Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Qualcomm Inc., profitability ratios

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Qualcomm Inc.’s gross profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Qualcomm Inc.’s operating profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Qualcomm Inc.’s net profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Qualcomm Inc.’s ROE deteriorated from 2016 to 2017 and from 2017 to 2018.
ROA	A profitability ratio calculated as net income divided by total assets.	Qualcomm Inc.’s ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

Qualcomm Inc., gross profit margin calculation, comparison to benchmarks

		Sep 30, 2018	Sep 24, 2017	Sep 25, 2016	Sep 27, 2015	Sep 28, 2014	Sep 29, 2013
	Selected Financial Data (USD $ in millions)
	Gross profit
	Revenues
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	Apple Inc.
	Applied Materials Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Texas Instruments Inc.

2018 Calculations

¹ Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Qualcomm Inc.’s gross profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.

Qualcomm Inc., operating profit margin calculation, comparison to benchmarks

		Sep 30, 2018	Sep 24, 2017	Sep 25, 2016	Sep 27, 2015	Sep 28, 2014	Sep 29, 2013
	Selected Financial Data (USD $ in millions)
	Operating income
	Revenues
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	Apple Inc.
	Applied Materials Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Texas Instruments Inc.
	Operating Profit Margin, Sector
	Technology Hardware & Equipment
	Operating Profit Margin, Industry
	Technology

2018 Calculations

¹ Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Qualcomm Inc.’s operating profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.

Qualcomm Inc., net profit margin calculation, comparison to benchmarks

		Sep 30, 2018	Sep 24, 2017	Sep 25, 2016	Sep 27, 2015	Sep 28, 2014	Sep 29, 2013
	Selected Financial Data (USD $ in millions)
	Net income (loss) attributable to Qualcomm
	Revenues
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	Apple Inc.
	Applied Materials Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Texas Instruments Inc.
	Net Profit Margin, Sector
	Technology Hardware & Equipment
	Net Profit Margin, Industry
	Technology

2018 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to Qualcomm ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Qualcomm Inc.’s net profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.

Qualcomm Inc., ROE calculation, comparison to benchmarks

		Sep 30, 2018	Sep 24, 2017	Sep 25, 2016	Sep 27, 2015	Sep 28, 2014	Sep 29, 2013
	Selected Financial Data (USD $ in millions)
	Net income (loss) attributable to Qualcomm
	Total Qualcomm stockholders’ equity
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	Apple Inc.
	Applied Materials Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Texas Instruments Inc.
	ROE, Sector
	Technology Hardware & Equipment
	ROE, Industry
	Technology

2018 Calculations

¹ ROE = 100 × Net income (loss) attributable to Qualcomm ÷ Total Qualcomm stockholders’ equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Qualcomm Inc.’s ROE deteriorated from 2016 to 2017 and from 2017 to 2018.

Qualcomm Inc., ROA calculation, comparison to benchmarks

		Sep 30, 2018	Sep 24, 2017	Sep 25, 2016	Sep 27, 2015	Sep 28, 2014	Sep 29, 2013
	Selected Financial Data (USD $ in millions)
	Net income (loss) attributable to Qualcomm
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	Apple Inc.
	Applied Materials Inc.
	Broadcom Inc.
	Cisco Systems Inc.
	HP Inc.
	Intel Corp.
	NVIDIA Corp.
	Texas Instruments Inc.
	ROA, Sector
	Technology Hardware & Equipment
	ROA, Industry
	Technology

2018 Calculations

¹ ROA = 100 × Net income (loss) attributable to Qualcomm ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	Qualcomm Inc.’s ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

	Qualcomm Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Qualcomm Inc. (QCOM)

Profitability Analysis