2nd time posting this question:
Use the Income Statement for ABC Company to prepare a HORIZONTAL analysis of the company's income statement.
Briefly summarize your observations about changes and financial trends to:
- Net sales,
- Operating income, and
- Net earnings attributable to the company.
ABC Company Comparative Income Statement For 4-years ending 12/31/2020 Income Statement For the Fiscal Period Ending Currency Restated 12 months Dec-31-2017 USD Reclassified 12 months 12 months Dec-31-2018 Dec-31-2019 USD USD in millions, except per share amounts) 12 months Dec-31-2020 USD Revenue 14.748,0 15,374.0 15,146.0 13,834.0 Other Revenue Total Revenue 14,748.0 15,374.0 15,146.0 13,834.0 Cost Of Goods Sold 8,209.0 9.001.0 8,619.0 7,743.0 Gross Profit 6,539.0 6,373.0 6,527.0 6,091.0 Selling General & Admin Exp. 3,554.0 3,573.0 3,638.0 3,423.0 R & D Exp. 451.0 441.0 432.0 379.0 Depreciation & Amort. 331.0 354.0 375.0 371.0 Amort. of Goodwill and Intangibles 129.0 143.0 136.0 138.0 Other Operating Expense/Income) 88.0 177.0 153.0 134.0 Other Operating Exp., Total 4,553.0 4,688.0 4,734.0 4,445.0 Operating Income 1,986.0 1,685.0 1.793.0 1,646.0 Interest Expense (105.0) (118.0) (132.0) (138.0) Interest and Invest. Income 20.0 23.0 32.0 23.0 Net Interest Exp. (85.0) (95.0) (100.0) (115.0) Income/(Loss) from Affiliates 12.0 16.0 11.0 8.0 Currency Exchange Gains (Loss) 14.0 55.0 55.0 30.0 Other Non-Operating Inc. (Exp.) 67.0 65.0 71.0 55.0 EBT Excl. Unusual Items 1,994.0 1,726.0 1,830.0 1,624.0 Restructuring Charges (66.0) (176.0) (1740) Impairment of Goodwill Gain (Loss) On Sale Of Assets 53.0 33.0 7.0 5.0 Asset Writedown (93.0) Legal Settlements 18.0 Other Unusual Items (60.0) EBT Incl. Unusual Items . 2,005.0 1,693.0 1,661.0 1,362.0 Income Tax Expense 615.0 353.0 392.0 291.0 Earnings from Cont. Ops. 1.390.0 1,340.0 1,269.0 1,071.0 Earnings of Discontinued Ops. 225.0 18.0 3.0 Extraord. Item & Account Change Net Income to Company 1,615.0 1,358.0 1,269.0 1,074.0 Minority Int. in Earnings (21.0) (17.0) (26.0) (15.0) Net Income 1,594.0 1.341.0 1,243.0 1,059.0 Per Share Items Basic EPS Weighted Avg. Basic Shares Out. $6.22 $5.5 $5.25 $4.47 256.1 243.9 236.9 236.8 $6.18 $5.47 $5.22 $4.45 Diluted EPS Weighted Avg. Diluted Shares Out. 257.8 245.4 238.2 237.9 Dividends per Share Payout Ratio % $1.7 27.2% $1.86 33.8% $1.98 37.7% $2.1 46.8%
