Revenue Analysis
Total and Operating Revenue: NSA reported a consistent increase in Total and Operating Revenue over the reviewed periods, rising from $207.993 billion in Q1 2023 to $215.511 billion in Q2 2023, $219.147 billion in Q3 2023, then slightly decreasing to $215.412 billion in Q4 2023, and rising again to $196.148 billion in Q1 2024.
Gross Profit Margin: Gross profit followed a proportional trend with revenue, moving from $151.510 billion in Q1 2023 to $158.417 billion in Q2 2023, $160.566 billion in Q3 2023, $158.584 billion in Q4 2023, and finally $141.454 billion in Q1 2024. This suggests NSA was somewhat effective at managing its cost of sales in relation to revenue.
Cost Management
Cost of Revenue: NSA’s cost of revenue increased from $56.483 billion in Q1 2023 to $57.094 billion in Q2 2023, $58.581 billion in Q3 2023, $56.828 billion in Q4 2023, and then $54.694 billion in Q1 2024, indicating a fluctuation but general increase in cost relative to its operational scale over the period.
Operating Expense: Operating expenses moved variably, evidencing an alteration from $71.452 billion in Q1 2023 to $74.329 billion in Q2 2023, $75.080 billion in Q3 2023, and $71.521 billion in Q4 2023, with a minor decrease to $66.497 billion in Q1 2024.
Total Expenses: NSA’s total expenses increased progressively from $127.935 billion in Q1 2023 to $131.423 billion in Q2 2023, $133.661 billion in Q3 2023, and $128.349 billion in Q4 2023, showing a slight reduction to $121.191 billion in Q1 2024.
Profitability Analysis
EBITDA: EBITDA showed significant growth, moving up from $134.994 billion in Q1 2023 to $142.611 billion in Q2 2023, and peaking at $206.220 billion in Q4 2023, before slightly reducing to $181.422 billion in Q1 2024.
Operating Income: Operating income demonstrated growth and then a slight decline, with values of $79.536 billion in Q1 2023, rising to a peak of $87.063 billion in Q4 2023, then declining to $74.957 billion in Q1 2024.
Pretax Income: Pretax income was on an uptrend, increasing from $41.588 billion in Q1 2023 to $45.913 billion in Q2 2023, $43.986 billion in Q3 2023, $106.791 billion in Q4 2023, and $95.974 billion in Q1 2024.
Net Income: There was an increase in net income from $28.959 billion in Q1 2023 to $29.448 billion in Q2 2023, $29.237 billion in Q3 2023, $69.027 billion in Q4 2023, and a strong jump to $59.027 billion in Q1 2024.
Cash Flow Indicators
Reconciled Depreciation: Depreciation increased from $55.458 billion in Q1 2023 to a peak of $56.705 billion in Q2 2023 before decreasing to $47.331 billion in Q1 2024. This decreasing trend might reflect asset optimization or adjustments in asset estimates.
Interest Expense: Interest expenses remained relatively steady and significant throughout the period, highlighting consistent financing costs from $37.948 billion in Q1 2023 to $38.117 billion in Q1 2024.
Taxation
Tax Rate: Varied considerably from a low of 0.0092 in Q1 2024 to a high of 0.0288 in Q1 2023.
Tax Provision: The tax provision was erratic, showing fluctuations from $1.196 billion in Q1 2023 down to a tax rebate in Q4 2023, with minor recovery in successive quarters.
Tax Effect of Unusual Items: The tax effects of unusual items strongly varied, from negative values in earlier periods to a positive $560,048 in Q1 2024, indicating occasional significant unusual expense or income patterns.
Shareholder Metrics
Diluted and Basic EPS: The diluted EPS ranged from $0.24 to $0.65, and the basic EPS followed a similar trend. These measures show profitability per share, reflecting the company’s ability to generate earnings for its shareholders.
Average Shares: There was noticeable fluctuation in the number of average diluted and basic shares, suggesting share buybacks or issuance over the period.
Net Income Available to Common Stockholders: Net income available to common stockholders showed significant variation, from $24.316 billion in Q2 2023 to $89.122 billion in Q1 2024, indicating profitable operations and financial strategies impacting shareholders positively.
Conclusion
NSA has demonstrated a resilient and profitable operational capability across reviewed periods, with consistent revenue growth and efficient cost management. However, fluctuating tax implications and inconsistency in net income suggest areas for strategic improvement.
Recommendations: Focus on sustaining revenue growth and cost management, enhance tax handling and strategize for more consistent net income performance.