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 data reveals notable fluctuations over the analyzed period in key performance indicators such as net income attributable to the company, stockholders' equity, and return on equity (ROE).
- Net Income
- Net income attributable to the company experienced considerable volatility. Starting from a high of approximately 1.90 billion USD at the end of 2005, net income dropped sharply to 751 million USD in 2006 and continued declining until reaching a low of around 424 million USD in 2008. A gradual recovery followed, peaking substantially at about 7.52 billion USD in 2014, which represents the highest value in the series. However, the subsequent years saw a steep reversal with net income turning negative in 2015 and 2016, reporting losses of approximately 4.36 billion USD and 214 million USD respectively.
- Total Stockholders’ Equity
- Total stockholders’ equity showed an overall upward trend, starting at around 8.57 billion USD in 2005 and increasing steadily to peak at roughly 38.74 billion USD in 2014. This rise reflects capital growth and retained earnings accumulation over time. Nevertheless, in the last two years of the period, equity declined notably to approximately 29.04 billion USD in 2015 and to about 31.05 billion USD in 2016, indicating possible equity reductions, repurchases, or restructuring effects.
- Return on Equity (ROE)
- The ROE trend displays significant variability corresponding to the fluctuations in net income and equity levels. From a strong return of 22.14% in 2005, ROE declined steadily to reach a low point of 3.77% in 2008. Thereafter, ROE increased again, peaking at 27.1% in 2012, which coincides with a period of growing net income and rising equity. Following this peak, ROE continued to fluctuate, with a notable decline into negative territory in 2015 (-15.01%) and a slight recovery to near zero (-0.69%) in 2016, reflecting the losses incurred and the partial equity erosion in those years.
Overall, the data depict a company experiencing phases of strong profitability and growth, followed by periods of financial stress and losses. The sharp peaks and troughs in net income and ROE indicate considerable operational and possibly strategic changes impacting financial performance. The equity trajectory suggests significant capital accumulation until 2014, with some reversal in subsequent years, possibly linked to the negative profitability and capital management decisions during that time frame.
Comparison to Competitors
Yahoo! Inc., ROE, long-term trends, comparison to competitors
| Yahoo! Inc. | 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. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -0.69% | 54.42% | 15.74% | 27.38% | — | 24.49% | 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% | — | 19.79% | 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% | — | 20.87% | 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% | — | 16.98% | 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% | — | 19.39% | 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% | — | 15.37% | 78.73% | 24.24% | 40.55% | 21.49% | — | — | 5.05% | — | 10.53% | — |
| Dec 31, 2010 | 9.81% | 62.79% | 14.92% | 45.74% | — | 13.57% | 64.36% | 20.35% | 40.63% | 19.92% | — | — | 7.73% | — | 11.29% | — |
| Dec 31, 2009 | 4.79% | 55.08% | 7.90% | -138.29% | — | 10.85% | 59.31% | 17.49% | 36.83% | 22.29% | — | — | 6.46% | — | 9.09% | — |
| Dec 31, 2008 | 3.77% | 66.59% | 19.77% | -1,818.25% | — | 14.94% | 91.60% | 23.00% | 48.73% | 23.98% | — | — | 4.06% | — | 12.43% | — |
| Dec 31, 2007 | 6.92% | 60.25% | 15.57% | 14.24% | — | 18.48% | 36.59% | 21.62% | 45.23% | 25.26% | — | — | 0.17% | — | 9.08% | — |
| Dec 31, 2006 | 8.20% | 51.38% | 9.82% | 8.39% | — | 13.44% | 33.30% | 23.99% | 31.42% | 22.52% | — | — | 14.50% | — | 2.13% | — |
| Dec 31, 2005 | 22.14% | 55.42% | 32.34% | 2.67% | — | 16.71% | 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% | 26.24% |
| Dec 31, 2015 | -15.01% | 23.03% |
| Dec 31, 2014 | 19.42% | 28.07% |
| Dec 31, 2013 | 10.45% | 31.66% |
| Dec 31, 2012 | 27.10% | 32.62% |
| Dec 31, 2011 | 8.36% | 38.74% |
| Dec 31, 2010 | 9.81% | 37.79% |
| Dec 31, 2009 | 4.79% | 35.83% |
| Dec 31, 2008 | 3.77% | 43.83% |
| Dec 31, 2007 | 6.92% | 35.38% |
| Dec 31, 2006 | 8.20% | 28.75% |
| Dec 31, 2005 | 22.14% | 24.85% |
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% | 23.36% |
| Dec 31, 2015 | -15.01% | 26.17% |
| Dec 31, 2014 | 19.42% | 25.60% |
| Dec 31, 2013 | 10.45% | 24.89% |
| Dec 31, 2012 | 27.10% | 26.24% |
| Dec 31, 2011 | 8.36% | 29.20% |
| Dec 31, 2010 | 9.81% | 27.87% |
| Dec 31, 2009 | 4.79% | 20.26% |
| Dec 31, 2008 | 3.77% | 25.64% |
| Dec 31, 2007 | 6.92% | 23.99% |
| Dec 31, 2006 | 8.20% | 22.71% |
| Dec 31, 2005 | 22.14% | 22.09% |
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).