Newmont Corp. (NYSE:NEM)

Total Asset Turnover

The reported total asset turnover ratio exhibited a gradual increase from 0.24 in 2019 to a peak of 0.31 in 2022, indicating improved efficiency in asset utilization over this period. However, in 2023, there was a notable decline to 0.21, suggesting a reduction in the effectiveness of asset use in generating revenue. The adjusted total asset turnover followed an identical pattern.

Debt to Equity

The reported debt to equity ratio remained relatively stable between 0.29 and 0.33 from 2019 to 2023. Initially, a slight decrease to 0.29 was observed in 2020 and 2021, followed by a modest increase to 0.33 in 2023. Similarly, the adjusted debt to equity ratio showed a slight downward trend early on, from 0.28 in 2019 to 0.27 in 2020 and 2021, before increasing to 0.3 in 2022 and remaining steady in 2023. These trends imply a consistent but cautious management of leverage levels.

Debt to Capital

The reported debt to capital ratio demonstrated a slight decline from 0.24 in 2019 to 0.22 in 2021, followed by a gradual increase back to 0.25 in 2023. The adjusted ratio mirrored this trajectory, decreasing to 0.21 by 2021, then increasing modestly to 0.23 in 2022 and remaining unchanged in 2023. This reflects a stable capital structure with slight fluctuations in the composition of debt and equity financing.

Financial Leverage

The reported financial leverage ratio decreased from 1.87 in 2019 to 1.8 in 2020, then experienced a slight increase to 1.99 in 2022 before declining to 1.91 in 2023. Adjusted leverage followed a similar trend but with generally lower values, starting at 1.62 in 2019 and peaking at 1.81 in 2022 before declining to 1.73 in 2023. These movements suggest moderate changes in the company's use of debt relative to equity over time.

Net Profit Margin

A significant downward trend is observed in the reported net profit margin, starting at 28.8% in 2019 and declining steadily each year to a negative 21.11% in 2023. This indicates deteriorating profitability, moving from solid gains to sustained losses by the most recent period. The adjusted net profit margin follows a similar but more volatile pattern, beginning at a higher 33.97% in 2019 and falling sharply to -22.12% in 2023. These figures strongly indicate increasing operational challenges or cost pressures impacting profitability.

Return on Equity (ROE)

The reported ROE declined from 13.1% in 2019 to a negative 8.59% in 2023, with a consistent decrease each year that turned negative starting in 2022. Adjusted ROE shows a steeper decline from 13.63% to -8.19% over the same period. This trend reflects diminishing returns generated on shareholders' equity and signals worsening financial performance.

Return on Assets (ROA)

The reported ROA dropped considerably from 7.02% in 2019 to -4.49% in 2023, with negative returns beginning in 2022. Adjusted ROA decreased from 8.39% to -4.73% across the same years. This downward trend highlights decreasing profitability relative to total asset base, reinforcing the challenges reflected in other profitability metrics.

Sales Trends

The sales figures demonstrate a consistent increase from 2019 to 2021, rising from 9,740 million USD to 12,222 million USD. However, from 2021 onwards, they show a slight decline, reaching 11,815 million USD in 2023. This indicates a peak in 2021 followed by a period of mild contraction or stabilization in revenue.

Total Assets Dynamics

Total assets remained relatively stable from 2019 through 2022, fluctuating within a narrow range between approximately 38,482 million USD and 41,369 million USD. A significant increase occurred in 2023, with total assets rising sharply to 55,506 million USD. This late surge suggests substantial asset acquisition or revaluation during that year.

Reported Total Asset Turnover

The reported total asset turnover ratio rose gradually from 0.24 in 2019 to 0.31 in 2022, indicating improving efficiency in generating sales from the asset base. However, in 2023, the ratio decreased markedly to 0.21, aligning with the substantial increase in total assets without a corresponding increase in sales, signaling reduced asset utilization efficiency in that year.

Adjusted Total Assets and Turnover

The adjusted total assets trend and values closely mirror those of the reported total assets, showing stability until 2022 followed by a notable rise in 2023. Similarly, the adjusted total asset turnover ratio follows the same pattern as the reported ratio, improving steadily through 2022 and then dropping sharply in 2023. This confirms that adjustments made to total assets do not materially alter the overall asset efficiency trends observed.

Overall Insights

The data reflects a phase of growth and improving asset efficiency up to 2021-2022, with sales and turnover ratios increasing. The year 2023 marks a turning point, highlighted by a significant asset base expansion accompanied by a decline in sales and asset turnover ratio. This may suggest either capital investment initiatives not yet generating proportional sales or external factors impacting operational efficiency.

The financial analysis reveals distinct patterns and notable shifts in the company's capital structure over the five-year period from 2019 to 2023.

Total Debt

Total debt decreased gradually from 2019 through 2022, falling from 6,834 million USD to 6,132 million USD. However, in 2023, total debt sharply increased to 9,436 million USD, indicating a significant rise in the company's leverage during that final year.

Total Stockholders’ Equity

Stockholders’ equity experienced modest growth from 21,420 million USD in 2019 to a peak of 23,008 million USD in 2020. Thereafter, equity decreased steadily to 19,354 million USD in 2022 before rebounding considerably to 29,027 million USD in 2023. This volatility points to changes in retained earnings, asset revaluations, or equity financing events.

Reported Debt to Equity Ratio

This ratio remained fairly stable, fluctuating in a narrow range between 0.29 and 0.32 from 2019 to 2022. In 2023, it edged slightly higher to 0.33, consistent with the spike in total debt combined with the surge in equity, suggesting a balanced but increased leverage position.

Adjusted Total Debt and Equity

Adjusted figures show a similar trend: adjusted debt declined steadily from 6,909 million USD in 2019 to 6,248 million USD in 2022 before rising sharply to 9,541 million USD in 2023. Adjusted equity also peaked in 2020 at 25,615 million USD, decreased subsequently, and then increased markedly to 31,924 million USD in 2023.

Adjusted Debt to Equity Ratio

This ratio reveals a slight downward trend through 2021, moving from 0.28 to 0.27, then rising to 0.30 in 2022 and remaining flat at 0.30 in 2023. This indicates that, despite increased debt in 2023, equity growth was proportionate enough to keep the leverage ratio steady at a moderate level.

In summary, the data exhibit a period of deleveraging from 2019 to 2022, characterized by gradual reduction in debt and equity contraction after 2020. The year 2023 diverged sharply from this pattern with significant increases in both debt and equity, resulting in a relatively stable leverage position despite higher absolute debt levels. The overall financial profile suggests deliberate capital restructuring actions or market-related events leading to renewed borrowing and capitalization in the latest year.

Total Debt

The total debt exhibited a downward trend from 2019 through 2022, decreasing from $6,834 million to $6,132 million. However, in 2023 there was a significant increase to $9,436 million, reversing the prior trend and indicating a notable rise in borrowing or liabilities during the most recent period.

Total Capital

Total capital demonstrated fluctuations over the examined periods. It increased from $28,254 million in 2019 to a peak of $29,710 million in 2020, followed by declines in 2021 and 2022, reaching $25,486 million. In 2023, total capital surged to $38,463 million, the highest level across the five years.

Reported Debt to Capital Ratio

The ratio of reported debt to capital remained relatively stable from 2019 to 2022, ranging narrowly between 0.22 and 0.24. In 2023 there was a slight increase to 0.25, reflecting increased leverage consistent with the rise in total debt and capital.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to reported total debt, declining gradually from $6,909 million in 2019 to $6,248 million in 2022. In 2023, it rose sharply to $9,541 million, indicating a sizeable increase in adjusted borrowing or obligations during the latest year.

Adjusted Total Capital

The adjusted total capital peaked in 2020 at $32,425 million before descending consecutively through 2022 to $27,417 million. A strong recovery occurred in 2023, with adjusted capital reaching $41,465 million, the highest point in the series.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio was fairly stable between 0.21 and 0.23 from 2019 to 2022. In 2023, the ratio remained at 0.23, slightly higher than earlier years but showing limited movement despite the substantial increases in both adjusted debt and capital.

The financial data reveals several notable trends over the five-year period under review. Total assets initially increased from 39,974 million USD in 2019 to a peak of 41,369 million USD in 2020, followed by a slight decline to 38,482 million USD in 2022. Thereafter, a significant increase occurred in 2023, with total assets rising sharply to 55,506 million USD.

In terms of stockholders' equity, a similar pattern is observed. Equity grew from 21,420 million USD in 2019 to 23,008 million USD in 2020, then declined steadily to 19,354 million USD by 2022. In 2023, equity rebounded markedly to 29,027 million USD. This fluctuation in equity aligns with the changes seen in total assets, suggesting parallel movements in company financing or valuation adjustments during the period.

The reported financial leverage ratio, calculated as total assets divided by stockholders' equity, ranged between 1.80 and 1.99 over the years. Starting at 1.87 in 2019, it decreased slightly to 1.80 in 2020, then increased to 1.99 in 2022, before moderating to 1.91 in 2023. This indicates a moderate increase in leverage in 2022, pointing toward higher relative liabilities or debt financing, which slightly eased the following year.

Considering adjusted total assets and equity, a comparable trend emerges. Adjusted total assets decreased from 39,425 million USD in 2019 to 38,309 million USD in 2022 before rising substantially to 55,238 million USD in 2023. Adjusted total equity follows a parallel trajectory, decreasing from 24,275 million USD in 2019 to 21,169 million USD in 2022, then climbing to 31,924 million USD in 2023.

The adjusted financial leverage ratio manifests a gradual upward trend from 1.62 in 2019 to 1.81 in 2022, subsequently decreasing to 1.73 in 2023. This mirrors the reported leverage pattern and suggests a cautious management of financial risk after reaching a peak leverage in 2022.

Overall, the data indicates a period of relative stability and slight decline in asset and equity values through 2022, followed by strong growth in both metrics in 2023. Leverage ratios suggest an increased reliance on debt or liabilities to finance operations in 2022, with a moderated approach thereafter. These patterns may reflect strategic corporate decisions, market conditions, or other external factors influencing financial structure and resource allocation during the period analyzed.

The financial data indicates significant fluctuations in profitability and sales performance over the analyzed five-year period.

Net Income (Loss) Attributable to Stockholders (US$ in millions)

The net income showed a peak of 2829 million in 2020, following strong earnings in 2019 at 2805 million but experienced a sharp decline thereafter. In 2021, income dropped considerably to 1166 million, followed by a loss of 429 million in 2022, and a further intensified loss amounting to 2494 million in 2023.

Sales (US$ in millions)

Sales values increased steadily from 9740 million in 2019 to a peak of 12222 million in 2021. This upward trend plateaued with slight declines in 2022 and 2023, recording 11915 million and 11812 million respectively, representing relative stability but a slight reduction compared to the peak year.

Reported Net Profit Margin (%)

The reported net profit margin displayed a declining trend over the period: starting at a robust 28.8% in 2019, it decreased consistently every year, falling to 24.61% in 2020 and further to 9.54% in 2021. Subsequently, margins turned negative in 2022 (-3.6%) and deteriorated further to -21.11% in 2023, highlighting increasing operational challenges or losses.

Adjusted Net Income (Loss) (US$ in millions)

Adjusted net income followed a similar trajectory to reported net income but with slightly different figures. It started at a high of 3309 million in 2019, decreased substantially to 2455 million in 2020, and then further dropped to 150 million in 2021. The adjusted figures turned negative in 2022 (-515 million) and worsened to -2613 million in 2023, indicating significant financial distress during the last two years.

Adjusted Net Profit Margin (%)

The adjusted net profit margin also showed marked decline over the five years, beginning from a strong 33.97% in 2019. This declined to 21.35% in 2020 and further to a minimal 1.23% in 2021. The margin became negative in 2022 at -4.32%, and deteriorated further to -22.12% in 2023, mirroring the trend of adjusted net income.

Overall, the analysis reveals a stable increase in sales up to 2021, followed by a marginal decline. Despite solid sales figures, profitability measures declined sharply starting 2021, leading to losses in the last two reported years. Both reported and adjusted profitability margins exhibit consistent negative trends, signaling worsening financial performance, possibly due to rising costs, diminishing operational efficiency, or other adverse factors impacting the company’s earnings capacity.

The financial data reveals a notable shift in profitability and equity trends over the five-year period ending December 31, 2023. Net income attributable to stockholders initially showed growth from 2019 to 2020, increasing slightly from 2805 million to 2829 million US dollars. However, this was followed by a significant decline in 2021 to 1166 million, and a transition into losses in 2022 and 2023, with figures at -429 million and -2494 million respectively. This decline is mirrored by the reported return on equity (ROE), which dropped from a positive 13.1% in 2019 to negative values of -2.22% and -8.59% in 2022 and 2023.

Adjusted net income presents a similar trajectory, although the initial decline from 3309 million in 2019 to 2455 million in 2020 was more pronounced. The adjusted net income then fell sharply to 150 million in 2021 and turned negative in 2022 and 2023, reaching -515 million and -2613 million respectively. The adjusted ROE follows this trend, beginning at 13.63% in 2019, decreasing steadily and dipping into negative territory from 2022 onward, ending at -8.19% in 2023.

Examining the equity positions, total stockholders’ equity demonstrates fluctuations over the period. Equity rose from 21420 million in 2019 to a peak of 23008 million in 2020, but then declined to 19354 million by 2022, before recovering strongly to 29027 million in 2023. The adjusted total equity follows a similar trajectory, growing initially, then declining, and finally increasing significantly to 31924 million in 2023.

Profitability Trends

The company experienced strong profitability through 2019 and 2020, followed by a sharp decline starting in 2021 and sustained losses through 2023. Both reported and adjusted earnings and returns on equity reflect this downturn, with adjusted metrics indicating a more severe reduction in profitability.

Equity Position

Total and adjusted equity exhibited downward pressure from 2020 through 2022, paralleling the decline in profitability. Despite losses, equity values rebounded significantly in 2023, suggesting capital injections, asset revaluation, or other equity enhancements.

Return on Equity

The movement from robust positive ROE to negative figures signals deteriorating efficiency in generating profits from equity. The adjusted ROE, which accounts for certain items excluded from reported figures, consistently shows a harsher profitability environment.

In summary, the financial data indicates a period of initial growth followed by a marked decline in earnings and profitability beginning in 2021, culminating in substantial losses by 2023. Despite this, the equity base expanded considerably in the most recent year, which may reflect strategic financial measures to stabilize or position the company for recovery.

The financial data reveals a notable shift in performance indicators over the five-year period ending in 2023. The net income attributable to stockholders shows a significant decline from a positive $2,805 million in 2019 to a substantial loss of $2,494 million in 2023. This downward trend is consistent annually, with net income turning negative starting in 2022.

Total assets demonstrate some fluctuation, increasing from $39,974 million in 2019 to $41,369 million in 2020, then slightly declining to $38,482 million in 2022 before a considerable rise to $55,506 million in 2023. This sharp increase in assets in the last year contrasts with the concurrent significant loss in net income, suggesting possible investments or asset acquisitions that have not yet translated into profitability.

Reported Return on Assets (ROA) mirrors the net income trend, starting at 7.02% in 2019 and progressively decreasing to a negative 4.49% in 2023. This indicates diminishing efficiency in using assets to generate profit, culminating in a loss relative to asset base in the final two years.

When focusing on adjusted figures, the adjusted net income exhibits a comparably declining trend, moving from $3,309 million in 2019 down to a loss of $2,613 million in 2023. The adjusted total assets follow a similar trajectory to total assets, with a generally stable range until the marked increase in 2023.

The adjusted ROA declines more sharply than the reported ROA, falling from 8.39% in 2019 to negative 4.73% in 2023. This steeper decline in adjusted returns further underscores the reduced profitability and operational challenges faced during recent years.

Summary of Trends

- A consistent decline in net income and adjusted net income over the period, with losses recorded in the final two years.

- Total and adjusted assets remain relatively stable through 2022, followed by a notable increase in 2023.

- Both reported and adjusted ROA decrease steadily, becoming negative in 2022 and 2023, reflecting decreased asset efficiency and profitability.

- The divergence between rising asset levels and declining income in the latest year suggests increased investment or asset build-up with delayed financial returns.