Return on Equity (ROE)
since 2008
Calculation
Activision Blizzard Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 7.86% | = | 100 | × | 1,513) | ÷ | 19,243) |
| Dec 31, 2021 | 15.34% | = | 100 | × | 2,699) | ÷ | 17,599) |
| Dec 31, 2020 | 14.61% | = | 100 | × | 2,197) | ÷ | 15,037) |
| Dec 31, 2019 | 11.74% | = | 100 | × | 1,503) | ÷ | 12,805) |
| Dec 31, 2018 | 15.96% | = | 100 | × | 1,813) | ÷ | 11,357) |
| Dec 31, 2017 | 2.89% | = | 100 | × | 273) | ÷ | 9,462) |
| Dec 31, 2016 | 10.59% | = | 100 | × | 966) | ÷ | 9,119) |
| Dec 31, 2015 | 11.06% | = | 100 | × | 892) | ÷ | 8,068) |
| Dec 31, 2014 | 11.54% | = | 100 | × | 835) | ÷ | 7,233) |
| Dec 31, 2013 | 15.25% | = | 100 | × | 1,010) | ÷ | 6,622) |
| Dec 31, 2012 | 10.15% | = | 100 | × | 1,149) | ÷ | 11,317) |
| Dec 31, 2011 | 10.34% | = | 100 | × | 1,085) | ÷ | 10,492) |
| Dec 31, 2010 | 4.10% | = | 100 | × | 418) | ÷ | 10,203) |
| Dec 31, 2009 | 1.05% | = | 100 | × | 113) | ÷ | 10,756) |
| Dec 31, 2008 | -0.93% | = | 100 | × | (107) | ÷ | 11,527) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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).
1 US$ in millions
The financial data reveals significant fluctuations and trends in net income, shareholders' equity, and return on equity (ROE) over the analyzed period.
- Net Income (Loss)
- Initially, the company experienced a net loss of US$107 million in 2008, followed by a substantial recovery with net income rising to US$113 million in 2009. Thereafter, net income exhibited a strong upward trend, peaking at US$1,149 million in 2012. Post-2012, net income showed some variability, remaining above the US$800 million mark until 2016. A notable decline occurred in 2017, dropping sharply to US$273 million, and even further to US$181 million in 2018. Subsequently, net income recovered significantly, reaching its highest value of US$2,699 million in 2021, before declining again to US$1,513 million in 2022.
- Shareholders’ Equity
- Shareholders’ equity displayed a downward trend from US$11,527 million in 2008 to a low of US$6,622 million in 2013. This period reflects substantial depletion in equity levels. From 2013 onwards, equity steadily increased each year, indicating capital strengthening; it rose from US$7,233 million in 2014 to US$19,243 million by 2022. This recovery and growth suggest enhanced financial stability and accumulation of retained earnings or additional capital infusions during the latter part of the period.
- Return on Equity (ROE)
- The ROE metric shows a significant rebound from a negative -0.93% in 2008 to positive territory in 2009 (1.05%), followed by a robust increase, reaching double-digit percentages from 2011 onwards. The highest ROE values occurred in 2013 (15.25%) and 2021 (15.34%). A noticeable dip to 2.89% occurred in 2016, paralleling the decline in net income observed in subsequent years. The ROE of 7.86% in 2022 indicates a reduced efficiency in generating profits from shareholders' equity compared to the peak years.
Overall, the data indicates a recovery phase post-2008 financial difficulties, with significant improvements in profitability and equity levels from 2013 onwards. However, certain years, notably 2017 and 2018, reflect profit volatility. The trends in ROE correspond closely with the fluctuations in net income and shareholders’ equity, highlighting the company’s varying capacity to generate returns on the equity base during the period under review.
Comparison to Competitors
Activision Blizzard Inc., ROE, long-term trends, comparison to competitors
| Activision Blizzard Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 7.86% | 23.41% | 6.63% | 18.45% | 21.62% | 10.97% | 3.31% |
| Dec 31, 2021 | 15.34% | 30.22% | 14.73% | 31.53% | 32.28% | 17.67% | 2.25% |
| Dec 31, 2020 | 14.61% | 18.09% | 11.66% | 22.72% | 24.96% | 15.93% | -3.43% |
| Dec 31, 2019 | 11.74% | 17.05% | 15.78% | 18.29% | 24.62% | 16.36% | 12.44% |
| Dec 31, 2018 | 15.96% | 17.30% | 16.38% | 26.28% | 23.12% | 11.65% | 25.83% |
| Dec 31, 2017 | 2.89% | 8.30% | 33.11% | 21.43% | 15.60% | 6.71% | 21.74% |
| Dec 31, 2016 | 10.59% | 14.01% | 16.12% | 17.26% | 6.97% | -1.43% | 21.71% |
| Dec 31, 2015 | 11.06% | 13.59% | 15.62% | 8.34% | 5.52% | -49.63% | 18.83% |
| Dec 31, 2014 | 11.54% | 13.82% | 15.90% | 8.14% | 14.36% | 45.10% | 16.68% |
| Dec 31, 2013 | 15.25% | 14.80% | 13.45% | 9.70% | 8.43% | -5.02% | 13.51% |
| Dec 31, 2012 | 10.15% | 14.97% | 12.57% | 0.45% | 2.30% | -18.27% | 14.29% |
| Dec 31, 2011 | 10.34% | 16.75% | 8.80% | — | 35.18% | 7.88% | 12.86% |
| Dec 31, 2010 | 4.10% | 18.39% | 8.20% | — | 55.44% | -23.62% | 10.56% |
| Dec 31, 2009 | 1.05% | 18.11% | 8.52% | — | 58.18% | -27.25% | 9.80% |
| Dec 31, 2008 | -0.93% | 14.97% | 6.30% | — | 23.92% | 15.79% | 13.70% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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).
Comparison to Sector (Media & Entertainment)
Activision Blizzard Inc., ROE, long-term trends, comparison to sector (media & entertainment)
| Activision Blizzard Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2022 | 7.86% | 16.59% |
| Dec 31, 2021 | 15.34% | 23.65% |
| Dec 31, 2020 | 14.61% | 14.91% |
| Dec 31, 2019 | 11.74% | 16.36% |
| Dec 31, 2018 | 15.96% | 20.20% |
| Dec 31, 2017 | 2.89% | 17.85% |
| Dec 31, 2016 | 10.59% | 16.06% |
| Dec 31, 2015 | 11.06% | 13.79% |
| Dec 31, 2014 | 11.54% | 14.07% |
| Dec 31, 2013 | 15.25% | 13.67% |
| Dec 31, 2012 | 10.15% | 12.98% |
| Dec 31, 2011 | 10.34% | 13.17% |
| Dec 31, 2010 | 4.10% | 12.52% |
| Dec 31, 2009 | 1.05% | 11.88% |
| Dec 31, 2008 | -0.93% | 11.16% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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).
Comparison to Industry (Communication Services)
Activision Blizzard Inc., ROE, long-term trends, comparison to industry (communication services)
| Activision Blizzard Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2022 | 7.86% | 13.31% |
| Dec 31, 2021 | 15.34% | 20.33% |
| Dec 31, 2020 | 14.61% | 11.51% |
| Dec 31, 2019 | 11.74% | 15.27% |
| Dec 31, 2018 | 15.96% | 17.88% |
| Dec 31, 2017 | 2.89% | 22.82% |
| Dec 31, 2016 | 10.59% | 16.33% |
| Dec 31, 2015 | 11.06% | 16.29% |
| Dec 31, 2014 | 11.54% | 14.07% |
| Dec 31, 2013 | 15.25% | 16.60% |
| Dec 31, 2012 | 10.15% | 10.26% |
| Dec 31, 2011 | 10.34% | 8.87% |
| Dec 31, 2010 | 4.10% | 13.81% |
| Dec 31, 2009 | 1.05% | 11.54% |
| Dec 31, 2008 | -0.93% | 12.78% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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).