Revenue Analysis:
Total and Operating Revenue: Over the years, NEM’s operating revenue showed some fluctuations, with a high in 2024 at $4.023 billion, and a low in late 2023 at $3.957 billion. This indicates a relatively stable revenue stream, though subject to mild shifts.
Gross Profit margins: Gross profit has varied, reaching as high as $1.263 billion in 2024. In December 2023, it dropped to $973 million, suggesting varying cost of sales or selling prices during these periods.
Cost Management:
Cost of Revenue: This expense has been significant, showing an upward trend from $1.851 billion in September 2023 to $2.76 billion by March 2024.
Operating Expense: Operating expenses have also shown variability, with a notable reduction to $305 million in March 2024 from $1.46 billion in December 2023.
Total Expenses: Closely tracking the operating expense, total expenses followed a similar trend, peaking in December 2023 at $4.444 billion.
Profitability Analysis:
EBITDA: NEM observed a recovery from negative values in 2023 to a robust $1.65 billion by March 2024.
Operating Income: From a significant negative in December 2023 ($487 million), there was a rebound to $958 million in 2024, indicating recovery or cost adjustments.
Pretax Income: Correspondingly, pretax income recovered from a deep negative position at -$3.1 billion in December 2023 to $428 million by March 2024.
Net Income: Net income saw a turnaround from -$3.158 billion in 2023 to $170 million by 2024, showing stark improvements in profit management.
Cash Flow Indicators:
Reconciled Depreciation: Depreciation stands steady as a non-cash expense affecting cash flows, around $654 million in 2024 from $486 million earlier in June 2023.
Interest Expense: Interest expense appeared to be managed well, shown by a slight decrease in 2024.
Taxation:
Tax Rate: NEM’s operating tax rates show variations, generally centered around the regulatory fiscal adjustments.
Tax Provision: Following profitability cues, tax provisions have been adjusted, marked at $260 million in 2024 down from $77 million in late 2023 during a high-loss period.
Tax Effect of Unusual Items: Significant unusual items were reported especially in late 2023, affecting tax effects.
Shareholder Metrics:
Diluted and Basic EPS: EPS was volatile, from a negative $3.21 in late 2023, improving to $0.15 by 2024, tracking with net income improvements.
Average Shares: Relatively stable around 795 to 980 million, indicating no significant dilution or buyback activities over the period.
Net Income Available to Common Stockholders: Mirrored the net income trends, implying stable payout or retention policies.
Conclusion:
Overall, NEM has shown resilience in recovering from a significantly challenging financial position in late 2023, demonstrating strong rebounds in profitability by early 2024. The management seems effective in cost control and operational efficiency improvements. While maintaining vigilance on operational and non-operational adjustments, stakeholders should remain optimistic but cautious about future unpredictabilities.
Appendices:
Please refer to the presented financial tables for detailed yearly and quarterly financial metrics, used to support the analysis provided above.