Revenue Analysis
Total and Operating Revenue: Over the three-year period, ALL’s operating revenue showed fluctuations with an overall downtrend from $15.259 billion in 2024 to $13.786 billion in 2023 (March). The operating revenue mirrors the total revenue, indicating that ALL’s primary income is from its central operations and not other investments or activities.
Gross Profit Margins: Unfortunately, the direct cost of revenue is not provided, making it challenging to calculate the exact gross profit margin. The overall trend in revenue decline suggests potential pressures on the gross profit.
Cost Management
Cost of Revenue: Specific costs directly tied to revenue are not explicitly outlined, focusing analysis more on operational costs and expenses.
Operating Expense: A significant part of operating expenses seemingly includes items like depreciation, salaries, and administrative expenses. Total operating expenses show massive fluctuations and an increasing trend, contributing to financial stress.
Total Expenses: Increased from approximately $14 billion in March 2023 to nearly $15 billion by 2024, suggesting tightened cost control might be required.
Profitability Analysis
EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is not directly provided but calculated indicators like EBIT and Net Income suggest significant variability. Specifically, EBIT swung dramatically from a massive loss of $1.65 billion (March 2023) to a profit of $1.561 billion by March 2024.
Operating Income: Operating income is not provided separately and is likely encompassed within EBIT figures.
Pretax Income: Pretax income fluctuated greatly from a loss of $1.65 billion in March 2023 to a positive $1.464 billion by March 2024.
Net Income: Net income has experienced highs and significant lows, from losses up to $1.352 billion to gains of $1.218 billion, indicating a volatile financial performance over the past years.
Cash Flow Indicators
Reconciled Depreciation: Ranging from $176 million to $186 million, indicating consistent capital expenditure and asset depreciation.
Interest Expense: Interest expense consistently appears around the $97 million to $107 million mark, signifying stable debt servicing costs.
Taxation
Tax Rate: The effective tax rate has varied, indicated by calculations for unusual items, impacting net income calculations.
Tax Provision: The tax provision has been significant, indicating ALL’s tax liabilities, which dramatically vary with its pre-tax incomes.
Tax Effect of Unusual Items: These range significantly, affecting the taxation narrative, from subtractive effects in millions to supportive reductions in tax burdens.
Shareholder Metrics
Diluted and Basic EPS: Earnings per Share (EPS) has seen wide-ranging fluctuations from as low as -$5.29 to a high of $4.46, indicating potential concerns for investors regarding earnings stability.
Average Shares: The number of shares has remained relatively stable, suggesting no significant dilution or consolidation during this period.
Net Income Available to Common Stockholders: This figure has also been highly variable, reflecting the overall profitability changes, from substantial losses to significant profits.
Conclusion
ALL has experienced significant financial volatility over the past three years, with substantial fluctuations in net income, revenue, and expenses. The company could benefit from strategies aimed at stabilizing its financial performance, enhancing cost efficiencies, and maintaining revenue streams to manage and forecast future financial health better.