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 performance from 2008 to 2022 is characterized by an initial recovery from losses, a period of moderate stability, and a significant surge in profitability toward the end of the decade, followed by a recent contraction.
- Net Income Trends
- A transition from a net loss of 107 million US dollars in 2008 to consistent profitability is observed starting in 2009. Earnings remained relatively stable between 2011 and 2016, generally fluctuating around the 1 billion US dollar mark. A notable contraction occurred in 2017, where net income dropped to 273 million US dollars. This was followed by a period of aggressive growth, peaking at 2,699 million US dollars in 2021, before declining to 1,513 million US dollars in 2022.
- Shareholders' Equity Evolution
- Equity levels remained stable between 2008 and 2012, hovering around 10 to 11 billion US dollars. A significant reduction in equity was recorded in 2013, falling to 6,622 million US dollars. From 2014 onward, a consistent upward trajectory is evident, with equity expanding steadily every year to reach a peak of 19,243 million US dollars by 2022. This indicates a long-term accumulation of retained earnings or capital infusions.
- Return on Equity (ROE) Analysis
- The ROE shifted from a negative 0.93% in 2008 to a peak of 15.25% in 2013. The 2013 spike is particularly noteworthy as it occurred during a sharp decline in shareholders' equity, suggesting that the increase in ROE was driven by a reduced equity base rather than an increase in net income. A significant trough is observed in 2017, with ROE falling to 2.89% in alignment with the dip in net income. The ratio recovered strongly between 2018 and 2021, maintaining levels between 11.74% and 15.96%, demonstrating strong earnings power relative to the growing equity base. However, the ROE declined to 7.86% in 2022, reflecting the simultaneous decrease in net income and the continued increase in total equity.
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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. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2022 | 7.86% | 23.41% | 6.63% | 18.45% | 21.62% | 3.31% |
| Dec 31, 2021 | 15.34% | 30.22% | 14.73% | 31.53% | 32.28% | 2.25% |
| Dec 31, 2020 | 14.61% | 18.09% | 11.66% | 22.72% | 24.96% | -3.43% |
| Dec 31, 2019 | 11.74% | 17.05% | 15.78% | 18.29% | 24.62% | 12.44% |
| Dec 31, 2018 | 15.96% | 17.30% | 16.38% | 26.28% | 23.12% | 25.83% |
| Dec 31, 2017 | 2.89% | 8.30% | 33.11% | 21.43% | 15.60% | 21.74% |
| Dec 31, 2016 | 10.59% | 14.01% | 16.12% | 17.26% | 6.97% | 21.71% |
| Dec 31, 2015 | 11.06% | 13.59% | 15.62% | 8.34% | 5.52% | 18.83% |
| Dec 31, 2014 | 11.54% | 13.82% | 15.90% | 8.14% | 14.36% | 16.68% |
| Dec 31, 2013 | 15.25% | 14.80% | 13.45% | 9.70% | 8.43% | 13.51% |
| Dec 31, 2012 | 10.15% | 14.97% | 12.57% | 0.45% | 2.30% | 14.29% |
| Dec 31, 2011 | 10.34% | 16.75% | 8.80% | — | 35.18% | 12.86% |
| Dec 31, 2010 | 4.10% | 18.39% | 8.20% | — | 55.44% | 10.56% |
| Dec 31, 2009 | 1.05% | 18.11% | 8.52% | — | 58.18% | 9.80% |
| Dec 31, 2008 | -0.93% | 14.97% | 6.30% | — | 23.92% | 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% | 16.62% |
| Dec 31, 2021 | 15.34% | 23.69% |
| Dec 31, 2020 | 14.61% | 14.90% |
| Dec 31, 2019 | 11.74% | 16.36% |
| Dec 31, 2018 | 15.96% | 20.24% |
| Dec 31, 2017 | 2.89% | 17.88% |
| Dec 31, 2016 | 10.59% | 16.09% |
| Dec 31, 2015 | 11.06% | 13.93% |
| Dec 31, 2014 | 11.54% | 13.96% |
| Dec 31, 2013 | 15.25% | 13.73% |
| Dec 31, 2012 | 10.15% | 13.09% |
| Dec 31, 2011 | 10.34% | 13.20% |
| Dec 31, 2010 | 4.10% | 12.67% |
| Dec 31, 2009 | 1.05% | 12.06% |
| Dec 31, 2008 | -0.93% | 11.13% |
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% | 13.32% |
| Dec 31, 2021 | 15.34% | 20.34% |
| Dec 31, 2020 | 14.61% | 11.50% |
| Dec 31, 2019 | 11.74% | 15.27% |
| Dec 31, 2018 | 15.96% | 17.89% |
| Dec 31, 2017 | 2.89% | 22.85% |
| Dec 31, 2016 | 10.59% | 16.35% |
| Dec 31, 2015 | 11.06% | 16.38% |
| Dec 31, 2014 | 11.54% | 14.00% |
| Dec 31, 2013 | 15.25% | 16.63% |
| Dec 31, 2012 | 10.15% | 10.32% |
| Dec 31, 2011 | 10.34% | 8.87% |
| Dec 31, 2010 | 4.10% | 13.88% |
| Dec 31, 2009 | 1.05% | 11.62% |
| Dec 31, 2008 | -0.93% | 12.77% |
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).