Twitter Inc. (NYSE:TWTR)

Current Assets Trend

There is a general upward trend in current assets from the end of 2017 through 2020, increasing from approximately 5.32 billion to 8.64 billion US dollars. However, in 2021, a slight decrease is observed, with current assets declining to approximately 7.92 billion.

Adjusted Current Assets Trend

The adjusted current assets show a trend very similar to current assets, starting at approximately 5.33 billion US dollars in 2017 and growing steadily to about 8.65 billion in 2020. Like current assets, adjusted current assets also experience a decrease in 2021, down to roughly 7.93 billion.

Comparison Between Current and Adjusted Current Assets

The adjusted current assets are consistently slightly higher than the unadjusted current assets for all years presented. The difference between the two measures remains relatively small and stable across the periods.

Observations on Asset Growth and Decline

The data indicates robust growth in current and adjusted current assets over the first four periods, with the highest point typically reached in 2020. The subsequent decline in 2021 might suggest changes in liquidity management, asset composition, or other operational factors during that year.

The analysis of the annual financial data reveals several notable trends in the company's asset base over the five-year period from December 31, 2017, through December 31, 2021.

Total Assets

The total assets have demonstrated a consistent upward trajectory throughout the period analyzed. Starting at approximately 7.4 billion USD at the end of 2017, the total assets increased steadily each year, reaching around 14.1 billion USD by the end of 2021. This reflects a near doubling of the asset base within five years, indicative of sustained growth possibly driven by acquisitions, investments, or organic expansion.

Adjusted Total Assets

The adjusted total assets show a similar increasing pattern but with slightly different magnitudes each year. Beginning at approximately 7.95 billion USD in 2017, there was a small decline in 2018 followed by a dip in 2019 to about 10.8 billion USD. From 2019 onwards, adjusted assets rose again, peaking at approximately 12.9 billion USD in 2021. The fluctuation in adjusted figures compared to total assets suggests that certain adjustments or reclassifications have affected the asset valuation, leading to periods of contraction and expansion in the adjusted figures.

Comparative Insights

Comparing both metrics, total assets consistently remain just below or in close range to the adjusted total assets, except for 2018 when the adjusted total assets are slightly lower. The steady increase in total assets reflects growing resource availability. However, the more variable adjusted total assets suggest some underlying volatility or revaluation practices impacting the perceived asset strength. This disparity warrants further investigation into the nature of adjustments made during these periods.

Overall Interpretation

The overall asset growth trend indicates a positive momentum in the company's financial position, demonstrating an expanding asset base that supports future operations and growth initiatives. The divergence between total and adjusted assets signals the importance of understanding the composition and quality of these assets, as adjustments may reflect impairment, depreciation, or other accounting measures.

The financial data reveals notable fluctuations in the current liabilities and adjusted current liabilities over the five-year period. Both metrics exhibit a general increasing trend from 2017 through 2021, though with variations in magnitude and direction year-over-year.

Current liabilities

The current liabilities rose significantly from 583,278 thousand USD in 2017 to a peak of 1,951,826 thousand USD in 2020. This represents an increase of over 230% across this three-year span. However, in 2021, current liabilities decreased to 1,343,867 thousand USD, which is a notable reduction of approximately 31% compared to the prior year but still more than double the 2017 level.

Adjusted current liabilities

The adjusted current liabilities followed a similar trajectory. Starting at 555,454 thousand USD in 2017, they increased sharply to 1,893,850 thousand USD in 2020. This figure subsequently decreased to 1,265,326 thousand USD in 2021, closely mirroring the trend seen in current liabilities. The adjusted values remain slightly lower than the reported current liabilities throughout the period, indicating consistent adjustments that reduce the reported liabilities.

Overall, the data indicates a period of rapid growth in current obligations up to 2020, followed by a substantial decline in 2021. The adjustments applied to current liabilities maintain a consistent relationship with the reported figures, suggesting stable accounting practices or adjustments in classification over time. The significant increase and subsequent decrease in liabilities may reflect strategic financing decisions, operational changes, or external market conditions impacting short-term obligations.

The analysis of the financial data over the five-year period reveals a consistent upward trend in both total liabilities and adjusted total liabilities. These increases indicate a growing level of obligations for the entity, which may reflect expansion activities, increased borrowing, or changes in financial strategy.

Total liabilities

The total liabilities showed a significant rise from 2,365,259 thousand US dollars at the end of 2017 to 6,752,317 thousand US dollars by the end of 2021. This represents nearly a threefold increase over the period. The most notable yearly growth occurred between 2019 and 2020, where liabilities escalated from approximately 3,999,003 to 5,409,008 thousand US dollars. This upward movement suggests an increased reliance on external funding or rising obligations during that time frame.

Adjusted total liabilities

Similarly, adjusted total liabilities also increased substantially from 2,883,623 thousand US dollars in 2017 to 6,671,931 thousand US dollars in 2021. Interestingly, the adjusted figure slightly decreased in 2019 compared to 2018 (from about 4,088,855 to 3,929,177 thousand US dollars), which may indicate the effect of certain adjustments or reclassifications that year. Nonetheless, from 2019 onwards, the adjusted liabilities resumed an upward trajectory, peaking near the 2021 level. The parallel movement with total liabilities in most years suggests consistent adjustments relative to the reported total liabilities.

Overall, the data indicate a pronounced rise in liabilities across the observed years, reflecting potential strategic financial decisions or operational expansions that increased the entity’s debt or obligations. The pattern underscores the importance of monitoring leverage and ensuring that growth in liabilities corresponds with adequate asset growth or revenue generation to maintain financial stability.

Stockholders’ Equity

The stockholders’ equity shows a general upward trend from 2017 to 2019, increasing from approximately 5.05 billion USD to about 8.70 billion USD. This indicates a strengthening of the company’s net asset base during this period. However, in 2020, there is a noted decline to roughly 7.97 billion USD, followed by a further decrease in 2021 to approximately 7.31 billion USD. This downward movement over the last two years suggests a reduction in the equity capital or retained earnings, which could be due to losses, dividend payments exceeding earnings, or share repurchases.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity displays a different trajectory compared to the unadjusted figure. After an initial rise from roughly 5.07 billion USD in 2017 to about 6.04 billion USD in 2018, it continues to increase steadily through 2019 and 2020, peaking at approximately 7.25 billion USD. Nevertheless, a significant decrease occurs in 2021, falling to around 6.25 billion USD. While the adjusted measure remains consistently lower than the unadjusted stockholders’ equity from 2018 onward, both measures exhibit a downward correction in 2021. This suggests adjustments made for certain items, such as intangible assets or other accounting considerations, affect the equity valuation and highlight possible areas of financial strain or reevaluation.

Comparative Insights

Between 2017 and 2019, both stockholders’ equity and adjusted stockholders’ equity show growth, indicating an overall strengthening in the financial position. The subsequent decline in both metrics in 2020 and 2021 reflects possible operational or market challenges impacting the company’s equity position. The parallel downward trend in these two measures in the last two years may warrant further investigation into the causes, such as operational losses, changes in asset valuations, or strategic financial decisions.

The annual financial data reveals several notable trends in the company's capital structure over the five-year period from the end of 2017 through the end of 2021.

Total Reported Debt

This liability component shows a generally increasing trend, rising steadily from approximately 1.79 billion USD in 2017 to over 4.25 billion USD in 2021. A minor decline is observed between 2018 and 2019, but the overall trajectory is upward, indicating a growing reliance on debt financing over the period analyzed.

Stockholders’ Equity

Equity exhibits an initial upward trend from about 5.05 billion USD in 2017, peaking at approximately 8.70 billion USD in 2019. After this peak, it declines to around 7.30 billion USD by 2021. This pattern suggests strengthening equity up to 2019 followed by a reduction, which may reflect changes in retained earnings, distributions, or other equity components.

Total Reported Capital

This metric, representing the sum of debt and equity, consistently increases from about 6.84 billion USD in 2017 to approximately 11.56 billion USD in 2021. The steady growth indicates an overall expansion in the company’s capital base, driven by increases in both debt and, to a lesser extent in later years, equity.

Adjusted Total Debt

The adjusted measure of debt closely parallels the pattern of total reported debt, starting at around 2.34 billion USD in 2017 and climbing to roughly 5.55 billion USD in 2021. The increase is consistent, underscoring the rising use of debt instruments when considering adjusted values.

Adjusted Stockholders’ Equity

Adjusted equity, similar to the reported equity, rises from approximately 5.07 billion USD in 2017 to nearly 7.25 billion USD in 2020, then declines to about 6.25 billion USD in 2021. This indicates that the adjustments made do not significantly alter the overall equity trend but highlight a reduction in the final year.

Adjusted Total Capital

Adjusted total capital shows growth from around 7.41 billion USD in 2017 to about 11.80 billion USD in 2021. The steady increase reflects the cumulative effect of the growing adjusted debt, partially offset by the less pronounced gains in adjusted equity, especially in the latter years.

Overall, the data suggests an increasing emphasis on leveraging debt within the company's capital structure while experiencing some variability in equity levels after 2019. The growth in total reported and adjusted capital denotes an expansion in financial resources, albeit accompanied by potentially higher financial risk due to the rising debt burden. The decline in equity figures in recent years could merit further investigation into underlying causes such as losses, dividend payments, or share repurchases.

The financial data reveals a consistent upward trend in both reported revenue and adjusted revenue over the five-year period. Revenue grew steadily each year, starting from approximately 2.44 billion US dollars in 2017 and reaching over 5.07 billion US dollars in 2021. This represents more than a doubling of revenue within this timeframe.

Adjusted revenue exhibits a similar growth pattern, mirroring the reported revenue values closely, with a minor difference between the two figures in each year. Adjusted revenue started at around 2.44 billion US dollars in 2017 and increased to roughly 5.09 billion US dollars in 2021.

Revenue Growth Rate Trends

The rate of increase appears to modestly accelerate towards the end of the period, especially notable between 2020 and 2021, where revenue increased by approximately 36.67%, which is higher than the growth between preceding years.

Comparison Between Reported and Adjusted Revenue

The consistent proximity of adjusted revenue to the reported revenue suggests stable adjustments, likely reflecting routine reconciliations or non-recurring item exclusions without significant fluctuations affecting the overall revenue figures.

General Insights

The company's revenue trajectory demonstrates strong and sustained growth, indicating expanding business operations or increased market penetration. The significant jump in 2021 may reflect strategic initiatives or favorable market conditions contributing to revenue acceleration.

Net income (loss)

Exhibits significant volatility across the analyzed periods, with a negative value of -108,063 thousand US dollars at the end of 2017. A marked recovery is observed in 2018 and 2019, with positive net income figures of 1,205,596 and 1,465,659 thousand US dollars respectively, indicating strong profitability during these years. However, in 2020, the company encounters a substantial net loss of -1,135,626 thousand US dollars, followed by a reduced net loss of -221,409 thousand US dollars in 2021, signaling a partial mitigation of losses but overall financial instability in the most recent periods.

Adjusted net income (loss)

The adjusted net income data generally aligns with the trends observed in net income but reflects smaller magnitudes, suggesting some adjustments related to non-recurring or non-operational items. Starting with a negative adjusted net loss of -84,425 thousand US dollars in 2017, the figure improves significantly in 2018 to 379,398 thousand US dollars and slightly declines to 366,818 thousand US dollars in 2019, indicating consistent adjusted profitability. The adjusted net income then drops to a slight loss of -59,054 thousand US dollars in 2020 and further declines to a larger loss of -485,854 thousand US dollars in 2021, revealing increasing challenges in maintaining profitability after adjustments in the last two years.

Overall Trends and Insights

The data reveals a peak profitability phase in 2018 and 2019, followed by a pronounced deterioration in 2020 and 2021, as evidenced by both net income and adjusted net income figures. The disparity between net income and adjusted net income losses in recent years may indicate that extraordinary items or adjustments somewhat cushion the losses but do not fully mitigate the underlying negative performance. This suggests a period of financial challenge or restructuring that has impacted earnings substantially after 2019.