Stock Analysis on Net
Stock Analysis on Net

Newmont Corp. (NYSE:NEM)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Newmont Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 55,506 38,482 40,564 41,369 39,974
Less: Goodwill 3,001 1,971 2,771 2,771 2,674
Total assets (adjusted) 52,505 36,511 37,793 38,598 37,300
Adjustment to Total Newmont Stockholders’ Equity
Total Newmont stockholders’ equity (as reported) 29,027 19,354 22,022 23,008 21,420
Less: Goodwill 3,001 1,971 2,771 2,771 2,674
Total Newmont stockholders’ equity (adjusted) 26,026 17,383 19,251 20,237 18,746
Adjustment to Net Income (loss) Attributable To Newmont Stockholders
Net income (loss) attributable to Newmont stockholders (as reported) (2,494) (429) 1,166 2,829 2,805
Add: Goodwill impairment charges 1,760 800 — — —
Net income (loss) attributable to Newmont stockholders (adjusted) (734) 371 1,166 2,829 2,805

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Newmont Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Newmont Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin -21.11% -3.60% 9.54% 24.61% 28.80%
Adjusted net profit margin -6.21% 3.11% 9.54% 24.61% 28.80%
Total Asset Turnover
Reported total asset turnover 0.21 0.31 0.30 0.28 0.24
Adjusted total asset turnover 0.22 0.33 0.32 0.30 0.26
Financial Leverage
Reported financial leverage 1.91 1.99 1.84 1.80 1.87
Adjusted financial leverage 2.02 2.10 1.96 1.91 1.99
Return on Equity (ROE)
Reported ROE -8.59% -2.22% 5.29% 12.30% 13.10%
Adjusted ROE -2.82% 2.13% 6.06% 13.98% 14.96%
Return on Assets (ROA)
Reported ROA -4.49% -1.11% 2.87% 6.84% 7.02%
Adjusted ROA -1.40% 1.02% 3.09% 7.33% 7.52%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Newmont Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Newmont Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Newmont Corp. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Newmont Corp. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Newmont Corp. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Newmont Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Newmont stockholders (2,494) (429) 1,166 2,829 2,805
Sales 11,812 11,915 12,222 11,497 9,740
Profitability Ratio
Net profit margin1 -21.11% -3.60% 9.54% 24.61% 28.80%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Newmont stockholders (734) 371 1,166 2,829 2,805
Sales 11,812 11,915 12,222 11,497 9,740
Profitability Ratio
Adjusted net profit margin2 -6.21% 3.11% 9.54% 24.61% 28.80%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Newmont stockholders ÷ Sales
= 100 × -2,494 ÷ 11,812 = -21.11%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Newmont stockholders ÷ Sales
= 100 × -734 ÷ 11,812 = -6.21%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Newmont Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales 11,812 11,915 12,222 11,497 9,740
Total assets 55,506 38,482 40,564 41,369 39,974
Activity Ratio
Total asset turnover1 0.21 0.31 0.30 0.28 0.24
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales 11,812 11,915 12,222 11,497 9,740
Adjusted total assets 52,505 36,511 37,793 38,598 37,300
Activity Ratio
Adjusted total asset turnover2 0.22 0.33 0.32 0.30 0.26

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Sales ÷ Total assets
= 11,812 ÷ 55,506 = 0.21

2 Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 11,812 ÷ 52,505 = 0.22

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Newmont Corp. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 55,506 38,482 40,564 41,369 39,974
Total Newmont stockholders’ equity 29,027 19,354 22,022 23,008 21,420
Solvency Ratio
Financial leverage1 1.91 1.99 1.84 1.80 1.87
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 52,505 36,511 37,793 38,598 37,300
Adjusted total Newmont stockholders’ equity 26,026 17,383 19,251 20,237 18,746
Solvency Ratio
Adjusted financial leverage2 2.02 2.10 1.96 1.91 1.99

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Financial leverage = Total assets ÷ Total Newmont stockholders’ equity
= 55,506 ÷ 29,027 = 1.91

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Newmont stockholders’ equity
= 52,505 ÷ 26,026 = 2.02

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Newmont Corp. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Newmont stockholders (2,494) (429) 1,166 2,829 2,805
Total Newmont stockholders’ equity 29,027 19,354 22,022 23,008 21,420
Profitability Ratio
ROE1 -8.59% -2.22% 5.29% 12.30% 13.10%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Newmont stockholders (734) 371 1,166 2,829 2,805
Adjusted total Newmont stockholders’ equity 26,026 17,383 19,251 20,237 18,746
Profitability Ratio
Adjusted ROE2 -2.82% 2.13% 6.06% 13.98% 14.96%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROE = 100 × Net income (loss) attributable to Newmont stockholders ÷ Total Newmont stockholders’ equity
= 100 × -2,494 ÷ 29,027 = -8.59%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Newmont stockholders ÷ Adjusted total Newmont stockholders’ equity
= 100 × -734 ÷ 26,026 = -2.82%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Newmont Corp. adjusted ROE deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Newmont stockholders (2,494) (429) 1,166 2,829 2,805
Total assets 55,506 38,482 40,564 41,369 39,974
Profitability Ratio
ROA1 -4.49% -1.11% 2.87% 6.84% 7.02%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Newmont stockholders (734) 371 1,166 2,829 2,805
Adjusted total assets 52,505 36,511 37,793 38,598 37,300
Profitability Ratio
Adjusted ROA2 -1.40% 1.02% 3.09% 7.33% 7.52%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to Newmont stockholders ÷ Total assets
= 100 × -2,494 ÷ 55,506 = -4.49%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Newmont stockholders ÷ Adjusted total assets
= 100 × -734 ÷ 52,505 = -1.40%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Newmont Corp. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.