YUM! Brands Inc. (NYSE:YUM)

The financial data regarding the current and deferred income tax expenses over the years reveals several noteworthy trends and fluctuations.

Current Income Tax Expense

The current income tax expense demonstrates a steady increase from 2011 to 2014, rising from 461 million US dollars in 2011 to 578 million US dollars by 2014. It remains constant at 578 million US dollars in 2015, indicating stabilization after several years of growth.

Deferred Income Tax Expense

The deferred income tax expense shows a volatile pattern throughout the period. It starts with a negative value of -137 million US dollars in 2011, shifts to a positive 28 million US dollars in 2012, followed by another negative figure of -24 million US dollars in 2013. The most significant drop occurs in 2014, when it reaches -172 million US dollars, then it partially recovers to -89 million US dollars in 2015. This fluctuation suggests varying timing differences or changes in tax assets and liabilities.

Total Income Tax Provision

The total income tax provision correlates with the patterns observed in current and deferred tax expenses but exhibits its own trend. It grows sharply from 324 million US dollars in 2011 to 537 million US dollars in 2012, decreases slightly to 487 million US dollars in 2013, drops further to 406 million US dollars in 2014, and then increases again to 489 million US dollars in 2015. This trend reflects the combined effect of both current and deferred tax expenses on the overall tax burden.

Overall, the current income tax expense presents a relatively stable and increasing trend, while the deferred income tax expense fluctuates significantly, exerting a substantial impact on the total income tax provision. The volatility in deferred tax suggests changes in underlying tax accounting assumptions or timing differences that require closer examination for understanding the tax strategy and financial planning implications. The total income tax provision reflects these dynamics, with noticeable peaks and troughs over the five-year period.

The analysis of the effective income tax rate along with its contributing components reveals various trends over the five-year period.

U.S. Federal Statutory Tax Rate

The federal statutory tax rate remained constant at 35% throughout the period, indicating no legislative changes affecting this rate.

State Income Tax, Net of Federal Tax Benefit

There is a gradual increase in the state income tax impact, from 0.1% in 2011 rising to 0.7% by 2015, suggesting increased state tax obligations or diminished federal benefits offsetting state taxes.

Statutory Rate Differential Attributable to Foreign Operations

This differential fluctuated but consistently remained negative, with percentages ranging between -7.7% to -13.1%. This pattern implies that foreign operations are taxed at a significantly lower rate than the U.S. statutory rate, positively influencing the overall tax burden reduction.

Adjustments to Reserves and Prior Years

The adjustments show variability without a clear trend, shifting from positive 1.4% in 2011 to negative adjustments in 2012 and 2014, and minor positive values in 2013 and 2015. This fluctuation points to irregular corrections related to prior years' tax reserves.

Net Benefit from LJS and A&W Divestitures

A notable net benefit of -4.3% was recorded in 2011; however, this benefit was not present in subsequent years, implying a one-time effect from these divestitures.

Change in Valuation Allowances

There is a clear upward trend in valuation allowances, increasing from 1.3% in 2011 to 3.0% in 2015. This suggests growing concerns or anticipated difficulties in realizing certain deferred tax assets.

Other, Net

This category shows volatility, starting negative at -0.9% in 2011 and 2012, turning positive in 2013 and 2014, and then negative again at -0.3% in 2015, indicating miscellaneous factors impacting tax rates that vary year to year.

Effective Income Tax Rate

The effective income tax rate exhibits an increasing trend from 19.5% in 2011 up to a peak of 31.4% in 2013. Subsequently, it decreased slightly to 28.5% in 2014 and 27.3% in 2015. This overall rise and partial moderation suggest increasing tax expenses relative to income, potentially influenced by rising state taxes and diminished one-time benefits offsetting foreign operations’ tax advantages.

Operating Losses

Operating losses demonstrate a consistent downward trend over the five-year period, decreasing from 590 million US dollars at the end of 2011 to 239 million US dollars by the end of 2015. This suggests improving operational efficiency or profitability.

Tax Credit Carryforwards

Tax credit carryforwards were unreported until 2015, when they appeared at 162 million US dollars and increased significantly to 282 million US dollars by the year's end, indicating the accumulation of tax benefits that could offset future tax liabilities.

Employee Benefits

Employee benefits expenses fluctuated, starting at 259 million US dollars in 2011, declining to a low of 154 million US dollars in 2015 with some volatility in between, which may suggest changes in workforce costs or benefits schemes.

Share-Based Compensation

Share-based compensation showed a steady incremental increase, rising from 106 million US dollars in 2011 to 126 million US dollars in 2015, indicating growing equity-based employee incentives over time.

Self-Insured Casualty Claims

Self-insured casualty claims declined gradually from 47 million US dollars in 2011 to 36 million US dollars in 2015, suggesting improved risk management or reduced claim incidences.

Lease-Related Liabilities

Lease-related liabilities show a moderate decline, from 137 million US dollars in 2011 to 112 million US dollars in 2015, possibly reflecting lease restructurings or payments reducing outstanding obligations.

Various Liabilities

Various liabilities displayed minor fluctuations without a clear trend, varying between 72 million and 88 million US dollars, with a slight uptick toward the end of the period.

Property, Plant and Equipment (Assets)

Property, plant and equipment assets recorded in monetary terms appeared only from 2012, peaking at 42 million US dollars in 2013 and declining to 33 million US dollars by 2015, indicating possible asset disposals or depreciation.

Deferred Income and Other

Deferred income and other liabilities increased substantially, notably rising from 49 million US dollars in 2011 to a peak of 102 million US dollars in 2014 before declining to 86 million US dollars in 2015, reflecting timing differences in revenue and expenses recognition.

Gross Deferred Tax Assets

Gross deferred tax assets declined overall from 1260 million US dollars in 2011 to 1150 million US dollars in 2015, with a notable dip in 2013, indicating potential changes in expected future tax benefits.

Deferred Tax Asset Valuation Allowances

Valuation allowances against deferred tax assets dropped significantly from -368 million US dollars in 2011 to -250 million US dollars in 2015, with the lowest allowance recorded in 2013 at -203 million US dollars, suggesting improved realization prospects of deferred tax assets.

Net Deferred Tax Assets

Net deferred tax assets showed a declining trend from 892 million US dollars in 2011 to 900 million US dollars in 2015 with a trough at 763 million US dollars in 2013 and a recovery in 2014, reflecting changes in tax asset realizability and valuation allowances.

Intangible Assets, Including Goodwill (Net)

Intangible assets, including goodwill, remained negative throughout, starting at -147 million US dollars in 2011 and improving slightly to -130 million US dollars in 2015, indicating amortization or impairment of intangible assets.

Property, Plant and Equipment (Net)

Net property, plant and equipment values were consistently negative, decreasing from -92 million US dollars in 2011 to -56 million US dollars in 2015, indicating ongoing depreciation or asset write-downs.

Other (Net)

Other net items fluctuated widely, with the most negative value recorded in 2014 at -104 million US dollars and improving to -70 million US dollars by 2015, suggesting variable non-categorized adjustments or liabilities.

Gross Deferred Tax Liabilities

Gross deferred tax liabilities decreased steadily from -292 million US dollars in 2011 to -256 million US dollars in 2015, indicating a reduction in future expected tax obligations.

Net Deferred Tax Assets (Liabilities)

Net deferred tax assets (liabilities) exhibited a fluctuating pattern, starting at 600 million US dollars in 2011, declining sharply to 382 million US dollars in 2013, and recovering to 644 million US dollars in 2015, reflecting volatility in deferred tax positions during the period.

Deferred income tax assets, current

There was a relatively stable level around 110 to 123 million USD between 2011 and 2013, followed by a noticeable decline to 93 million USD in 2014. Data for 2015 is not available, preventing trend analysis beyond 2014.

Deferred income tax assets, long-term

A declining trend was observed from 549 million USD in 2011 to 399 million USD in 2013. However, a significant recovery occurred in subsequent years with an increase to 571 million USD in 2014 and further growth to 676 million USD in 2015, indicating a possible strategic shift or changes in tax positions.

Deferred income tax liabilities, current

These liabilities decreased sharply from 16 million USD in 2011 to 5 million USD in 2012, further diminishing to 2 million USD in 2013 and remaining stable at that level through 2014. Data for 2015 is missing.

Deferred income tax liabilities, long-term

The long-term liabilities showed volatility, increasing from 45 million USD in 2011 to a peak of 147 million USD in 2012, then slightly decreased to 138 million USD in 2013. A marked reduction followed in 2014 and 2015, with amounts of 40 million USD and 32 million USD, respectively, suggesting a significant reversal or settlement of such liabilities during this period.

Current assets

Reported current assets show a downward trend from 2321 million USD in 2011 to a low of 1646 million USD in 2014, followed by a slight increase to 1688 million USD in 2015. Adjusted current assets exhibit a similar pattern, declining from 2209 million USD in 2011 to 1553 million USD in 2014, and then recovering to 1688 million USD by 2015.

Total assets

Both reported and adjusted total assets decrease consistently over the periods analyzed. Reported total assets fall from 8834 million USD in 2011 to 8075 million USD in 2015. Adjusted total assets follow this decline from 8173 million USD in 2011 to 7399 million USD in 2015, indicating a steady reduction in asset base.

Current liabilities

Current liabilities display an irregular pattern with a general upward movement. Reported current liabilities decline from 2450 million USD in 2011 to 2188 million USD in 2012, then fluctuate and peak at 3088 million USD in 2015. Adjusted current liabilities closely mirror this trend, increasing noticeably in the final year.

Total liabilities

Total liabilities decline from 6918 million USD in 2011 to 6427 million USD in 2013 but trend upward thereafter, reaching 7100 million USD by 2015 on a reported basis. Adjusted total liabilities show similar movements, with a decrease initially and subsequent increase to 7068 million USD by the end of the observed period.

Shareholders’ equity

Reported shareholders’ equity experiences considerable variation, rising from 1823 million USD in 2011 to a peak of 2166 million USD in 2013, followed by steep declines to 911 million USD in 2015. Adjusted shareholders’ equity demonstrates a parallel but more pronounced decrease, falling from 1223 million USD in 2011 to 267 million USD in 2015, indicating a significant erosion of net equity over time.

Net income

Reported net income exhibits volatility with an initial increase from 1319 million USD in 2011 to 1597 million USD in 2012, a subsequent drop to 1051 million USD in 2014, and a recovery to 1293 million USD in 2015. Adjusted net income follows a similar pattern but with lower figures in later years, declining substantially to 879 million USD in 2014 before partially rebounding to 1204 million USD in 2015.

Overall insights

The data reveal a consistent decline in both current and total assets, alongside increasing liabilities, particularly current liabilities in the final year. Shareholders’ equity has markedly decreased, especially when adjusted for income tax considerations. Net income figures fluctuate but generally show a decline mid-period with signs of recovery at the end. The adjustment for deferred and reported income tax generally leads to lower asset and equity values and variability in net income, highlighting the impact of income tax adjustments on the financial position and performance over time.

The analysis of the financial ratios over the five-year period reveals notable trends and fluctuations across liquidity, profitability, asset utilization, leverage, and return metrics when adjusted for annual reported and deferred income tax impacts.

Liquidity Ratios (Current Ratio)

The reported current ratio consistently declined from 0.95 in 2011 to 0.55 in 2015, indicating a decreasing short-term liquidity position. The adjusted current ratio mirrors this downtrend closely, starting at 0.91 in 2011 and falling to 0.55 by 2015. This downward movement suggests a progressively tighter liquidity situation irrespective of adjustments.

Profitability Ratios (Net Profit Margin)

The reported net profit margin shows some volatility. It increased from 10.45% in 2011 to a peak of 11.71% in 2012, followed by a decline to 7.91% in 2014, and a recovery to 9.87% in 2015. The adjusted margin follows a similar pattern, though adjusted values are generally lower, ranging from 9.36% to 11.92% initially, then dipping to 6.62% in 2014 before rebounding to 9.19%. This pattern indicates fluctuations in profitability with some adverse impacts accounted for in the adjustments.

Asset Utilization (Total Asset Turnover)

Both reported and adjusted total asset turnover ratios exhibit a consistent upward trend. Reported turnover increased from 1.43 in 2011 to 1.62 in 2015, while adjusted turnover rose from 1.54 to 1.77 over the same period. The consistent increase suggests improving efficiency in asset usage for generating sales or revenues, with adjusted figures persistently higher, indicating adjustments provide a more favorable view of operational efficiency.

Financial Leverage

Reported financial leverage ratios show a somewhat stable trend initially, decreasing from 4.85 in 2011 to 4.01 in 2013, then a substantial increase to 8.86 in 2015. Adjusted leverage shows more pronounced fluctuations, starting higher at 6.68 in 2011, dipping, then sharply climbing to 27.71 by 2015. This indicates that adjustments substantially increase the perceived leverage, particularly by 2015, highlighting a significant amplification of financial risk under the adjusted perspective.

Return on Equity (ROE)

The reported ROE illustrates marked variability, with a dip from 72.35% in 2011 to 50.37% in 2013, then rising sharply to reach 141.93% by 2015. Adjusted ROE follows a similar but more pronounced pattern, starting at an elevated 96.65%, lowering to 59.81%, and then surging to an exceptionally high 450.94% in 2015. The amplified adjusted ROE reflects the impact of deferred tax adjustments and increased leverage, indicating a potentially exaggerated return figure under adjusted conditions.

Return on Assets (ROA)

The reported ROA shows moderate fluctuations, initially increasing from 14.93% in 2011 to 17.72% in 2012, then decreasing again, and modestly recovering to 16.01% in 2015. Adjusted ROA peaks higher at 19.3% in 2012, declines more gradually, and reaches a similar level of 16.27% in 2015. This trend indicates relatively stable asset profitability over the period, with adjustments having a moderate influence.

Overall, the data reflects declining liquidity, fluctuating profitability, increased asset efficiency, and rising financial leverage, especially under adjusted measures. The adjusted figures notably heighten perceptions of leverage and return on equity, suggesting a sensitivity of these ratios to tax-related adjustments that materially influence the financial risk and return profile. These insights underline the importance of considering both reported and adjusted metrics for a comprehensive evaluation of financial health and performance trends.

Current Assets

The reported current assets demonstrate a declining trend from 2011 to 2014, decreasing from 2,321 million US dollars to 1,646 million US dollars, before showing a slight increase to 1,688 million US dollars in 2015. The adjusted current assets follow a similar pattern, declining steadily from 2,209 million US dollars in 2011 to 1,553 million US dollars in 2014, then increasing to 1,688 million US dollars in 2015. This indicates a consistent reduction in available liquid assets over most of the period, followed by a modest recovery in the final year.

Current Liabilities

The reported current liabilities present a fluctuating but generally upward trend. Starting at 2,450 million US dollars in 2011, they slightly decline to 2,188 million US dollars in 2012, then increase gradually to 2,411 million US dollars in 2014 before a significant jump to 3,088 million US dollars in 2015. Adjusted current liabilities closely mirror the reported data, reinforcing the accuracy of this observation. The sharp rise in current liabilities in the final year suggests increased short-term obligations or payables.

Current Ratios

Both reported and adjusted current ratios decline continuously over the five-year period, reflecting a deteriorating short-term liquidity position. The reported current ratio drops from 0.95 in 2011 to 0.55 in 2015, while the adjusted current ratio declines from 0.91 to 0.55 in the same period. The decreasing ratios, which all remain below 1.0, indicate that the company's current liabilities consistently exceed its current assets, potentially signaling liquidity stress or challenges in meeting short-term obligations.

Overall Interpretation

The data reveals a trend of diminishing current assets accompanied by rising current liabilities, culminating in a substantial drop in the current ratio. Although there is a slight recovery in current assets in 2015, the significant increase in liabilities more than offsets this improvement. The consistent adjustments between reported and adjusted figures suggest the adjustments have minimal impact on the overall liquidity trend. The declining current ratios across the years warrant attention as they may imply increased liquidity risk and a need for enhanced working capital management.

Reported Net Income

The reported net income exhibits variability over the five-year period. It increased from 1319 million US dollars in 2011 to a peak of 1597 million in 2012, followed by a significant decline to 1091 million in 2013. The amount remained relatively stable in 2014 at 1051 million before rising again to 1293 million in 2015. This pattern indicates volatility with a recovery occurring towards the end of the period.

Adjusted Net Income

The adjusted net income generally follows a similar trend to the reported figures but shows more pronounced fluctuations. It increased sharply from 1182 million in 2011 to 1625 million in 2012, then declined to 1067 million in 2013. A further decline to 879 million in 2014 is observed, which is more substantial than in the reported net income, before recovering to 1204 million in 2015. The adjusted figures suggest additional factors affecting income in 2014, causing a deeper dip relative to reported income.

Reported Net Profit Margin

The reported net profit margin reflects the profitability trends observed in net income. It increased from 10.45% in 2011 to 11.71% in 2012, indicating improved efficiency or profitability. It then declined sharply to 8.34% in 2013, with a further slight decrease to 7.91% in 2014. By 2015, the margin improved to 9.87%, demonstrating a partial recovery in profit margins alongside income recovery.

Adjusted Net Profit Margin

The adjusted net profit margin shows a pattern consistent with the adjusted net income. It rose from 9.36% in 2011 to 11.92% in 2012, indicating strong profitability. A decline to 8.15% occurred in 2013, with a further drop to a low of 6.62% in 2014. This margin then improved to 9.19% in 2015. The sharper decline in adjusted margins during 2014 suggests the impact of adjustments related to income tax or other items notably affected profitability during that year.

Overall Analysis

The financial data reveals a general pattern of initial growth followed by a downturn around 2013 and 2014, with signs of recovery in 2015. Both reported and adjusted income figures show substantial variation, with adjusted data indicating deeper declines in 2014. Net profit margins correspond closely to net income movements, with adjusted margins being lower and more volatile than reported margins, likely reflecting the influence of reported and deferred income tax adjustments. The trends suggest the company experienced challenges affecting profitability and income during the middle years, but managed to regain some financial strength by the end of the period.

The analysis of the reported and deferred income tax adjusted financial data over the five-year period reveals several notable trends and insights regarding asset values and efficiency ratios.

Total Assets

Reported total assets show a generally declining trend from US$8,834 million in 2011 to US$8,075 million in 2015, reflecting a reduction of approximately 8.6% over the period. Adjusted total assets, which account for deferred income tax adjustments, similarly decrease from US$8,173 million in 2011 to US$7,399 million in 2015, representing a decline of around 9.5%. Both reported and adjusted figures illustrate consistent asset base contraction year over year, with adjusted assets consistently lower than reported assets, suggesting the impact of deferred tax adjustments on asset valuation.

Total Asset Turnover

The reported total asset turnover ratio, a measure of sales generated per dollar of assets, increases steadily from 1.43 in 2011 to 1.62 in 2015, indicating improved efficiency in utilizing assets to generate revenue. Adjusted total asset turnover follows the same upward trend but at slightly higher levels, rising from 1.54 to 1.77 during the same period. This consistent increase in turnover ratios, both reported and adjusted, suggests enhanced operational performance or better asset utilization efficiency despite the declining asset base.

Overall Insights

The declining trend in asset values coupled with rising asset turnover ratios implies that the company is achieving better sales performance or revenue efficiency per unit of asset over time. The adjustment for deferred income taxes appears to provide a more conservative asset valuation but does not alter the positive trend in asset utilization efficiency. These patterns may indicate strategic asset management, cost control measures, or operational improvements leading to more effective use of available resources.

The analysis of the financial data over the five-year period reveals several notable trends and shifts in the company's financial position when comparing reported figures and those adjusted for annual reported and deferred income tax.

Total Assets

There is a consistent downward trend in both reported and adjusted total assets from 2011 through 2015. Reported total assets declined from $8,834 million in 2011 to $8,075 million in 2015, marking an overall reduction of approximately 9%. Adjusted total assets similarly decreased from $8,173 million to $7,399 million, a decrease of nearly 10% over the same period. The adjusted figures consistently remain below the reported totals, reflecting the impact of income tax adjustments on asset valuation.

Shareholders’ Equity

Shareholders’ equity, both reported and adjusted, declined markedly during the period. Reported equity decreased from $1,823 million in 2011 to $911 million in 2015, effectively halving over five years. Adjusted equity exhibited an even steeper decline from $1,223 million to $267 million, representing a reduction of approximately 78%. The gap between reported and adjusted equity widened over time, indicating that tax-related adjustments had an increasingly significant negative impact on the company's net worth.

Financial Leverage

Financial leverage ratios, which reflect the relationship between total assets and equity, show divergent patterns for reported and adjusted data but both point to increased leverage in later years. Reported financial leverage decreased from 4.85 in 2011 to a low of 4.01 in 2013 but then rose sharply to 8.86 by 2015. Adjusted financial leverage demonstrates a similar pattern with more pronounced volatility, declining from 6.68 in 2011 to 4.58 in 2013, before escalating dramatically to 27.71 in 2015. The significant increase in leverage ratios, especially in adjusted terms, implies a growing reliance on debt or liabilities relative to equity as the adjusted equity base shrinks substantially.

Overall, the data suggest a weakening equity base relative to assets coupled with an increase in financial leverage, particularly when income tax adjustments are considered. The substantial decrease in adjusted shareholders’ equity combined with the sharp increase in adjusted financial leverage by 2015 could be interpreted as an indicator of heightened financial risk or changes in accounting for deferred taxes impacting the balance sheet structure.

The data reveals several notable trends in the reported and adjusted financial metrics over the five-year period ending in 2015. Both reported net income and adjusted net income exhibit fluctuations, with reported net income peaking in 2012 at $1,597 million before declining in subsequent years and then rising again in 2015. Adjusted net income follows a similar pattern but shows a more pronounced decline in 2014, reaching a low of $879 million before recovering in 2015.

Shareholders’ equity, both reported and adjusted, demonstrates a general downward trend across the period. Reported shareholders’ equity decreases substantially from $1,823 million in 2011 to $911 million in 2015, while adjusted shareholders’ equity falls sharply as well, from $1,223 million to $267 million over the same timeframe. The decline in equity indicates a reduction in the net asset base of the company, with the adjusted figures showing a more severe contraction.

Return on equity (ROE) measures show high volatility and exceptionally elevated values, especially in adjusted ROE. Reported ROE remains relatively high, ranging from 50.37% to 141.93%, with a notable peak in 2015. Adjusted ROE exhibits even greater fluctuations, starting at 96.65% in 2011 and escalating dramatically to 450.94% in 2015. These elevated ROE values, particularly the adjusted ones, suggest that the company’s net income relative to shareholders’ equity is very high, likely a consequence of the sharp decline in adjusted equity.

Net Income Trends

Reported and adjusted net incomes fluctuate over the five years, with both peaking in 2012 and then decreasing before an uptick in 2015. The adjusted net income shows a deeper decline in 2014 compared to the reported figure.

Shareholders’ Equity Trends

Both reported and adjusted shareholders’ equity decline significantly, with the adjusted equity reflecting a more pronounced fall, indicating a diminished equity base.

Return on Equity Patterns

ROE values are unusually high and volatile. Adjusted ROE increases markedly over the period, culminating in an extremely high value in 2015, implying strong earnings relative to a shrinking equity base.

Overall, the data suggests that while the company’s net income has fluctuated, the equity base has contracted substantially, especially when adjusted for reported and deferred income taxes. The high and rising ROE figures driven by the diminished equity highlight potential leverage or capital structure considerations that may warrant further investigation to understand sustainability and risk.

Net Income Trends

The reported net income of the company shows variability over the five-year period. It increased from 1319 million USD in 2011 to a peak of 1597 million USD in 2012, followed by a significant decline to 1091 million USD in 2013 and a further slight decrease in 2014 to 1051 million USD. The figure then rebounded to 1293 million USD in 2015. The adjusted net income follows a similar pattern but generally registers slightly lower than the reported net income except in 2012 where it is higher at 1625 million USD. After peaking in 2012, adjusted net income fell more sharply to 879 million USD in 2014 before recovering to 1204 million USD in 2015.

Total Assets Development

Both reported and adjusted total assets display a gradual downward trend throughout the period. Reported total assets decreased from 8834 million USD in 2011 to 8075 million USD in 2015, while adjusted total assets declined from 8173 million USD to 7399 million USD over the same period. The consistent reduction in total assets may suggest a strategic divestment or asset optimization program.

Return on Assets (ROA) Analysis

The reported ROA indicates fluctuations in efficiency with an increase from 14.93% in 2011 to a high of 17.72% in 2012, followed by a decline to around 12.5% in 2013 and 2014, and then a substantial rise again to 16.01% in 2015. The adjusted ROA shows a similar pattern but with more pronounced changes; reaching a peak of 19.3% in 2012, declining steadily to 11.44% in 2014, and rebounding to 16.27% in 2015. These patterns imply that asset utilization efficiency was highest in 2012, declined in the subsequent years, but improved again by 2015.

General Observations and Insights

The data suggests that 2012 was a year of peak performance in terms of both income and asset efficiency. However, the subsequent years showed a downturn in profitability and efficiency, reaching their lowest in 2014. The recovery observed in 2015 might reflect successful corrective measures or favorable market conditions. The consistent decrease in total assets alongside the fluctuating income and ROA points to possible asset restructuring or optimization efforts during this period. Overall, while the company faced challenges after 2012, the improvement in 2015 indicates a positive turnaround in financial performance.