with adjusted earnings reaching $1.74 billion. The adjustments appear to smooth some fluctuations but still reveal considerable earnings instability.

Reported Total Stockholders’ Equity

The reported equity shows an overall positive trend across the period. Starting at about $9.62 billion in 2017, it increases steadily to a peak of approximately $10.4 billion in 2018, dips to $9.19 billion in 2019, then recovers to $9.58 billion in 2020, and finally rises to $10.6 billion in 2021. This indicates relative stability in the company’s equity base despite earnings volatility.

Adjusted Total Stockholders’ Equity

The adjusted equity values generally follow a similar trajectory to the reported equity but start and end at slightly higher levels. Beginning at around $10.48 billion in 2017, the equity rises to approximately $11.13 billion in 2018, declines to $9.71 billion in 2019, decreases slightly further to $9.46 billion in 2020, and finally increases again to $10.62 billion in 2021. The adjustments suggest accounting for deferred income taxes or other factors that affect equity beyond the reported figures.

Reported Return on Equity (ROE)

The reported ROE follows the trend of net earnings, with negative returns in 2017 (-1.11%) and notably in 2019 (-11.62%), indicative of losses. Positive ROE values are recorded in 2018 (4.52%), 2020 (6.95%), and a significant improvement in 2021 (15.38%), reflecting the company’s improved profitability and efficient use of shareholders’ funds in these years.

Adjusted Return on Equity (ROE)

The adjusted ROE shows more variability with lower returns in 2018 (3.36%) compared to reported ROE and a more severe decline in 2019 (-13.7%). The adjusted ROE in 2020 is nearly zero (-0.1%), indicating that once adjustments are considered, the company barely breaks even on equity. The most notable change is a sharp increase to 16.37% in 2021, which slightly exceeds the reported figure, highlighting substantial profitability after adjustments in the most recent year.

The financial data reveals notable fluctuations in both reported and adjusted net earnings over the five-year period. Reported net earnings exhibited significant volatility, with a substantial loss in 2017, a recovery to positive results in 2018, followed by a sharp decline into negative territory in 2019. Subsequent years showed a strong rebound, culminating in the highest reported net earnings in 2021. Adjusted net earnings mirrored a similar pattern but with even greater variability, highlighting more pronounced losses in 2019 and 2020, before surging to a peak in 2021.

Total assets, both reported and adjusted, demonstrated a general upward trend, suggesting growth in the asset base. Reported total assets peaked in 2018, experienced a slight decline in 2019 and 2020, and then increased again in 2021 to the highest level observed. Adjusted total assets showed a consistent decline from 2017 through 2020, reversing course in 2021 with a significant increase, although remaining below the reported figures.

Return on assets (ROA) reflected the patterns observed in net earnings. The reported ROA was negative in 2017 and 2019, indicating periods of inefficiency or losses, with a recovery to positive returns during the intervening years and a substantial increase in 2021. Adjusted ROA presented a similar but more pronounced trend, with negative returns widening significantly in 2019 and 2020 before improving markedly to the highest positive rate in 2021.

Net Earnings and Losses

Considerable volatility characterized the reported net earnings, shifting from negative to positive and back again before achieving strong profitability by 2021.

Adjusted net earnings exhibited similar trends but with amplified fluctuations, indicating the impact of adjustments related to deferred income taxes or other factors on profitability measures.

Total Assets

Reported total assets generally increased, with some declines in the middle years, ending at a peak value in 2021, reflecting asset growth or acquisitions.

Adjusted total assets showed a declining trend prior to 2021, suggesting that the adjustments deducted certain asset values or reclassified them, then rose notably in the final year.

Return on Assets (ROA)

The reported ROA aligned with net earnings trends, moving from negative returns during loss years to stronger positive returns, reaching a maximum in 2021, indicative of improved efficiency or profitability.

Adjusted ROA was more volatile, with deeper negative returns in 2019 and 2020 and a significant improvement in 2021, suggesting that adjustments had significant effects on evaluating asset performance over time.

Overall, the company experienced periods of both financial distress and recovery during these years, with the most favorable financial performance occurring in 2021 across all metrics. The adjustments for deferred income tax and related items appear to amplify fluctuations in profitability and asset values, which should be taken into account when assessing the company’s financial health and operational efficiency.