Stock Analysis on Net

Union Pacific Corp. (NYSE:UNP)

$24.99

Analysis of Income Taxes

Microsoft Excel

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Income Tax Expense (Benefit)

Union Pacific Corp., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal
State
Foreign
Current tax expense
Federal
State
Foreign
Deferred and other tax expense
Income tax expense

Based on: 10-K (reporting date: 2024-12-31), 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).


The analysis of the annual current and deferred income tax expenses over the five-year period reveals several notable trends and fluctuations. The data indicates that current tax expenses have generally increased, while deferred and other tax expenses have shown a downward trend with some volatility.

Current Tax Expense
The current tax expense consistently rose from 1291 million US$ in 2020 to 2019 million US$ in 2024. This represents an overall upward trajectory with a substantial increase between 2020 and 2021, where it jumped by approximately 39.5%. Subsequent years saw smaller increases, with a slight decline from 2022 (1812 million US$) to 2023 (1737 million US$), before rebounding sharply in 2024.
Deferred and Other Tax Expense
In contrast, deferred and other tax expenses showed a decreasing trend over the period. Starting at 340 million US$ in 2020, the amount dropped significantly in 2021 to 154 million US$, then temporarily rose to 262 million US$ in 2022. Following this, it declined again in 2023 to 117 million US$ and further decreased to 28 million US$ in 2024. This pattern suggests reduced recognition of deferred tax liabilities or assets over time.
Overall Income Tax Expense
The total income tax expense, combining current and deferred components, increased from 1631 million US$ in 2020 to 2047 million US$ in 2024. The growth was not linear, with a peak in 2022 at 2074 million US$, followed by a decline in 2023 to 1854 million US$, and a subsequent recovery in 2024. This overall movement reflects the interplay between the rising current tax expense and the diminishing deferred tax charges.

In summary, while the current tax expense shows a clear rising trend indicative of increasing taxable income or changes in tax rates or policies, the deferred and other tax expense presents a diminishing pattern, likely reflecting changes in timing differences or tax planning strategies. The total income tax expense follows these dynamics, with fluctuations that highlight the relative impact of these components on the company's tax obligations over the observed period.


Effective Income Tax Rate (EITR)

Union Pacific Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Federal statutory tax rate
State statutory rates, net of federal benefits
Dividends received deduction
Excess tax benefits from equity compensation plans
Deferred tax adjustments
Other
Effective tax rate

Based on: 10-K (reporting date: 2024-12-31), 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).


The effective tax rate shows a general decreasing trend from 23.4% in 2020 to 22.5% in 2023, followed by a slight increase to 23.3% in 2024. This indicates a modest improvement in overall tax efficiency over the period, although the rise in the final year suggests some changes impacting tax expenses.

Federal statutory tax rate
Remains constant at 21% throughout the entire period, indicating no federal tax rate changes affecting the company.
State statutory rates, net of federal benefits
Show a gradual decline from 3.7% in 2020 and 2021 to 3.2% by 2024, reflecting either reductions in state tax rates or increased efficiencies in managing state tax liabilities.
Dividends received deduction
Maintains a fairly stable negative impact ranging between -0.5% and -0.6%, indicating consistent benefits from dividends received deductions over the years.
Excess tax benefits from equity compensation plans
Exhibits a steady decrease in magnitude from -0.8% in 2020 to -0.1% in 2023, with a slight increase to -0.2% in 2024. This suggests a reduction in tax benefits derived from equity compensation plans, potentially reflecting changes in compensation structures or tax treatment.
Deferred tax adjustments
Trend shows increasing negative impact from -0.1% in 2020, peaking at -1.2% in 2023, with no data reported for 2024. This could indicate larger deferred tax liabilities or changes in tax timing differences, which have a significant effect on the tax rate over the period.
Other
The impact fluctuates, moving from 0.1% in 2020 to negative values in subsequent years, including -0.2% in the latest reported year, suggesting minor and variable adjustments from miscellaneous tax items.

In summary, the interplay of stable federal rates, declining state taxes, and diminishing equity compensation benefits have generally contributed to a lower effective tax rate. However, the increasing deferred tax adjustments have offset some of these improvements, culminating in the slight uptick in the effective tax rate observed in 2024. Such dynamics underline the importance of monitoring deferred tax items and state tax strategies to optimize the overall tax position.


Components of Deferred Tax Assets and Liabilities

Union Pacific Corp., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating lease liabilities
Accrued casualty costs
Accrued wages
Stock compensation
Retiree benefits
Other
Deferred income tax assets
Property
Operating lease assets
Other
Deferred income tax liabilities
Net deferred income tax asset (liability)

Based on: 10-K (reporting date: 2024-12-31), 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).


The financial data reveals various trends in the liabilities, assets, and other financial items over the five-year period from December 31, 2020, through December 31, 2024.

Operating Lease Liabilities
The operating lease liabilities exhibited an initial increase from 396 million USD in 2020 to 434 million USD in 2021, followed by a gradual decline to 401 million USD in 2022 and further down to 308 million USD by 2024. This pattern indicates a reduction in leased obligations after peaking in 2021.
Accrued Casualty Costs
Accrued casualty costs steadily increased from 143 million USD in 2020 to 172 million USD in 2024, reflecting a consistent rise in provisions or expenses related to casualty liabilities over the period.
Accrued Wages
There was a gradual increase in accrued wages from 40 million USD in 2020 to 51 million USD in 2024, mostly steady with a plateau between 2022 and 2023 before a slight increase in 2024.
Stock Compensation
Stock compensation remained stable at 26 million USD from 2020 through 2023, with a minor increase to 28 million USD in 2024, showing consistency with a slight uptick at the end of the period.
Retiree Benefits
Retiree benefits saw a sharp decline from 255 million USD in 2020 to 39 million USD in 2021, after which data is missing for the subsequent years. The sudden reduction and missing values indicate a change in accounting, classification, or reporting of these benefits.
Other Assets/Liabilities (Positive Values)
Other items recorded as positive values increased from 208 million USD in 2020 to a peak of 256 million USD in 2021. Afterward, there was a decline to 186 million USD in 2023 followed by a slight recovery to 205 million USD in 2024, suggesting volatility or variability in miscellaneous asset or liability categories.
Deferred Income Tax Assets
Deferred income tax assets showed a clear downward trend, decreasing from 1,068 million USD in 2020 to 764 million USD in 2024. This decline may imply reduced temporary differences or changes in future tax benefits expected by the entity.
Property
Property values are recorded as negative values, which likely represent property-related liabilities or contra-accounts. The amounts increased in magnitude from -12,474 million USD in 2020 to -13,020 million USD in 2024, indicating increasing asset base or accumulated depreciation/liabilities associated with property over time.
Operating Lease Assets
Operating lease assets followed a similar pattern to lease liabilities, increasing negatively from -397 million USD in 2020 to -441 million USD in 2021, then progressively decreasing in magnitude to -314 million USD by 2024. This aligns with the reduction observed in lease liabilities.
Other Assets/Liabilities (Negative Values)
Items classified as other negative values increased in magnitude from -444 million USD in 2020 to -591 million USD in 2022, decreased to -556 million USD in 2023, and then rose again to -581 million USD in 2024, indicating fluctuations in these residual balance sheet items.
Deferred Income Tax Liabilities
Deferred income tax liabilities showed an increasing trend in magnitude from -13,315 million USD in 2020, reaching a peak of -13,947 million USD in 2023, with a slight reduction to -13,915 million USD in 2024. This suggests growing deferred tax obligations over the period.
Net Deferred Income Tax Asset (Liability)
The net deferred income tax position, being a consolidated figure of assets and liabilities, worsened slightly from -12,247 million USD in 2020 to -13,151 million USD in 2024. This trend reflects an overall increase in net deferred tax liabilities, which may impact future tax payments.

Overall, the data depicts a period marked by gradual increases in accrued liabilities such as casualty costs and wages, a pronounced reduction in retiree benefits liabilities after 2020, and a consistent decline in deferred tax assets juxtaposed against increasing deferred tax liabilities. Lease-related assets and liabilities both decreased after peaking in 2021, indicating possible lease terminations or contract renegotiations. Changes in "Other" categories suggest some variability in miscellaneous financial items but without a clear directional trend. The increasing net deferred tax liability position could have implications on the company's future tax strategy and cash flows.


Deferred Tax Assets and Liabilities, Classification

Union Pacific Corp., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net deferred income tax liability

Based on: 10-K (reporting date: 2024-12-31), 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).


Trend in Net Deferred Income Tax Liability
The net deferred income tax liability demonstrated a steady increase over the five-year period from December 31, 2020 through December 31, 2024. Specifically, the liability increased from $12,247 million at the end of 2020 to $13,151 million at the end of 2024. This represents an approximate growth of 7.3% over the five years.
The year-over-year increments show a consistent pattern: from 2020 to 2021, the liability rose by $428 million; from 2021 to 2022, the increase was $358 million; the growth tapered slightly to $90 million from 2022 to 2023; and finally, a marginal increment of $28 million from 2023 to 2024.
This pattern suggests a gradually slowing increase in the deferred tax liability, possibly reflecting changes in temporary differences affecting taxable income or evolving tax rates or regulations. While the growth remains positive, the decreasing annual magnitudes indicate a stabilization or possible upcoming plateau in the deferred income tax liability balance.

Adjustments to Financial Statements: Removal of Deferred Taxes

Union Pacific Corp., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Liabilities
Total liabilities (as reported)
Less: Noncurrent deferred tax liabilities, net
Total liabilities (adjusted)
Adjustment to Common Shareholders’ Equity
Common shareholders’ equity (as reported)
Less: Net deferred tax assets (liabilities)
Common shareholders’ equity (adjusted)
Adjustment to Net Income
Net income (as reported)
Add: Deferred income tax expense (benefit)
Net income (adjusted)

Based on: 10-K (reporting date: 2024-12-31), 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).


The data exhibits distinct patterns and trends in reported and adjusted financial measures over the five-year period.

Total Liabilities
Reported total liabilities show a generally increasing trend from 45,440 million USD in 2020 to a peak of 53,286 million USD in 2022, followed by a decrease through 2023 and 2024 to 50,825 million USD. Adjusted total liabilities follow a similar trajectory but at consistently lower levels, starting at 33,193 million USD in 2020, rising steadily to 40,253 million USD in 2022, and then declining to 37,674 million USD by 2024. The adjustment reduces the liability figures significantly compared to reported values each year.
Common Shareholders’ Equity
Reported common shareholders’ equity decreases from 16,958 million USD in 2020 to 12,163 million USD in 2022, indicating a declining equity base during this period. However, it recovers in subsequent years, rising to 14,788 million USD in 2023 and reaching 16,890 million USD in 2024. In contrast, adjusted common shareholders’ equity remains consistently higher than reported equity across all years. Although it decreases from 29,205 million USD in 2020 to 25,196 million USD in 2022, it too recovers subsequently to 30,041 million USD by 2024, demonstrating a robust equity position after adjustments.
Net Income
Reported net income shows a steady upward trend from 5,349 million USD in 2020 to 6,998 million USD in 2022, followed by a slight decline to 6,379 million USD in 2023, and then an increase to 6,747 million USD in 2024. Adjusted net income consistently exceeds reported net income, moving from 5,689 million USD in 2020 to a peak of 7,260 million USD in 2022, then declining to 6,496 million USD in 2023 and recovering marginally to 6,775 million USD in 2024. The adjustments result in a smoother and typically higher profitability profile.

Overall, the adjustments applied to reported figures notably reduce total liabilities and increase both shareholders’ equity and net income, indicating a more favorable financial position when considering deferred tax impacts. The periods of 2020 to 2022 show some stress with rising liabilities and decreasing equity, but there is a clear recovery trend from 2023 onwards. The alignment in the direction of changes between reported and adjusted figures suggests consistency in underlying operational performance, with adjustments refining the presentation and providing a clearer illustration of financial health.


Union Pacific Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Union Pacific Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net Profit Margin
Reported net profit margin
Adjusted net profit margin
Financial Leverage
Reported financial leverage
Adjusted financial leverage
Return on Equity (ROE)
Reported ROE
Adjusted ROE
Return on Assets (ROA)
Reported ROA
Adjusted ROA

Based on: 10-K (reporting date: 2024-12-31), 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).


Net Profit Margin
The reported net profit margin experienced fluctuations, initially increasing from 27.38% in 2020 to a peak of 29.92% in 2021, followed by a decline to 26.45% in 2023, and a slight recovery to 27.82% in 2024. Adjusted net profit margin followed a similar trend, reaching its highest at 30.62% in 2021, then decreasing to 26.93% in 2023 before a modest rise to 27.94% in 2024. This pattern suggests a peak in profitability in 2021 with a subsequent adjustment phase.
Financial Leverage
Reported financial leverage increased steadily from 3.68 in 2020, reaching a high of 5.38 in 2022 before decreasing to 4.01 in 2024. Adjusted financial leverage shows a more moderate rise from 2.14 in 2020 to 2.6 in 2022, followed by a decline to 2.25 by 2024. This indicates an initial increase in reliance on debt or other forms of leverage, with a gradual deleveraging trend post-2022.
Return on Equity (ROE)
Reported ROE showed significant volatility and high values, growing sharply from 31.54% in 2020 to an exceptional 57.54% in 2022, then falling to 39.95% in 2024. In contrast, adjusted ROE demonstrated a steadier upward trajectory from 19.48% in 2020 to 28.81% in 2022, followed by a decline to 22.55% in 2024. The disparity between reported and adjusted figures suggests that the adjustments (likely deferred tax items) materially impact perceptions of equity profitability.
Return on Assets (ROA)
Reported ROA increased from 8.57% in 2020 to a peak of 10.69% in 2022, then decreased to 9.96% in 2024. Adjusted ROA followed a similar pattern but generally remained higher than the reported ROA, peaking at 11.09% in 2022 and slightly decreasing to 10.01% in 2024. This indicates consistent asset profitability with a minor decline after 2022, and the adjustments marginally improve reported asset returns.
Overall Observations
The data indicates a peak in profitability and leverage measures during 2021-2022, followed by a retrenchment or normalization phase through 2023 and 2024. Adjusted financial metrics are generally more conservative than reported values, reflecting the impact of deferred income tax adjustments. The declines in leverage and profitability ratios after 2022 may point toward strategic deleveraging or less favorable operational conditions. Despite decreases, returns remain strong relative to typical industry benchmarks.

Union Pacific Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income
Operating revenues
Profitability Ratio
Net profit margin1
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income
Operating revenues
Profitability Ratio
Adjusted net profit margin2

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

1 Net profit margin = 100 × Net income ÷ Operating revenues
= 100 × ÷ =

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Operating revenues
= 100 × ÷ =


Reported Net Income
The reported net income demonstrates an overall increasing trend from 2020 to 2024, rising from $5,349 million in 2020 to $6,747 million in 2024. The most notable increase occurred between 2020 and 2021, followed by a moderate increase in 2022. However, there was a decline in 2023, after which the figure rebounded again in 2024, though it did not surpass the 2022 peak.
Adjusted Net Income
The adjusted net income follows a similar upward trajectory as reported net income, starting at $5,689 million in 2020 and reaching $6,775 million in 2024. Adjusted figures consistently exceed the reported net income across all years. A dip is also observed in 2023, with recovery in 2024, mirroring the pattern observed in reported net income.
Reported Net Profit Margin
The reported net profit margin shows some fluctuations over the years. It increased from 27.38% in 2020 to a peak of 29.92% in 2021, then declined to 28.13% in 2022 and continued to fall to its lowest level at 26.45% in 2023. The margin improved slightly in 2024 to 27.82%, indicating some recovery but not reaching the earlier peak levels.
Adjusted Net Profit Margin
The adjusted net profit margin similarly fluctuates, starting at 29.13% in 2020 and rising to its highest point at 30.62% in 2021. It then declined to 29.19% in 2022 and experienced a more pronounced decrease to 26.93% in 2023. A slight improvement is noted in 2024 to 27.94%, paralleling the pattern seen in the reported margin but consistently showing higher percentages.
Summary of Trends
Both reported and adjusted net incomes indicate general growth over the five-year period, despite a temporary dip in 2023. Net profit margins peaked in 2021 and declined thereafter, suggesting margin pressure or increased costs impacting profitability before slightly recovering in 2024. Adjusted figures are consistently higher than reported figures, reflecting the impact of deferred income tax adjustments on profitability metrics. The simultaneous decline and subsequent recovery in 2023 and 2024 across all metrics may highlight external factors influencing financial performance during that period.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets
Common shareholders’ equity
Solvency Ratio
Financial leverage1
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Total assets
Adjusted common shareholders’ equity
Solvency Ratio
Adjusted financial leverage2

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

1 Financial leverage = Total assets ÷ Common shareholders’ equity
= ÷ =

2 Adjusted financial leverage = Total assets ÷ Adjusted common shareholders’ equity
= ÷ =


Reported Common Shareholders’ Equity
The reported common shareholders’ equity shows a declining trend from US$16,958 million at the end of 2020 to US$12,163 million at the end of 2022. Subsequently, it reverses course and increases to US$16,890 million by the end of 2024. This indicates an initial reduction in equity, followed by a recovery surpassing the 2020 level by the final reported date.
Adjusted Common Shareholders’ Equity
The adjusted common shareholders’ equity experiences a consistent downward trend between 2020 and 2022, decreasing from US$29,205 million to US$25,196 million. However, from 2022 onwards, it rises progressively, reaching US$30,041 million by the end of 2024. This suggests that after a period of decline, adjusted equity strengthens notably, exceeding the value observed in 2020.
Reported Financial Leverage
Reported financial leverage increases from 3.68 in 2020 to a peak of 5.38 in 2022, signaling a growing reliance on debt or other liabilities relative to equity. After 2022, the ratio declines to 4.01 by 2024, reflecting a de-leveraging phase where the company reduces its financial risk exposure over the subsequent two years.
Adjusted Financial Leverage
Adjusted financial leverage shows a gradual increase from 2.14 in 2020 to 2.60 in 2022, indicating rising leverage when accounting for deferred income tax adjustments. From 2022 through 2024, the ratio decreases moderately, ending at 2.25 in 2024, consistent with a reduction in leverage analogous to the reported figures but at a generally lower magnitude.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income
Common shareholders’ equity
Profitability Ratio
ROE1
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income
Adjusted common shareholders’ equity
Profitability Ratio
Adjusted ROE2

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

1 ROE = 100 × Net income ÷ Common shareholders’ equity
= 100 × ÷ =

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted common shareholders’ equity
= 100 × ÷ =


Net Income Trends
Reported net income showed a general upward trend from 2020 to 2022, increasing from 5,349 million USD to 6,998 million USD, followed by a decline in 2023 to 6,379 million USD, and a partial recovery in 2024 to 6,747 million USD. Adjusted net income followed a similar pattern but consistently remained higher than the reported figures, beginning at 5,689 million USD in 2020 and reaching 7,260 million USD in 2022, then decreasing to 6,496 million USD in 2023 before rising slightly to 6,775 million USD in 2024.
Common Shareholders’ Equity
Reported common shareholders’ equity exhibited a declining trend from 16,958 million USD in 2020 down to 12,163 million USD in 2022. However, it rebounded in subsequent years, rising to 14,788 million USD in 2023 and 16,890 million USD in 2024. In contrast, adjusted common shareholders’ equity consistently decreased over the first three periods from 29,205 million USD in 2020 to 25,196 million USD in 2022, followed by increases to 27,911 million USD in 2023 and 30,041 million USD in 2024. Adjusted equity values were substantially higher than reported figures throughout the period.
Return on Equity (ROE)
Reported ROE displayed considerable volatility, climbing sharply from 31.54% in 2020 to a peak of 57.54% in 2022, then decreasing to 43.14% in 2023 and 39.95% in 2024. Adjusted ROE, while lower than reported ROE, showed a consistent upward trend from 19.48% in 2020 to 28.81% in 2022, then a decline to 23.27% in 2023 and 22.55% in 2024, mirroring the pattern of reported ROE but with less dramatic fluctuations.
Insights
The data indicates that adjustments related to reported and deferred income taxes have a significant impact on the financial metrics, as reflected in the consistently higher adjusted net income and shareholders’ equity. The higher adjusted equity levels contribute to lower but potentially more stable adjusted ROE percentages compared to the reported figures. The peak in 2022 across net income and ROE suggests that the company experienced strong profitability during that year, followed by a moderate contraction. Equity patterns also reflect a recovery during 2023 and 2024 following prior declines. Overall, the adjusted data may provide a more conservative and stable view of the company’s financial performance over time.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income
Total assets
Profitability Ratio
ROA1
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income
Total assets
Profitability Ratio
Adjusted ROA2

Based on: 10-K (reporting date: 2024-12-31), 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).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × ÷ =


Net Income Trends
The reported net income exhibited an overall upward trend from US$ 5,349 million in 2020 to US$ 6,747 million in 2024, with a peak of US$ 6,998 million recorded in 2022 followed by a slight decline in 2023. Adjusted net income followed a similar pattern, starting at US$ 5,689 million in 2020, reaching a high of US$ 7,260 million in 2022, and then exhibiting a decrease in 2023 before a modest recovery in 2024.
Return on Assets (ROA) Development
Reported ROA improved from 8.57% in 2020 to a peak of 10.69% in 2022, but then decreased to 9.50% in 2023, with a slight increase to 9.96% in 2024. The adjusted ROA figures were consistently higher than the reported ROA over the period, increasing from 9.12% in 2020 to 11.09% in 2022 before declining to 9.68% in 2023 and rising slightly to 10.01% in 2024.
Comparison Between Reported and Adjusted Figures
Adjusted net income and adjusted ROA were consistently above the reported figures each year, indicating that deferred income tax adjustments had a positive effect on reported profitability measures. The difference between adjusted and reported amounts appears relatively stable over the analyzed period.
Overall Observations
The data shows intermediary growth reaching a peak in 2022, followed by a period of slight decline in 2023 and partial recovery in 2024. Both net income and ROA suggest strong performance improvement up to 2022, with subsequent normalizing adjustments. The deferred income tax corrections helped reflect a more favorable financial performance across all years.