Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
NXP Semiconductors N.V., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
- Gross Profit Margin
- The gross profit margin shows a consistent upward trend from 49.18% in April 2021 to 56.28% in July 2022. This indicates a steady improvement in the company’s ability to manage production costs relative to revenue over the examined periods.
- Operating Profit Margin
- The operating profit margin exhibits a significant increase from 4.85% in April 2021 to 27.00% by July 2022. This sharp rise demonstrates enhanced operational efficiency and cost control, contributing to gradually improving profitability before interest and taxes.
- Net Profit Margin
- The net profit margin increased markedly from 0.6% in April 2021 to 19.83% in July 2022. This reflects not only improved operating results but also effective management of interest, taxes, and other non-operating items, leading to stronger overall bottom-line profitability.
- Return on Equity (ROE)
- The return on equity shows considerable growth, rising from 0.58% in April 2021 to 35.16% by July 2022. This indicates that the company has become much more effective in generating profits from shareholders’ equity, suggesting successful capital utilization and value creation for investors.
- Return on Assets (ROA)
- The return on assets also improved significantly, increasing from 0.26% in April 2021 to 10.86% in July 2022. This implies enhanced efficiency in leveraging the company’s asset base to generate net income, reflecting positive operational performance over time.
Return on Sales
Return on Investment
Gross Profit Margin
NXP Semiconductors N.V., gross profit margin calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||
| Gross profit | 1,882) | 1,777) | 1,707) | 1,583) | 1,422) | 1,355) | 1,288) | 1,090) | 860) | 997) | ||||
| Revenue | 3,312) | 3,136) | 3,039) | 2,861) | 2,596) | 2,567) | 2,507) | 2,267) | 1,817) | 2,021) | ||||
| Profitability Ratio | ||||||||||||||
| Gross profit margin1 | 56.28% | 55.79% | 54.84% | 53.63% | 51.88% | 50.15% | 49.18% | — | — | — | ||||
| Benchmarks | ||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||
| Advanced Micro Devices Inc. | 48.01% | 48.53% | 48.25% | 46.82% | 45.71% | 44.79% | 44.53% | — | — | — | ||||
| Analog Devices Inc. | 58.33% | 57.81% | 61.83% | 68.04% | 67.36% | 66.37% | 65.87% | 65.39% | 65.56% | 66.43% | ||||
| Applied Materials Inc. | 47.51% | 47.67% | 47.32% | 46.69% | 45.83% | 44.96% | 44.72% | 44.23% | 44.04% | 43.81% | ||||
| Broadcom Inc. | 64.42% | 62.95% | 61.36% | 60.18% | 58.98% | 57.54% | 56.58% | 55.70% | 55.21% | 55.32% | ||||
| Intel Corp. | 49.85% | 54.32% | 55.45% | 56.27% | 55.59% | 54.62% | 56.01% | — | — | — | ||||
| KLA Corp. | 60.77% | 60.27% | 59.93% | 59.38% | 58.80% | 58.43% | 57.81% | 56.81% | 56.09% | 57.21% | ||||
| Lam Research Corp. | 46.30% | 46.19% | 46.53% | 46.49% | 46.59% | 46.43% | 45.88% | 45.86% | 45.20% | 45.13% | ||||
| Micron Technology Inc. | 45.81% | 41.37% | 37.62% | 33.66% | 30.70% | 31.37% | 30.57% | 29.03% | 30.33% | 36.11% | ||||
| NVIDIA Corp. | 63.76% | 62.43% | 62.34% | 62.62% | 62.84% | 63.47% | 61.99% | — | — | — | ||||
| Qualcomm Inc. | 58.51% | 58.16% | 57.51% | 59.82% | 59.99% | 60.17% | 60.67% | 56.96% | 65.07% | 65.22% | ||||
| Texas Instruments Inc. | 69.26% | 68.68% | 67.47% | 66.36% | 65.46% | 64.70% | 64.10% | — | — | — | ||||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2022 Calculation
Gross profit margin = 100
× (Gross profitQ2 2022
+ Gross profitQ1 2022
+ Gross profitQ4 2021
+ Gross profitQ3 2021)
÷ (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
= 100 × (1,882 + 1,777 + 1,707 + 1,583)
÷ (3,312 + 3,136 + 3,039 + 2,861)
= 56.28%
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit shows an overall upward trend over the observed periods. Starting from 997 million USD in March 2020, there was a decline to 860 million USD in June 2020, followed by a significant recovery and continuous growth. By July 2022, gross profit reached 1882 million USD, almost doubling the initial figure. This progression indicates improving profitability and cost management or increasing sales prices relative to cost of goods sold.
- Revenue
- Revenue mirrored a similar trend as gross profit, with a decline from 2021 million USD in March 2020 to 1817 million USD in June 2020. Subsequently, revenue increased consistently, reaching 3312 million USD by July 2022. This steady increase reflects growth in sales or demand for the company's products over the analyzed timeframe.
- Gross Profit Margin
- The gross profit margin, calculated from December 2020 onwards, exhibits a clear upward trajectory. Starting at 49.18% in December 2020, the margin increased steadily each quarter to 56.28% by July 2022. This increase suggests enhanced efficiency in production, pricing strategies, or a shift toward higher-margin products, contributing positively to the company’s profitability.
- Summary
- The data indicates a period of initial contraction in early 2020, likely due to external impacts, followed by strong recovery and growth in both revenue and gross profit. The improving gross profit margin further highlights effective operational performance and improved cost control. Overall, the company demonstrates solid financial health and improving profitability from late 2020 through mid-2022.
Operating Profit Margin
NXP Semiconductors N.V., operating profit margin calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||
| Operating income (loss) | 943) | 873) | 807) | 711) | 573) | 492) | 463) | 32) | (145) | 68) | ||||
| Revenue | 3,312) | 3,136) | 3,039) | 2,861) | 2,596) | 2,567) | 2,507) | 2,267) | 1,817) | 2,021) | ||||
| Profitability Ratio | ||||||||||||||
| Operating profit margin1 | 27.00% | 25.48% | 23.35% | 21.26% | 15.70% | 9.19% | 4.85% | — | — | — | ||||
| Benchmarks | ||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||
| Advanced Micro Devices Inc. | 16.83% | 20.86% | 22.20% | 20.27% | 18.83% | 16.23% | 14.02% | — | — | — | ||||
| Analog Devices Inc. | 20.42% | 18.87% | 23.12% | 31.59% | 30.06% | 28.83% | 26.74% | 24.91% | 25.30% | 26.56% | ||||
| Applied Materials Inc. | 31.80% | 31.37% | 29.87% | 28.47% | 26.49% | 25.30% | 25.37% | 24.26% | 23.58% | 23.20% | ||||
| Broadcom Inc. | 37.37% | 34.35% | 31.03% | 28.16% | 24.83% | 20.81% | 16.80% | 15.27% | 14.85% | 15.90% | ||||
| Intel Corp. | 18.88% | 25.87% | 24.62% | 25.93% | 26.00% | 26.17% | 30.41% | — | — | — | ||||
| KLA Corp. | 38.90% | 37.26% | 35.97% | 34.43% | 28.42% | 27.28% | 25.87% | 23.51% | 26.24% | 27.73% | ||||
| Lam Research Corp. | 31.60% | 31.06% | 30.64% | 29.55% | 28.68% | 28.02% | 26.62% | 26.37% | 25.20% | 25.40% | ||||
| Micron Technology Inc. | 31.86% | 27.17% | 22.68% | 17.60% | 15.21% | 15.19% | 14.01% | 12.33% | 13.36% | 20.04% | ||||
| NVIDIA Corp. | 33.36% | 28.62% | 27.18% | 27.17% | 27.13% | 29.41% | 26.07% | — | — | — | ||||
| Qualcomm Inc. | 32.65% | 30.88% | 29.16% | 31.74% | 30.35% | 29.04% | 26.58% | 17.52% | 32.49% | 32.59% | ||||
| Texas Instruments Inc. | 51.52% | 50.55% | 48.84% | 47.02% | 45.19% | 42.73% | 40.76% | — | — | — | ||||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2022 Calculation
Operating profit margin = 100
× (Operating income (loss)Q2 2022
+ Operating income (loss)Q1 2022
+ Operating income (loss)Q4 2021
+ Operating income (loss)Q3 2021)
÷ (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
= 100 × (943 + 873 + 807 + 711)
÷ (3,312 + 3,136 + 3,039 + 2,861)
= 27.00%
2 Click competitor name to see calculations.
The financial data exhibits a notable recovery and consistent growth in operating income following a significant loss early in the observed period. Initially, the operating income declined from a positive 68 million USD to a negative 145 million USD, indicating a substantial downturn. However, subsequent quarters show a steady upward trajectory, surpassing the pre-loss figure and reaching 943 million USD in the most recent quarter. This positive trend suggests effective operational improvements or favorable market conditions contributing to profitability enhancement over time.
Revenue demonstrates a general upward trend across the quarters. Starting from 2021 million USD, it experienced a dip in the initial quarters, falling to 1817 million USD. Afterward, revenue steadily increased, reaching 3312 million USD, which reflects a roughly 63% growth from the lowest point in the data set. This consistent rise in revenue aligns with the improvement in operating income, implying successful sales expansion or market penetration.
Operating profit margin, which was unavailable for the earliest quarters, shows a marked improvement throughout the periods where data exists. Beginning at 4.85% in December 2020, it has progressively increased in each quarter, reaching 27% by July 2022. This rising margin indicates not only growing revenues but also enhanced cost control or operational efficiency, leading to a higher proportion of revenue translating into operating profit.
Overall, the data reflects a company that experienced early challenges but has since managed a robust recovery characterized by increasing revenues, substantial growth in operating income, and improving profitability margins. This positive momentum signifies strengthened financial health and operational performance over the analyzed periods.
- Operating Income (Loss)
- Recovered from a loss of 145 million USD to a peak of 943 million USD, indicating a strong turnaround.
- Revenue
- Declined initially but sustained growth was observed, increasing from 1817 million USD to 3312 million USD.
- Operating Profit Margin
- Improved consistently from 4.85% to 27%, reflecting increased efficiency and profitability.
Net Profit Margin
NXP Semiconductors N.V., net profit margin calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||
| Net income (loss) attributable to stockholders | 670) | 657) | 602) | 519) | 397) | 353) | 309) | (22) | (214) | (21) | ||||
| Revenue | 3,312) | 3,136) | 3,039) | 2,861) | 2,596) | 2,567) | 2,507) | 2,267) | 1,817) | 2,021) | ||||
| Profitability Ratio | ||||||||||||||
| Net profit margin1 | 19.83% | 18.70% | 16.91% | 14.98% | 10.44% | 4.65% | 0.60% | — | — | — | ||||
| Benchmarks | ||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||
| Advanced Micro Devices Inc. | 14.51% | 17.98% | 19.24% | 26.72% | 25.76% | 25.24% | 25.50% | — | — | — | ||||
| Analog Devices Inc. | 16.84% | 15.18% | 19.00% | 26.15% | 25.16% | 23.99% | 21.79% | 20.14% | 20.05% | 21.06% | ||||
| Applied Materials Inc. | 27.20% | 27.10% | 25.53% | 24.54% | 22.35% | 21.19% | 21.04% | 19.58% | 18.89% | 18.83% | ||||
| Broadcom Inc. | 29.76% | 27.47% | 24.54% | 22.90% | 19.11% | 16.01% | 12.39% | 10.70% | 10.97% | 11.64% | ||||
| Intel Corp. | 26.03% | 31.68% | 25.14% | 26.89% | 23.91% | 23.93% | 26.84% | — | — | — | ||||
| KLA Corp. | 36.57% | 36.52% | 30.04% | 28.77% | 22.52% | 21.76% | 20.96% | 18.26% | 21.55% | 23.04% | ||||
| Lam Research Corp. | 27.78% | 27.07% | 26.72% | 26.07% | 24.85% | 23.60% | 22.42% | 21.81% | 21.67% | 22.38% | ||||
| Micron Technology Inc. | 28.95% | 24.86% | 21.16% | 16.20% | 13.60% | 13.59% | 12.54% | 11.16% | 11.72% | 17.01% | ||||
| NVIDIA Corp. | 32.33% | 27.66% | 25.98% | 25.89% | 25.94% | 28.18% | 25.61% | — | — | — | ||||
| Qualcomm Inc. | 28.42% | 27.71% | 26.94% | 28.25% | 27.28% | 25.21% | 22.09% | 13.72% | 16.36% | 17.31% | ||||
| Texas Instruments Inc. | 43.78% | 43.34% | 42.35% | 41.61% | 40.12% | 40.04% | 38.69% | — | — | — | ||||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2022 Calculation
Net profit margin = 100
× (Net income (loss) attributable to stockholdersQ2 2022
+ Net income (loss) attributable to stockholdersQ1 2022
+ Net income (loss) attributable to stockholdersQ4 2021
+ Net income (loss) attributable to stockholdersQ3 2021)
÷ (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
= 100 × (670 + 657 + 602 + 519)
÷ (3,312 + 3,136 + 3,039 + 2,861)
= 19.83%
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Stockholders
- The net income attributable to stockholders demonstrated a significant improvement over the analyzed periods. Initially, the company experienced negative net income with a loss of 21 million USD in March 2020, which deepened to a loss of 214 million USD in June 2020. Subsequently, net income recovered quickly and turned positive by December 2020 with 309 million USD. From that point onward, net income displayed a consistent upward trend, reaching 670 million USD by July 2022, indicating strengthened profitability.
- Revenue
- Revenue exhibited a generally upward trajectory with fluctuations early in the period. It started at 2,021 million USD in March 2020, declined to 1,817 million USD in June 2020, then increased steadily from September 2020 onwards. By July 2022, revenue reached 3,312 million USD, showing substantial growth over the course of the periods. This suggests expanding sales or higher demand for the company’s products or services.
- Net Profit Margin
- The net profit margin data is available starting December 2020 and shows a clear and continuous improvement. Beginning at 0.6% in December 2020, the margin rose substantially to 19.83% by July 2022. This upward trend implies increasing operational efficiency and better cost management, alongside improved profitability from rising revenues and net income figures.
- Overall Financial Performance
- The company’s financial performance improved markedly throughout the periods reviewed. After initial losses and revenue contraction in early 2020, there was a strong and steady recovery in both top-line and bottom-line metrics. The consistent growth in revenue coupled with increasing net income and expanding net profit margins suggests robust business momentum and effective management strategies. The trends indicate the company has transitioned from a loss position to achieving solid profitability within a relatively short timeframe.
Return on Equity (ROE)
NXP Semiconductors N.V., ROE calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||
| Net income (loss) attributable to stockholders | 670) | 657) | 602) | 519) | 397) | 353) | 309) | (22) | (214) | (21) | ||||
| Stockholders’ equity | 6,962) | 6,509) | 6,528) | 6,738) | 7,442) | 8,303) | 8,944) | 8,876) | 8,862) | 9,036) | ||||
| Profitability Ratio | ||||||||||||||
| ROE1 | 35.16% | 33.42% | 28.66% | 23.42% | 13.93% | 5.13% | 0.58% | — | — | — | ||||
| Benchmarks | ||||||||||||||
| ROE, Competitors2 | ||||||||||||||
| Advanced Micro Devices Inc. | 5.67% | 6.13% | 42.18% | 55.62% | 48.63% | 44.51% | 42.66% | — | — | — | ||||
| Analog Devices Inc. | 4.43% | 3.43% | 3.66% | 13.87% | 12.83% | 11.63% | 10.17% | 9.44% | 9.59% | 10.37% | ||||
| Applied Materials Inc. | 58.35% | 55.09% | 48.08% | 44.00% | 36.95% | 33.62% | 34.21% | 33.30% | 32.31% | 32.64% | ||||
| Broadcom Inc. | 42.58% | 34.09% | 26.99% | 24.94% | 20.40% | 16.49% | 12.40% | 10.54% | 10.48% | 10.83% | ||||
| Intel Corp. | 18.88% | 23.87% | 20.83% | 23.42% | 21.78% | 23.30% | 25.79% | — | — | — | ||||
| KLA Corp. | 73.76% | 70.61% | 61.53% | 59.60% | 46.59% | 46.99% | 45.65% | 44.35% | 42.61% | 42.32% | ||||
| Lam Research Corp. | 70.88% | 73.28% | 64.85% | 64.42% | 53.86% | 48.15% | 43.53% | 46.21% | 47.26% | 43.02% | ||||
| Micron Technology Inc. | 18.86% | 16.04% | 13.34% | 9.77% | 7.86% | 7.51% | 6.89% | 5.98% | 6.20% | 9.62% | ||||
| NVIDIA Corp. | 33.48% | 28.37% | 25.64% | 24.95% | 24.36% | 25.34% | 22.91% | — | — | — | ||||
| Qualcomm Inc. | 83.73% | 88.12% | 90.88% | 112.56% | 108.05% | 91.17% | 85.54% | 83.00% | 132.94% | 94.02% | ||||
| Texas Instruments Inc. | 60.86% | 58.62% | 58.27% | 60.23% | 60.30% | 60.73% | 60.90% | — | — | — | ||||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2022 Calculation
ROE = 100
× (Net income (loss) attributable to stockholdersQ2 2022
+ Net income (loss) attributable to stockholdersQ1 2022
+ Net income (loss) attributable to stockholdersQ4 2021
+ Net income (loss) attributable to stockholdersQ3 2021)
÷ Stockholders’ equity
= 100 × (670 + 657 + 602 + 519)
÷ 6,962 = 35.16%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends and patterns in the company's financial performance and position over the examined periods.
- Net Income (Loss) Attributable to Stockholders
- The net income shows significant volatility, with an initial loss of -21 million USD in March 2020, deepening to a substantial loss of -214 million USD in June 2020. This negative trend sharply reversed starting in December 2020, when net income turned positive at 309 million USD. From that point onward, the net income exhibited steady growth, reaching 670 million USD by July 2022. This pattern suggests a recovery phase beginning late 2020 followed by sustained profitability through mid-2022.
- Stockholders’ Equity
- The stockholders’ equity shows a general declining trend from 9,036 million USD in March 2020 to a low of 6,509 million USD in April 2022. There is a slight increase in July 2022 to 6,962 million USD; however, the overall decrease over the period amounts to approximately 23%. This decline in equity contrasts with the improvement in net income, possibly indicating dividend payments, share repurchases, or other capital management activities affecting equity levels.
- Return on Equity (ROE)
- ROE exhibits a notable upward trajectory beginning in December 2020 with a rate of 0.58%, rising sharply to 35.16% by July 2022. This sustained increase reflects improved profitability relative to the company’s equity base. The increase in ROE corresponds with the turnaround in net income despite the shrinking equity, indicating more efficient use of equity capital over time.
In summary, the company experienced a significant earnings downturn in early 2020 followed by a strong recovery and growth in net income. During this period, stockholders' equity declined steadily, possibly reflecting strategic capital management decisions. The continually rising ROE underscores enhanced profitability and efficiency in generating returns from equity despite reduced equity levels.
Return on Assets (ROA)
NXP Semiconductors N.V., ROA calculation (quarterly data)
| Jul 3, 2022 | Apr 3, 2022 | Dec 31, 2021 | Oct 3, 2021 | Jul 4, 2021 | Apr 4, 2021 | Dec 31, 2020 | Sep 27, 2020 | Jun 28, 2020 | Mar 29, 2020 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||
| Net income (loss) attributable to stockholders | 670) | 657) | 602) | 519) | 397) | 353) | 309) | (22) | (214) | (21) | ||||
| Total assets | 22,539) | 21,321) | 20,864) | 20,010) | 20,622) | 19,392) | 19,847) | 21,122) | 21,057) | 19,511) | ||||
| Profitability Ratio | ||||||||||||||
| ROA1 | 10.86% | 10.20% | 8.97% | 7.89% | 5.03% | 2.20% | 0.26% | — | — | — | ||||
| Benchmarks | ||||||||||||||
| ROA, Competitors2 | ||||||||||||||
| Advanced Micro Devices Inc. | 4.64% | 5.07% | 25.46% | 35.59% | 32.14% | 28.70% | 27.78% | — | — | — | ||||
| Analog Devices Inc. | 3.23% | 2.50% | 2.66% | 7.86% | 7.23% | 6.56% | 5.69% | 5.15% | 5.21% | 5.67% | ||||
| Applied Materials Inc. | 26.54% | 25.76% | 22.80% | 21.68% | 18.40% | 16.55% | 16.19% | 15.05% | 13.37% | 14.30% | ||||
| Broadcom Inc. | 12.45% | 10.69% | 8.91% | 8.00% | 6.47% | 5.14% | 3.90% | 3.13% | 3.08% | 3.26% | ||||
| Intel Corp. | 11.21% | 13.96% | 11.80% | 12.56% | 12.00% | 12.35% | 13.65% | — | — | — | ||||
| KLA Corp. | 25.57% | 24.46% | 20.23% | 18.68% | 13.93% | 13.85% | 13.11% | 11.57% | 12.30% | 12.20% | ||||
| Lam Research Corp. | 27.51% | 27.40% | 24.59% | 22.64% | 19.28% | 17.33% | 15.47% | 16.21% | 17.37% | 17.21% | ||||
| Micron Technology Inc. | 14.17% | 12.02% | 9.96% | 7.38% | 5.91% | 5.59% | 5.01% | 4.35% | 4.63% | 7.07% | ||||
| NVIDIA Corp. | 18.32% | 17.30% | 15.05% | 14.23% | 13.46% | 14.27% | 16.15% | — | — | — | ||||
| Qualcomm Inc. | 25.19% | 23.32% | 21.93% | 23.74% | 21.58% | 17.95% | 14.60% | 8.49% | 12.67% | 12.81% | ||||
| Texas Instruments Inc. | 34.69% | 32.51% | 31.48% | 31.45% | 32.64% | 31.44% | 28.91% | — | — | — | ||||
Based on: 10-Q (reporting date: 2022-07-03), 10-Q (reporting date: 2022-04-03), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-03), 10-Q (reporting date: 2021-07-04), 10-Q (reporting date: 2021-04-04), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-27), 10-Q (reporting date: 2020-06-28), 10-Q (reporting date: 2020-03-29).
1 Q2 2022 Calculation
ROA = 100
× (Net income (loss) attributable to stockholdersQ2 2022
+ Net income (loss) attributable to stockholdersQ1 2022
+ Net income (loss) attributable to stockholdersQ4 2021
+ Net income (loss) attributable to stockholdersQ3 2021)
÷ Total assets
= 100 × (670 + 657 + 602 + 519)
÷ 22,539 = 10.86%
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An analysis of the quarterly financial data reveals several key trends in profitability, asset base, and return on assets over the examined periods.
- Net Income (Loss) Attributable to Stockholders (in US$ millions)
- The net income exhibits significant volatility initially, with a loss recorded in the first two quarters of 2020 (-21 million and -214 million respectively). This was followed by a strong recovery starting in the fourth quarter of 2020, with positive net income reported in every subsequent period. The profitability improved steadily through 2021 and into 2022, with net income increasing consistently each quarter, reaching a high of 670 million by July 2022. This suggests a turnaround from a challenging start to a sustained phase of growth and increased profitability.
- Total Assets (in US$ millions)
- The total assets demonstrate a fluctuating but overall upward trend. After peaking in the third quarter of 2020, total assets experienced a slight decline at the end of 2020 and early 2021, dipping below 19,400 million. Thereafter, the asset base recovered and expanded steadily through 2021 and 2022, reaching a peak of 22,539 million by mid-2022. This increase indicates ongoing investments or growth in asset holdings, which may support operational expansion or capacity enhancement.
- Return on Assets (ROA, %)
- The ROA metric became available starting from the last quarter of 2020 and has shown a pronounced upward trend. Initially low at 0.26%, this ratio increased markedly to 2.2% in the first quarter of 2021 and continued climbing thereafter. By mid-2022, the ROA reached approximately 10.86%, reflecting increased efficiency in utilizing assets to generate net income. This improvement in asset productivity aligns with the rise in net income and suggests enhanced operational performance and profitability management.
Overall, the data depicts a company recovering from initial losses with a steady strengthening of earnings, an expanding asset base, and improving returns on assets. The upward trajectory in profitability and efficiency ratios indicates positive operational momentum and effective asset utilization over the examined timeframe.