Stock Analysis on Net

Activision Blizzard Inc. (NASDAQ:ATVI)

This company has been moved to the archive! The financial data has not been updated since November 2, 2021.

Analysis of Profitability Ratios 

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Activision Blizzard Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Return on Sales
Gross profit margin 72.05% 67.73% 66.44% 64.36% 63.77%
Operating profit margin 33.81% 24.76% 26.51% 18.65% 21.37%
Net profit margin 27.17% 23.16% 24.17% 3.89% 14.62%
Return on Investment
Return on equity (ROE) 14.61% 11.74% 15.96% 2.89% 10.59%
Return on assets (ROA) 9.51% 7.57% 10.17% 1.46% 5.54%

Based on: 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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Activision Blizzard Inc. gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Activision Blizzard Inc. operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Activision Blizzard Inc. net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Activision Blizzard Inc. ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
ROA A profitability ratio calculated as net income divided by total assets. Activision Blizzard Inc. ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Gross Profit Margin

Activision Blizzard Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Gross profit 5,826  4,395  4,983  4,516  4,214 
Net revenues 8,086  6,489  7,500  7,017  6,608 
Profitability Ratio
Gross profit margin1 72.05% 67.73% 66.44% 64.36% 63.77%
Benchmarks
Gross Profit Margin, Competitors2
Alphabet Inc. 53.58% 55.58% 56.48% 58.88%
Charter Communications Inc. 37.77% 36.14% 36.15% 36.17%
Comcast Corp. 68.02% 68.39% 68.58% 69.97%
Meta Platforms Inc. 80.58% 81.94% 83.25% 86.58%
Netflix Inc. 38.89% 38.28% 36.89% 34.49%
Twitter Inc. 63.23% 67.13% 68.28% 64.75%
Walt Disney Co. 32.89% 39.60% 44.94% 45.04% 46.09%

Based on: 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).

1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × 5,826 ÷ 8,086 = 72.05%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Activision Blizzard Inc. gross profit margin ratio improved from 2018 to 2019 and from 2019 to 2020.

Operating Profit Margin

Activision Blizzard Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Operating income 2,734  1,607  1,988  1,309  1,412 
Net revenues 8,086  6,489  7,500  7,017  6,608 
Profitability Ratio
Operating profit margin1 33.81% 24.76% 26.51% 18.65% 21.37%
Benchmarks
Operating Profit Margin, Competitors2
Alphabet Inc. 22.59% 21.15% 19.24% 23.59%
Charter Communications Inc. 17.48% 14.23% 11.97% 9.87%
Comcast Corp. 16.89% 19.39% 20.11% 21.28%
Meta Platforms Inc. 38.01% 33.93% 44.62% 49.70%
Netflix Inc. 18.34% 12.92% 10.16% 7.17%
Twitter Inc. 0.72% 10.59% 14.90% 1.59%
Walt Disney Co. -2.97% 15.33% 24.91% 24.98% 25.53%
Operating Profit Margin, Sector
Media & Entertainment 19.92% 20.71% 22.57% 23.95%
Operating Profit Margin, Industry
Communication Services 16.35% 19.50% 19.36% 20.23%

Based on: 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).

1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 2,734 ÷ 8,086 = 33.81%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Activision Blizzard Inc. operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Net Profit Margin

Activision Blizzard Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 2,197  1,503  1,813  273  966 
Net revenues 8,086  6,489  7,500  7,017  6,608 
Profitability Ratio
Net profit margin1 27.17% 23.16% 24.17% 3.89% 14.62%
Benchmarks
Net Profit Margin, Competitors2
Alphabet Inc. 22.06% 21.22% 22.46% 11.42%
Charter Communications Inc. 6.70% 3.64% 2.82% 23.80%
Comcast Corp. 10.17% 11.99% 12.41% 26.87%
Meta Platforms Inc. 33.90% 26.15% 39.60% 39.20%
Netflix Inc. 11.05% 9.26% 7.67% 4.78%
Twitter Inc. -30.56% 42.37% 39.63% -4.42%
Walt Disney Co. -4.38% 15.89% 21.20% 16.29% 16.88%
Net Profit Margin, Sector
Media & Entertainment 15.93% 17.05% 19.76% 20.36%
Net Profit Margin, Industry
Communication Services 11.06% 14.14% 15.73% 19.99%

Based on: 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).

1 2020 Calculation
Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 2,197 ÷ 8,086 = 27.17%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Activision Blizzard Inc. net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Return on Equity (ROE)

Activision Blizzard Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 2,197  1,503  1,813  273  966 
Shareholders’ equity 15,037  12,805  11,357  9,462  9,119 
Profitability Ratio
ROE1 14.61% 11.74% 15.96% 2.89% 10.59%
Benchmarks
ROE, Competitors2
Alphabet Inc. 18.09% 17.05% 17.30% 8.30%
Charter Communications Inc. 13.53% 5.30% 3.39% 25.32%
Comcast Corp. 11.66% 15.78% 16.38% 33.11%
Meta Platforms Inc. 22.72% 18.29% 26.28% 21.43%
Netflix Inc. 24.96% 24.62% 23.12% 15.60%
Twitter Inc. -14.25% 16.84% 17.71% -2.14%
Walt Disney Co. -3.43% 12.44% 25.83% 21.74% 21.71%
ROE, Sector
Media & Entertainment 14.44% 15.70% 18.78% 18.37%
ROE, Industry
Communication Services 11.32% 14.89% 17.13% 22.80%

Based on: 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).

1 2020 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 2,197 ÷ 15,037 = 14.61%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Activision Blizzard Inc. ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Return on Assets (ROA)

Activision Blizzard Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Net income 2,197  1,503  1,813  273  966 
Total assets 23,109  19,845  17,835  18,668  17,452 
Profitability Ratio
ROA1 9.51% 7.57% 10.17% 1.46% 5.54%
Benchmarks
ROA, Competitors2
Alphabet Inc. 12.60% 12.45% 13.20% 6.42%
Charter Communications Inc. 2.23% 1.13% 0.84% 6.75%
Comcast Corp. 3.85% 4.96% 4.66% 12.15%
Meta Platforms Inc. 18.29% 13.86% 22.72% 18.85%
Netflix Inc. 7.03% 5.49% 4.66% 2.94%
Twitter Inc. -8.49% 11.54% 11.86% -1.46%
Walt Disney Co. -1.42% 5.70% 12.78% 9.37% 10.20%
ROA, Sector
Media & Entertainment 7.12% 7.72% 9.37% 9.58%
ROA, Industry
Communication Services 4.45% 5.95% 6.85% 8.93%

Based on: 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).

1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 2,197 ÷ 23,109 = 9.51%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Activision Blizzard Inc. ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.