Stock Analysis on Net
Stock Analysis on Net

Yahoo! Inc. (NASDAQ:YHOO)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 9, 2017.

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

Yahoo! Inc., operating profit margin, long-term trends, calculation

Microsoft Excel
Operating profit margin = 100 × Income (loss) from operations1 ÷ Revenue1
Dec 31, 2016 = 100 × ÷
Dec 31, 2015 = 100 × ÷
Dec 31, 2014 = 100 × ÷
Dec 31, 2013 = 100 × ÷
Dec 31, 2012 = 100 × ÷
Dec 31, 2011 = 100 × ÷
Dec 31, 2010 = 100 × ÷
Dec 31, 2009 = 100 × ÷
Dec 31, 2008 = 100 × ÷
Dec 31, 2007 = 100 × ÷
Dec 31, 2006 = 100 × ÷
Dec 31, 2005 = 100 × ÷

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in thousands

Revenue trends
Revenue showed an overall increasing trend from 2005 through 2008, rising from approximately 5.26 billion US dollars to 7.21 billion US dollars. However, starting in 2009, revenue began to decline, falling to around 6.32 billion US dollars in 2010 and decreasing sharply to just under 5 billion US dollars in 2011 and 2012. The revenue remained relatively stable around 4.6 to 5.2 billion US dollars from 2013 to 2016, showing no significant recovery to the earlier peak levels.
Income (loss) from operations trends
Operating income experienced a marked decline over the period. It started strong in 2005 at over 1.1 billion US dollars and decreased consistently through 2007 to 2008, reaching a low point just above 12 million US dollars. There was a partial recovery in 2009 and 2010, with operating income increasing to around 772 million US dollars in 2010. Post-2010, operating income fluctuated but remained positive until 2014, when it sharply decreased into a significant loss, with the most severe loss recorded in 2015 at nearly -4.75 billion US dollars. In 2016, the loss narrowed somewhat yet remained negative at approximately -645 million US dollars.
Operating profit margin analysis
The operating profit margin closely mirrored the trends in operating income and revenue. Initially strong at 21.07% in 2005, it gradually declined to 0.18% in 2008, reflecting diminishing operational profitability despite growing revenue. The margin rebounded to double digits between 2009 and 2011, peaking at 16.06% in 2011, which indicates improved cost management or operational efficiency during those years. From 2012 onward, the margin decreased again, remaining low but positive through 2014. In 2015, the margin dramatically dropped to a negative 95.58%, highlighting a substantial operational loss. It showed some improvement in 2016 but remained negative at -12.48%, signaling ongoing struggles to return to profitability.
Summary of financial performance
The data indicate that the company experienced strong revenue growth followed by a period of decline and stabilization at lower revenue levels. Operating income and profit margins followed a similar pattern but exhibited greater volatility and more severe downturns. The significant operational losses in 2015 and continued negative profitability in 2016 suggest considerable challenges, possibly due to increased costs, reduced revenue, or other operational difficulties that materially affected financial performance. The earlier years' profitability contrasts sharply with the steep losses observed toward the end of the period, indicating a critical need for strategic reassessment.

Comparison to Competitors

Yahoo! Inc., operating profit margin, long-term trends, comparison to competitors

Microsoft Excel
Yahoo! Inc. Accenture PLC Adobe Inc. Cadence Design Systems Inc. CrowdStrike Holdings Inc. Fair Isaac Corp. Intuit Inc. Microsoft Corp. Oracle Corp. Palantir Technologies Inc. Palo Alto Networks Inc. Salesforce Inc. ServiceNow Inc. Synopsys Inc. Workday Inc.
Dec 31, 2016
Dec 31, 2015
Dec 31, 2014
Dec 31, 2013
Dec 31, 2012
Dec 31, 2011
Dec 31, 2010
Dec 31, 2009
Dec 31, 2008
Dec 31, 2007
Dec 31, 2006
Dec 31, 2005

Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).