Return on Equity (ROE)
since 2005
Calculation
Yahoo! Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Yahoo! Inc.1 | ÷ | Total Yahoo! Inc. stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -0.69% | = | 100 | × | (214,321) | ÷ | 31,049,283) |
| Dec 31, 2015 | -15.01% | = | 100 | × | (4,359,082) | ÷ | 29,043,537) |
| Dec 31, 2014 | 19.42% | = | 100 | × | 7,521,731) | ÷ | 38,741,837) |
| Dec 31, 2013 | 10.45% | = | 100 | × | 1,366,281) | ÷ | 13,074,909) |
| Dec 31, 2012 | 27.10% | = | 100 | × | 3,945,479) | ÷ | 14,560,200) |
| Dec 31, 2011 | 8.36% | = | 100 | × | 1,048,827) | ÷ | 12,541,067) |
| Dec 31, 2010 | 9.81% | = | 100 | × | 1,231,663) | ÷ | 12,558,129) |
| Dec 31, 2009 | 4.79% | = | 100 | × | 597,992) | ÷ | 12,493,320) |
| Dec 31, 2008 | 3.77% | = | 100 | × | 424,298) | ÷ | 11,250,942) |
| Dec 31, 2007 | 6.92% | = | 100 | × | 660,000) | ÷ | 9,532,831) |
| Dec 31, 2006 | 8.20% | = | 100 | × | 751,391) | ÷ | 9,160,610) |
| Dec 31, 2005 | 22.14% | = | 100 | × | 1,896,230) | ÷ | 8,566,415) |
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 net profitability and equity levels, resulting in unstable Return on Equity (ROE) figures over the observed period.
- Net Income Volatility
- A consistent decline in net income is observed from 2005 to 2008, with earnings dropping from $1.89 billion to $424 million. A recovery trend followed between 2009 and 2012, culminating in a peak of $3.94 billion. A substantial anomaly occurred in 2014 with a surge to $7.52 billion, which was immediately followed by a severe reversal in 2015 and 2016, where the company reported net losses of $4.36 billion and $214 million, respectively.
- Stockholders' Equity Evolution
- Equity grew steadily from $8.57 billion in 2005 to $14.56 billion in 2012. A sharp increase is noted in 2014, where stockholders' equity spiked to $38.74 billion. This figure subsequently corrected to $29.04 billion in 2015 and $31.05 billion in 2016, indicating a significant capital shift or one-time event during the 2014 fiscal year.
- Return on Equity (ROE) Patterns
- The ROE experienced a steep contraction from 22.14% in 2005 to a low of 3.77% in 2008. Efficiency metrics improved thereafter, reaching a high of 27.10% in 2012. While the ROE remained positive through 2014 at 19.42%, it plummeted to -15.01% in 2015, mirroring the sharp decline in net income. The period concludes with a marginal improvement to -0.69% in 2016, though the return remained negative.
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Comparison to Competitors
Yahoo! Inc., ROE, 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 | -0.69% | 54.42% | 15.74% | — | 27.38% | — | 65.07% | 84.32% | 23.33% | 18.82% | — | -28.60% | -0.95% | -116.76% | 8.35% | -25.52% |
| Dec 31, 2015 | -15.01% | 49.78% | 8.99% | — | 18.34% | — | 92.48% | 15.65% | 15.23% | 20.42% | — | -33.81% | -6.61% | -35.01% | 7.21% | -22.02% |
| Dec 31, 2014 | 19.42% | 51.32% | 3.96% | — | 11.92% | — | 101.30% | 29.47% | 24.59% | 23.37% | — | -48.33% | -7.64% | -41.85% | 8.48% | -14.53% |
| Dec 31, 2013 | 10.45% | 66.16% | 4.31% | — | 14.21% | — | 72.32% | 24.30% | 27.69% | 24.47% | — | -10.74% | -11.67% | -18.70% | 8.89% | -20.12% |
| Dec 31, 2012 | 27.10% | 61.59% | 12.49% | — | 48.07% | — | 88.04% | 28.86% | 25.58% | 22.85% | — | 0.32% | -0.73% | -15.34% | 7.29% | — |
| Dec 31, 2011 | 8.36% | 58.72% | 14.40% | — | 17.57% | — | 78.73% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Dec 31, 2010 | 9.81% | 62.79% | 14.92% | — | 45.74% | — | 64.36% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Dec 31, 2009 | 4.79% | 55.08% | 7.90% | — | -138.29% | — | 59.31% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
| Dec 31, 2008 | 3.77% | 66.59% | 19.77% | — | -1,818.25% | — | 91.60% | 23.00% | 48.73% | 23.98% | — | — | 4.06% | — | 12.43% | — |
| Dec 31, 2007 | 6.92% | 60.25% | 15.57% | — | 14.24% | — | 36.59% | 21.62% | 45.23% | 25.26% | — | — | 0.17% | — | 9.08% | — |
| Dec 31, 2006 | 8.20% | 51.38% | 9.82% | — | 8.39% | — | 33.30% | 23.99% | 31.42% | 22.52% | — | — | 14.50% | — | 2.13% | — |
| Dec 31, 2005 | 22.14% | 55.42% | 32.34% | — | 2.67% | — | 23.97% | 22.51% | 25.47% | 26.63% | — | — | 5.06% | — | -1.27% | — |
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., ROE, long-term trends, comparison to sector (software & services)
| Yahoo! Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2016 | -0.69% | 26.25% |
| Dec 31, 2015 | -15.01% | 23.04% |
| Dec 31, 2014 | 19.42% | 28.09% |
| Dec 31, 2013 | 10.45% | 31.71% |
| Dec 31, 2012 | 27.10% | 32.66% |
| Dec 31, 2011 | 8.36% | 38.82% |
| Dec 31, 2010 | 9.81% | 37.89% |
| Dec 31, 2009 | 4.79% | 35.98% |
| Dec 31, 2008 | 3.77% | 44.03% |
| Dec 31, 2007 | 6.92% | 35.48% |
| Dec 31, 2006 | 8.20% | 28.87% |
| Dec 31, 2005 | 22.14% | 24.91% |
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., ROE, long-term trends, comparison to industry (information technology)
| Yahoo! Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2016 | -0.69% | 23.00% |
| Dec 31, 2015 | -15.01% | 25.97% |
| Dec 31, 2014 | 19.42% | 25.43% |
| Dec 31, 2013 | 10.45% | 24.73% |
| Dec 31, 2012 | 27.10% | 26.09% |
| Dec 31, 2011 | 8.36% | 29.03% |
| Dec 31, 2010 | 9.81% | 27.62% |
| Dec 31, 2009 | 4.79% | 20.05% |
| Dec 31, 2008 | 3.77% | 25.24% |
| Dec 31, 2007 | 6.92% | 23.67% |
| Dec 31, 2006 | 8.20% | 22.58% |
| Dec 31, 2005 | 22.14% | 21.92% |
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).