Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Operating Profit Margin since 2015
- Return on Equity (ROE) since 2015
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Profitability Ratios (Summary)
PayPal Holdings Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Operating Profit Margin
- The operating profit margin began with a value of 14.2% in the first reported quarter of 2018 and showed a generally increasing trend through 2019 and 2020, reaching a peak of 17.23% in the third quarter of 2021. However, starting from the end of 2021 and into 2022, this margin experienced a gradual decline, falling to 13.52% by mid-2022. The margin then stabilized moderately around 13.5% to 14.7% through the first quarter of 2023.
- Net Profit Margin
- Net profit margin demonstrated an upward trajectory from 13.31% at the start of 2018, attaining a high of 22.8% in the second quarter of 2021. Subsequent to this peak, there was a notable decrease, with the margin dropping to as low as 7.79% in the third quarter of 2022. A slight recovery was observable afterward, with the margin reaching 9.63% by the first quarter of 2023. The volatility in net profit margin after 2021 indicates increased variability in profitability during this period.
- Return on Equity (ROE)
- The return on equity increased steadily from 13.37% in early 2018 to a pronounced peak of 26.82% in the second quarter of 2021, highlighting strong shareholder returns during this time. Post-peak, ROE exhibited a marked decline, declining to 10.4% in the third quarter of 2022. A mild upward trend followed, with ROE reaching 13.62% by the end of the observed period in early 2023. This suggests a period of strong equity efficiency followed by a substantial dip and moderate recovery.
- Return on Assets (ROA)
- Return on assets showed a more subdued rise from 4.75% in early 2018 to a peak of 7.19% in the second quarter of 2021. Following this peak, ROA declined significantly to as low as 2.64% in the third quarter of 2022. By the end of the data set in early 2023, there was a slight rebound in ROA to 3.5%. The pattern indicates an initial improvement in asset utilization efficiency which weakened considerably after mid-2021 before showing signs of partial recovery.
Return on Sales
Return on Investment
Operating Profit Margin
PayPal Holdings Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues exhibit a generally upward trend from March 2018 through March 2023. Starting at $3,685 million in the first quarter of 2018, revenues increased steadily, reaching a peak of $7,383 million in the first quarter of 2023 with some fluctuations. Notably, there is a significant revenue increase from late 2019 to 2021, where revenues climbed from approximately $4,961 million in December 2019 to around $6,918 million by the end of 2021. Despite some minor volatility in 2022 and early 2023, revenues remain substantially higher than earlier periods.
- Operating Income
- Operating income displays more variability than net revenues. From $534 million in the first quarter of 2018, operating income showed a gradual increase with some fluctuations, peaking at $1,127 million in the second quarter of 2021. There is a notable dip in operating income in March 2020 to $398 million, likely reflecting the initial impact of the pandemic, followed by a recovery that brought operating income back above previous highs by the end of 2020. In 2022, operating income experienced fluctuations, with a decline observed in the first quarter to $711 million, although it improved towards the fourth quarter at $1,244 million before a slight decrease to $999 million in the first quarter of 2023.
- Operating Profit Margin
- The operating profit margin demonstrates a positive progression over the period it is reported. Beginning at 14.2% in March 2019, the margin generally rose, reaching a peak of 17.23% in June 2021. Following this peak, there is a gradual decline through 2022 where margins decreased to approximately 13.47% in September 2022 before a modest recovery to 14.69% by March 2023. This suggests improved operational efficiency up to mid-2021, with some pressure on profitability margins in the subsequent periods.
- Summary of Trends
- Overall, the data indicates strong revenue growth over the analyzed period, accompanied by fluctuating but generally increasing operating income and operating profit margins. The company appears to have improved operational profitability until mid-2021, after which some margin compression occurred. The dip in operating income in early 2020 reflects a temporary challenge, yet the firm showed resilience with subsequent recovery. The recent quarters indicate relatively stable revenues and operating margins, though operating income shows greater volatility.
Net Profit Margin
PayPal Holdings Inc., net profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Net profit margin = 100
× (Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022
+ Net income (loss)Q2 2022)
÷ (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Income (Loss) Trends
- Net income exhibited notable fluctuations over the observed periods. Initially, it showed moderate growth from $511 million in March 2018 to a peak of $823 million by June 2019. This was followed by a sharp decline at the end of 2019 and early 2020, reaching as low as $84 million in March 2020. Subsequently, the net income rebounded significantly during 2020, peaking at $1,567 million in December 2020. In 2021, the net income remained relatively strong, fluctuating around the $1,000 million mark, before declining noticeably in 2022 with a negative $341 million in June 2022. The year 2023 saw a recovery with net income rising back above $700 million by March 2023.
- Net Revenues Patterns
- Net revenues demonstrated an overall upward trend across the quarters. Beginning at approximately $3.7 billion in early 2018, the revenues consistently increased with some quarter-to-quarter variability. The trend continued steadily upward through 2019 and 2020, reaching a significant increase of over $6 billion by the end of 2020. Revenues in 2021 remained strong, with values consistently above $6 billion, peaking at $6.9 billion in December 2021. In 2022, revenues experienced slight volatility but remained elevated, fluctuating between $6.4 billion and $6.8 billion. The first quarter of 2023 demonstrated a further increase to $7 billion.
- Net Profit Margin Analysis
- The net profit margin, calculated as a percentage, showed an improving trend from 2018 through late 2021. Starting from around 13.3% in early 2018, the margin rose steadily to a peak of 22.8% in March 2021. After this peak, profitability margins witnessed a gradual decline, falling to 7.79% by September 2022. Although some recovery was noted in subsequent quarters, net profit margins stabilized at lower levels relative to their peak, maintaining around 8–9% through early 2023.
- Summary of Insights
- The financial data reveals a pattern of growth in net revenues, suggesting effective business expansion and revenue generation capabilities. However, net income and profit margins displayed considerable variability, influenced likely by external factors impacting costs, expenses, or other operational aspects. The sharp decline in net income and margins in 2022 highlights potential challenges faced during that period, despite revenue levels remaining relatively strong. The partial recovery in net income and margins during early 2023 indicates a positive adjustment, but overall profitability remains below the peak levels seen in 2021.
Return on Equity (ROE)
PayPal Holdings Inc., ROE calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||
| Total PayPal stockholders’ equity | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
ROE = 100
× (Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022
+ Net income (loss)Q2 2022)
÷ Total PayPal stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The company's net income exhibits significant volatility over the presented quarters, with a general upward trend from 2018 through the end of 2021, followed by increased fluctuations in 2022 and early 2023. Beginning at $511 million in the first quarter of 2018, net income rose steadily, peaking notably at $1,567 million by the fourth quarter of 2020. This was followed by relatively stable but slightly lower figures throughout 2021, fluctuating between approximately $801 million and $1,184 million. In 2022, net income showed volatility with a notable negative value of -$341 million in the second quarter, indicating a potential loss period. The subsequent quarters recovered to positive figures, with values around $1,330 million and $921 million, then moderating to $795 million in the first quarter of 2023.
Stockholders' equity shows a consistent upward trajectory from early 2018 through 2021, reflecting ongoing accumulation of assets or retained earnings. Starting at $14,641 million in March 2018, it increased steadily to a high of $22,090 million in the third quarter of 2021. Post-2021, equity levels slightly declined and stabilized, standing at approximately $19,858 million by the first quarter of 2023. This suggests a plateauing phase or potential capital returns during the period, accompanied by fluctuations possibly tied to market valuation, dividends, or share repurchases.
The return on equity (ROE), available from March 2019 onwards, indicates fluctuating profitability in relation to equity. Initially, ROE was moderate at 13.37%, rising gradually and peaking at 26.82% in the third quarter of 2021. This peak aligns with high net income levels and suggests efficient use of equity capital during this period. Afterward, ROE declined substantially, hitting a low of 10.4% in the third quarter of 2022, coinciding with the equity decline and the negative net income reported earlier that year. Subsequently, ROE showed slight improvement, reaching 13.62% by the first quarter of 2023.
Overall, the financial data reveals a period of growth and profitability improvements from 2018 through 2021, followed by volatility and some challenges in 2022. The high peaks in profitability and equity suggest strong operational performance and capital management during growth phases, whereas the losses and equity decrease hint at external pressures or internal issues impacting financial returns in recent periods. The recovery signs in early 2023 may indicate stabilization or adjustment efforts underway.
- Net Income Trends
- Steady increase from 2018 to late 2020, peaking at $1,567 million. Moderate decline and volatility through 2021 and 2022, including a significant loss in mid-2022.
- Stockholders' Equity Trends
- Continuous growth from 2018 to 2021, reaching over $22 billion, followed by a gradual decline and stabilization near $20 billion by early 2023.
- Return on Equity (ROE) Trends
- ROE rose from about 13% in early 2019 to a peak of nearly 27% in late 2021, then declined to around 10% in late 2022 before recovering slightly.
- Key Insights
- The company experienced significant growth and profitability improvements through mid-2021, with operational efficiency indicated by strong ROE. However, 2022 introduced financial stress marked by losses and reduced equity returns, followed by early signs of recovery in 2023.
Return on Assets (ROA)
PayPal Holdings Inc., ROA calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||
| Accenture PLC | ||||||||||||||||||||||||||||
| Adobe Inc. | ||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | ||||||||||||||||||||||||||||
| CrowdStrike Holdings Inc. | ||||||||||||||||||||||||||||
| Fair Isaac Corp. | ||||||||||||||||||||||||||||
| International Business Machines Corp. | ||||||||||||||||||||||||||||
| Intuit Inc. | ||||||||||||||||||||||||||||
| Microsoft Corp. | ||||||||||||||||||||||||||||
| Oracle Corp. | ||||||||||||||||||||||||||||
| Palantir Technologies Inc. | ||||||||||||||||||||||||||||
| Palo Alto Networks Inc. | ||||||||||||||||||||||||||||
| Salesforce Inc. | ||||||||||||||||||||||||||||
| ServiceNow Inc. | ||||||||||||||||||||||||||||
| Synopsys Inc. | ||||||||||||||||||||||||||||
| Workday Inc. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
ROA = 100
× (Net income (loss)Q1 2023
+ Net income (loss)Q4 2022
+ Net income (loss)Q3 2022
+ Net income (loss)Q2 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Income (Loss) Trends
- The net income figures exhibit notable volatility throughout the presented periods. Initially, there is a general positive trajectory from early 2018 through mid-2019, peaking at 823 million USD in June 2019. However, a sharp decline occurs in the first quarter of 2020, with net income dropping to 84 million USD amidst an otherwise upward momentum later in 2020, reaching a peak of 1567 million USD in December 2020. The trend remains positive into early 2021 but shows a gradual decline afterward, turning negative in June 2022 (–341 million USD). Recovery is visible in the subsequent quarters, with net income rising again to 1330 million USD in September 2022 but tapering off somewhat by the first quarter of 2023.
- Total Assets Analysis
- Total assets demonstrate a consistent and steady increase across the entire timeline. Starting around 42 billion USD in early 2018, assets grow progressively, surpassing 70 billion USD by the end of 2020 and reaching approximately 78 billion USD by early 2023. This steady asset growth indicates ongoing expansion or accumulation of resources despite fluctuations in net income.
- Return on Assets (ROA) Evaluation
- The return on assets ratio, available from the first quarter of 2019 onwards, shows an initial upward trend, peaking at 7.19% in the second quarter of 2021. Post this peak, ROA declines progressively, reaching a low of 2.64% in September 2022 before slightly improving to 3.5% by the first quarter of 2023. This pattern suggests that profitability relative to asset base improved significantly until mid-2021, followed by a period of reduced efficiency or profitability.
- Summary of Observations
- Overall, the data reflects a company experiencing robust asset growth coupled with fluctuating profitability. Despite steady increases in total assets, net income has shown irregular behavior with significant peaks and troughs, including a notable operating loss in mid-2022. Return on assets follows a similar pattern, indicating that while asset base expansion was consistent, the efficiency with which these assets generated earnings was variable, peaking mid-2021 before declining thereafter. The recent partial recovery in net income and ROA points to potential stabilization but also highlights ongoing volatility in financial performance.