Newmont Corp. (NYSE:NEM)

The financial data reveals significant fluctuations in both reported and adjusted net income attributable to Newmont stockholders over the five-year period examined. Initially, in 2019 and 2020, the company recorded strong profitability with reported net income amounts of approximately 2805 and 2829 million US dollars, respectively. The adjusted net income figures closely mirror these results, indicating minimal adjustments between reported and adjusted earnings during these years.

In 2021, there is a noticeable decline in both reported and adjusted net income, which dropped to 1166 and 1168 million US dollars respectively. Despite this decrease, the company remained profitable, though at a substantially reduced level compared to the prior two years.

The trend reverses markedly in 2022 and 2023, with both reported and adjusted net incomes shifting into negative territory. In 2022, the company reported a loss of 429 million US dollars, closely aligned with an adjusted loss of 432 million US dollars. This downward trajectory intensified in 2023 where the loss expanded to 2494 million US dollars on both a reported and adjusted basis.

Profitability Trend

There is a clear transition from strong profitability in 2019 and 2020 to significant financial losses by 2022 and 2023.

Consistency Between Reported and Adjusted Results

The close alignment between reported and adjusted net income figures throughout the period suggests few extraordinary or non-recurring items influencing the adjustments.

Magnitude of Losses in Recent Years

The substantial increase in losses in 2023 compared to 2022 signals potential challenges or adverse events impacting financial performance.

Overall, the data underscores a deteriorating profitability trend culminating in sizeable losses over the most recent two years, highlighting a shift in the company’s financial health that warrants further investigation into underlying causes.

Net Profit Margin

The reported net profit margin demonstrates a continuous downward trend over the five-year period. Starting from a strong 28.8% in 2019, it declined to 24.61% in 2020, then to a significantly lower 9.54% in 2021. The margin turned negative in 2022 at -3.6% and further declined to -21.11% in 2023. The adjusted net profit margin follows a similar trajectory and closely aligns with the reported figures, indicating limited impact of adjustments on profitability trends across these years.

Return on Equity (ROE)

Reported ROE exhibits a worsening performance from 2019 through 2023. It decreased from 13.1% in 2019 to 12.3% in 2020, then experienced a sharp decline to 5.29% in 2021. The ROE turned negative in 2022 at -2.22% and further deteriorated to -8.59% in 2023. The adjusted ROE mirrors this pattern almost exactly, suggesting that the negative trends in shareholder returns are consistent regardless of adjustments.

Return on Assets (ROA)

The reported ROA also follows a downward path, starting at 7.02% in 2019 and decreasing slightly to 6.84% in 2020. It then sharply fell to 2.87% in 2021, turned negative in 2022 at -1.11%, and further declined to -4.49% in 2023. Adjusted ROA values are very close to reported values throughout, confirming the pattern of declining asset efficiency over the examined period.

Overall Trends and Insights

All evaluated profitability metrics—net profit margin, ROE, and ROA—exhibit a consistent and significant decline from 2019 through 2023. The transition from positive to negative returns notably occurs from 2021 to 2022, indicating a substantial deterioration in financial performance starting in 2022. The similarity between reported and adjusted figures across all metrics implies that adjustments do not materially alter the assessment of financial health or trend directions. The data suggests challenges in sustaining profitability and returns on equity and assets during the latest periods, requiring further investigation into underlying operational or market factors contributing to these declines.

Net Income Trends

The reported net income attributable to stockholders showed a significant decline over the observed period. Starting from a high of 2805 million USD in 2019, it remained relatively stable through 2020 at 2829 million USD. However, a sharp decrease occurred in 2021, with net income dropping to 1166 million USD. This downward trend continued into negative territory in 2022 and 2023, with losses of 429 million USD and 2494 million USD respectively. The adjusted net income followed a similar pattern, maintaining proximity to the reported figures across all years, indicating that the adjustments had minimal effect on the overall income trend.

Profit Margin Analysis

The reported net profit margin showed a parallel trajectory to net income figures. It started at a robust 28.8% in 2019, decreased slightly to 24.61% in 2020, and then fell sharply to 9.54% in 2021. By 2022, the margin turned negative at -3.6%, and further deteriorated to -21.11% in 2023. The adjusted net profit margin mirrored the reported margins closely, implying consistent adjustment methodology and negligible difference between reported and adjusted results.

Overall Interpretation

The data reflect a clear downward trend in both profitability and net income over the five-year period, moving from strong positive results in the initial years to substantial losses by 2023. The consistency between reported and adjusted figures suggests that the decline is a fundamental operational issue rather than an accounting adjustment. The shift from a positive to negative net profit margin indicates a considerable erosion in company profitability, highlighting potential concerns over cost management, revenue generation, or external market conditions impacting performance adversely.

Net Income Trends

There is a clear downward trajectory in reported net income attributable to stockholders over the five-year period. Starting from a strong positive figure of 2,805 million USD in 2019, the net income slightly increased to 2,829 million USD in 2020 but then sharply declined in the following years. In 2021, net income dropped significantly to 1,166 million USD, before turning negative in 2022 and 2023, reaching -429 million USD and -2,494 million USD respectively. The adjusted net income closely follows the same pattern, reflecting consistent adjustments with minimal deviation from reported figures.

Return on Equity (ROE) Patterns

Reported ROE demonstrates a similar declining pattern aligned with net income trends. Initially, the ROE was robust at 13.1% in 2019, slightly decreasing to 12.3% in 2020, and further dropping to just above 5% in 2021. Thereafter, ROE turned negative in 2022 and 2023, recording -2.22% and -8.59%, respectively. Adjusted ROE values remain almost identical to reported ROE, indicating that adjustments in earnings had negligible effects on this profitability metric.

Overall Financial Performance Insights

The company experienced strong profitability and return on equity until 2020, followed by a significant decline starting in 2021, culminating in losses both in net income and ROE by 2022 and 2023. The sharp decrease in these key financial indicators suggests challenges faced during the latter years, resulting in negative shareholder returns. The close alignment between reported and adjusted measures indicates that the adjustments made did not significantly alter the financial outcome, highlighting the fundamental nature of the decline.

Net Income Trends

Reported net income attributable to stockholders showed a strong performance in 2019 and 2020, with values exceeding 2800 million US dollars in both years. However, there was a significant decline starting in 2021, falling to 1166 million US dollars. The downward trend intensified in 2022 and 2023, with net income turning negative, reaching a loss of 429 million US dollars in 2022 and further deepening to a loss of 2494 million US dollars in 2023.

Adjusted net income followed a nearly identical pattern to the reported figures, starting with high positive values around 2800 million US dollars in 2019 and 2020, declining sharply in 2021, and turning into losses in the subsequent two years with losses matching the reported net income.

Return on Assets (ROA) Trends

Reported ROA mirrored the income trends, maintaining a solid positive return above 7% in 2019, then slightly decreasing to approximately 6.8% in 2020. A marked decline was observed in 2021, with ROA falling to about 2.87%. The company experienced negative returns starting in 2022, with ROA values of -1.11% and worsening to -4.49% in 2023, indicating deteriorating asset efficiency in generating profit.

Adjusted ROA closely tracked the reported ROA, showing virtually identical values across all periods, confirming consistency between reported and adjusted calculations in reflecting asset profitability trends.

Overall Financial Performance Summary

The data reveals a strong financial position through 2019 and 2020, followed by a substantial decline starting in 2021 that culminated in negative profitability and returns by 2022 and 2023. Both net income and ROA metrics demonstrate a material weakening of performance, with losses increasing significantly in the last two periods. The close alignment between reported and adjusted figures suggests that adjustments for investment or other factors did not materially alter the profitability outlook in these years.