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Normalizing Income Statements Assessment (Template)

The income statement for fiscal years 2021 to 2023 shows an increase in net sales from $17,108 million to $20,498 million, with corresponding growth in gross profit. Operating income also rose significantly, reaching $3,888 million in 2023, while net income increased to $3,165 million. Adjusted EBITDA for the same period grew from $2,955 million to $4,281 million, indicating strong financial performance.

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96 views3 pages

Normalizing Income Statements Assessment (Template)

The income statement for fiscal years 2021 to 2023 shows an increase in net sales from $17,108 million to $20,498 million, with corresponding growth in gross profit. Operating income also rose significantly, reaching $3,888 million in 2023, while net income increased to $3,165 million. Adjusted EBITDA for the same period grew from $2,955 million to $4,281 million, indicating strong financial performance.

Uploaded by

chambersnicole2011
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Income Statement (Reported)

All figures in USD millions unless stated Fiscal Fiscal Fiscal


2021A 2022A 2023A

Net Sales 17,108.0 18,449.0 20,498.0


Cost of Sales (6,140.0) (6,871.0) (7,440.0)
Gross Profit 10,968.0 11,578.0 13,058.0

Research & Development (1,235.0) (1,454.0) (1,388.0)


Selling, General & Administrative (6,427.0) (6,455.0) (7,129.0)
Recall Charges (103.0) 15.0 (18.0)
Amortization of Intangible Assets (619.0) (627.0) (635.0)
Goodwill Impairment – (216.0) –
Operating Income (EBIT) 2,584.0 2,841.0 3,888.0

Other Non-Operating (Expense) / Income (303.0) (158.0) (215.0)


Earnings Before Tax (EBT) 2,281.0 2,683.0 3,673.0

Income Tax (Expense) / Benefit (287.0) (325.0) (508.0)

Net Income 1,994.0 2,358.0 3,165.0

Normalizing Income Statements Page 1 of 3


Adjustments

Adjustments to Net Income 2021A 2022A 2023A

Net Income (Reported)


Inventory Stepped-up to Fair Value
Other Acquisition and Integration-Related
Amortization of Purchased Intangible Assets
Structural Optimization and Other
Goodwill Impairment
Medical Device Regulations
Recall-related Matters
Regulatory and Legal
Miscellaneous Tax Matters
Adjusted Net Income

Adjustments to Operating Income 2021A 2022A 2023A

Operating Income (Reported) 2,584.0 2,841.0 3,888.0


Inventory Stepped-up to Fair Value
Other Acquisition and Integration-Related
Amortization of Purchased Intangible Assets
Structural Optimization and Other
Goodwill Impairment
Medical Device Regulations
Recall-related Matters
Regulatory and Legal
Adjusted Operating Income 2,584.0 2,841.0 3,888.0

Depreciation 371.0 371.0 393.0


Adjusted EBITDA 2,955.0 3,212.0 4,281.0

Normalizing Income Statements Page 2 of 3


Analysis

Margins 2021A 2022A 2023A

Net Sales
Net Income (Reported)
Net Profit Margin (GAAP)

Net Sales
Adjusted Net Income (Non-GAAP)
Adjusted Net Profit Margin (Non-GAAP)

Leverage and Coverage Ratios 2021A 2022A 2023A

Current Debt 1,191.0 2,094.0


Long-Term Debt 11,857.0 10,901.0
Cash (1,844.0) (2,971.0)
Net Debt
Adjusted EBITDA
Leverage Ratio

Adjusted EBITDA
Interest Expense 337.0 337.0 356.0
Coverage Ratio

Normalizing Income Statements Page 3 of 3

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