Return on Assets (ROA)
since 2005
Calculation
Yahoo! Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to Yahoo! Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -0.45% | = | 100 | × | (214,321) | ÷ | 48,083,079) |
| Dec 31, 2015 | -9.64% | = | 100 | × | (4,359,082) | ÷ | 45,203,966) |
| Dec 31, 2014 | 12.14% | = | 100 | × | 7,521,731) | ÷ | 61,960,344) |
| Dec 31, 2013 | 8.13% | = | 100 | × | 1,366,281) | ÷ | 16,804,959) |
| Dec 31, 2012 | 23.07% | = | 100 | × | 3,945,479) | ÷ | 17,103,253) |
| Dec 31, 2011 | 7.09% | = | 100 | × | 1,048,827) | ÷ | 14,782,786) |
| Dec 31, 2010 | 8.25% | = | 100 | × | 1,231,663) | ÷ | 14,928,104) |
| Dec 31, 2009 | 4.00% | = | 100 | × | 597,992) | ÷ | 14,936,030) |
| Dec 31, 2008 | 3.10% | = | 100 | × | 424,298) | ÷ | 13,689,848) |
| Dec 31, 2007 | 5.40% | = | 100 | × | 660,000) | ÷ | 12,229,741) |
| Dec 31, 2006 | 6.53% | = | 100 | × | 751,391) | ÷ | 11,513,608) |
| Dec 31, 2005 | 17.51% | = | 100 | × | 1,896,230) | ÷ | 10,831,834) |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial performance from 2005 to 2016 is characterized by significant volatility in asset utilization and profitability, resulting in a fluctuating Return on Assets (ROA) profile.
- Profitability Trends
- Net income experienced a period of decline between 2005 and 2008, falling from US$ 1,896,230 thousand to US$ 424,298 thousand. A subsequent recovery was observed, culminating in a peak of US$ 7,521,731 thousand in 2014. However, this trend reversed sharply in the final two years, with the company reporting net losses of US$ 4,359,082 thousand in 2015 and US$ 214,321 thousand in 2016.
- Asset Base Expansion
- Total assets grew steadily from US$ 10,831,834 thousand in 2005 to US$ 17,103,253 thousand in 2012. A substantial increase occurred in 2014, where assets surged to US$ 61,960,344 thousand, before contracting and stabilizing between US$ 45 billion and US$ 48 billion through 2016.
- Return on Assets (ROA) Analysis
- The ROA exhibited a highly cyclical pattern. An initial contraction is noted from 2005 to 2008, where the ratio dropped from 17.51% to 3.10%. A strong rebound followed, reaching a period high of 23.07% in 2012. This efficiency declined in subsequent years, dropping to 12.14% in 2014 despite record net income, due to the simultaneous expansion of the asset base. A severe downturn occurred in 2015, with the ROA falling to -9.64%, before a marginal improvement to -0.45% was recorded in 2016.
The divergence between asset growth and net income in the latter part of the period indicates a period of diminished operational efficiency. The massive expansion of the asset base in 2014 did not translate into sustained profitability, eventually leading to negative returns on assets by 2015.
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Comparison to Competitors
Yahoo! Inc., ROA, long-term trends, comparison to competitors
| Yahoo! Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | 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. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -0.45% | 19.95% | 9.20% | — | 9.69% | — | 10.11% | 23.04% | 8.67% | 7.93% | — | -8.18% | -0.37% | -22.22% | 5.09% | -10.62% |
| Dec 31, 2015 | -9.64% | 16.72% | 5.37% | — | 10.74% | — | 11.94% | 7.35% | 6.92% | 8.96% | — | -8.40% | -2.46% | -10.98% | 4.48% | -10.51% |
| Dec 31, 2014 | 12.14% | 16.41% | 2.49% | — | 4.95% | — | 10.23% | 17.44% | 12.81% | 12.13% | — | -15.32% | -2.54% | -12.59% | 5.43% | -7.93% |
| Dec 31, 2013 | 8.13% | 19.46% | 2.79% | — | 6.76% | — | 13.06% | 15.64% | 15.35% | 13.35% | — | -4.99% | -4.89% | -6.31% | 5.68% | -12.43% |
| Dec 31, 2012 | 23.07% | 15.32% | 8.35% | — | 19.24% | — | 13.93% | 16.91% | 14.00% | 12.74% | — | 0.18% | -0.28% | -7.81% | 4.40% | — |
| Dec 31, 2011 | 7.09% | 14.48% | 9.26% | — | 4.10% | — | 13.62% | 12.41% | 21.30% | 11.62% | — | — | 2.09% | — | 6.57% | — |
| Dec 31, 2010 | 8.25% | 13.87% | 9.52% | — | 7.31% | — | 13.07% | 11.04% | 21.79% | 9.96% | — | — | 3.28% | — | 7.21% | — |
| Dec 31, 2009 | 4.00% | 12.97% | 5.31% | — | -10.62% | — | 12.31% | 9.26% | 18.71% | 11.80% | — | — | 2.93% | — | 5.71% | — |
| Dec 31, 2008 | 3.10% | 13.64% | 14.98% | — | -110.44% | — | 11.26% | 10.22% | 24.29% | 11.68% | — | — | 1.68% | — | 6.93% | — |
| Dec 31, 2007 | 5.40% | 11.57% | 12.67% | — | 7.65% | — | 8.65% | 10.35% | 22.26% | 12.36% | — | — | 0.07% | — | 4.99% | — |
| Dec 31, 2006 | 6.53% | 10.33% | 8.48% | — | 4.14% | — | 9.19% | 15.05% | 18.10% | 11.65% | — | — | 6.55% | — | 1.15% | — |
| Dec 31, 2005 | 17.51% | 10.50% | 24.70% | — | 1.45% | — | 7.50% | 14.05% | 17.30% | 13.95% | — | — | 2.62% | — | -0.72% | — |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Software & Services)
Yahoo! Inc., ROA, long-term trends, comparison to sector (software & services)
| Yahoo! Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2016 | -0.45% | 8.86% |
| Dec 31, 2015 | -9.64% | 8.53% |
| Dec 31, 2014 | 12.14% | 11.18% |
| Dec 31, 2013 | 8.13% | 13.46% |
| Dec 31, 2012 | 23.07% | 13.36% |
| Dec 31, 2011 | 7.09% | 15.34% |
| Dec 31, 2010 | 8.25% | 14.69% |
| Dec 31, 2009 | 4.00% | 13.64% |
| Dec 31, 2008 | 3.10% | 14.32% |
| Dec 31, 2007 | 5.40% | 12.84% |
| Dec 31, 2006 | 6.53% | 12.19% |
| Dec 31, 2005 | 17.51% | 11.53% |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
Yahoo! Inc., ROA, long-term trends, comparison to industry (information technology)
| Yahoo! Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2016 | -0.45% | 9.68% |
| Dec 31, 2015 | -9.64% | 11.51% |
| Dec 31, 2014 | 12.14% | 12.33% |
| Dec 31, 2013 | 8.13% | 13.22% |
| Dec 31, 2012 | 23.07% | 14.06% |
| Dec 31, 2011 | 7.09% | 15.11% |
| Dec 31, 2010 | 8.25% | 14.45% |
| Dec 31, 2009 | 4.00% | 10.04% |
| Dec 31, 2008 | 3.10% | 11.87% |
| Dec 31, 2007 | 5.40% | 11.93% |
| Dec 31, 2006 | 6.53% | 12.20% |
| Dec 31, 2005 | 17.51% | 12.71% |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).