Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Activision Blizzard Inc., profitability ratios
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).
| 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 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Activision Blizzard Inc. operating profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Activision Blizzard Inc. net profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Activision Blizzard Inc. ROE improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Activision Blizzard Inc. ROA improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Gross Profit Margin
Activision Blizzard Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 5,306) | 6,486) | 5,826) | 4,395) | 4,983) | |
| Net revenues | 7,528) | 8,803) | 8,086) | 6,489) | 7,500) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 70.48% | 73.68% | 72.05% | 67.73% | 66.44% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 55.38% | 56.94% | 53.58% | — | — | |
| Comcast Corp. | 68.53% | 66.96% | 68.02% | — | — | |
| Meta Platforms Inc. | 78.35% | 80.79% | 80.58% | — | — | |
| Netflix Inc. | 39.37% | 41.64% | 38.89% | — | — | |
| Take-Two Interactive Software Inc. | 56.19% | 54.49% | 50.07% | — | — | |
| Walt Disney Co. | 34.24% | 33.06% | 32.89% | 39.60% | — | |
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).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Net revenues
= 100 × 5,306 ÷ 7,528 = 70.48%
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 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Operating Profit Margin
Activision Blizzard Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income | 1,670) | 3,259) | 2,734) | 1,607) | 1,988) | |
| Net revenues | 7,528) | 8,803) | 8,086) | 6,489) | 7,500) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | 22.18% | 37.02% | 33.81% | 24.76% | 26.51% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 26.46% | 30.55% | 22.59% | — | — | |
| Comcast Corp. | 11.56% | 17.89% | 16.89% | — | — | |
| Meta Platforms Inc. | 24.82% | 39.65% | 38.01% | — | — | |
| Netflix Inc. | 17.82% | 20.86% | 18.34% | — | — | |
| Take-Two Interactive Software Inc. | 13.51% | 18.66% | 13.77% | — | — | |
| Walt Disney Co. | 7.90% | 4.46% | -2.97% | 15.33% | — | |
| Operating Profit Margin, Sector | ||||||
| Media & Entertainment | 20.43% | 26.35% | 20.29% | — | — | |
| Operating Profit Margin, Industry | ||||||
| Communication Services | 16.69% | 22.44% | 16.34% | — | — | |
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).
1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenues
= 100 × 1,670 ÷ 7,528 = 22.18%
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net Profit Margin
Activision Blizzard Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 1,513) | 2,699) | 2,197) | 1,503) | 1,813) | |
| Net revenues | 7,528) | 8,803) | 8,086) | 6,489) | 7,500) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 20.10% | 30.66% | 27.17% | 23.16% | 24.17% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 21.20% | 29.51% | 22.06% | — | — | |
| Comcast Corp. | 4.42% | 12.17% | 10.17% | — | — | |
| Meta Platforms Inc. | 19.90% | 33.38% | 33.90% | — | — | |
| Netflix Inc. | 14.21% | 17.23% | 11.05% | — | — | |
| Take-Two Interactive Software Inc. | 11.93% | 17.46% | 13.09% | — | — | |
| Walt Disney Co. | 3.80% | 2.96% | -4.38% | 15.89% | — | |
| Net Profit Margin, Sector | ||||||
| Media & Entertainment | 15.12% | 23.17% | 17.24% | — | — | |
| Net Profit Margin, Industry | ||||||
| Communication Services | 11.47% | 18.71% | 11.50% | — | — | |
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).
1 2022 Calculation
Net profit margin = 100 × Net income ÷ Net revenues
= 100 × 1,513 ÷ 7,528 = 20.10%
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Equity (ROE)
Activision Blizzard Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 1,513) | 2,699) | 2,197) | 1,503) | 1,813) | |
| Shareholders’ equity | 19,243) | 17,599) | 15,037) | 12,805) | 11,357) | |
| Profitability Ratio | ||||||
| ROE1 | 7.86% | 15.34% | 14.61% | 11.74% | 15.96% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Alphabet Inc. | 23.41% | 30.22% | 18.09% | — | — | |
| Comcast Corp. | 6.63% | 14.73% | 11.66% | — | — | |
| Meta Platforms Inc. | 18.45% | 31.53% | 22.72% | — | — | |
| Netflix Inc. | 21.62% | 32.28% | 24.96% | — | — | |
| Take-Two Interactive Software Inc. | 10.97% | 17.67% | 15.93% | — | — | |
| Walt Disney Co. | 3.31% | 2.25% | -3.43% | 12.44% | — | |
| ROE, Sector | ||||||
| Media & Entertainment | 16.59% | 23.65% | 14.91% | — | — | |
| ROE, Industry | ||||||
| Communication Services | 13.31% | 20.33% | 11.51% | — | — | |
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).
1 2022 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,513 ÷ 19,243 = 7.86%
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Return on Assets (ROA)
Activision Blizzard Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income | 1,513) | 2,699) | 2,197) | 1,503) | 1,813) | |
| Total assets | 27,383) | 25,056) | 23,109) | 19,845) | 17,835) | |
| Profitability Ratio | ||||||
| ROA1 | 5.53% | 10.77% | 9.51% | 7.57% | 10.17% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Alphabet Inc. | 16.42% | 21.16% | 12.60% | — | — | |
| Comcast Corp. | 2.09% | 5.13% | 3.85% | — | — | |
| Meta Platforms Inc. | 12.49% | 23.72% | 18.29% | — | — | |
| Netflix Inc. | 9.24% | 11.48% | 7.03% | — | — | |
| Take-Two Interactive Software Inc. | 6.39% | 9.77% | 8.17% | — | — | |
| Walt Disney Co. | 1.54% | 0.98% | -1.42% | 5.70% | — | |
| ROA, Sector | ||||||
| Media & Entertainment | 9.05% | 13.01% | 8.04% | — | — | |
| ROA, Industry | ||||||
| Communication Services | 5.43% | 8.37% | 4.70% | — | — | |
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).
1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,513 ÷ 27,383 = 5.53%
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 improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |