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: 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
| 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
| 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
| 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
| 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
| 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. |