Total Asset Turnover
since 2005
Calculation
Yahoo! Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Revenue1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Dec 31, 2016 | 0.11 | = | 5,169,135) | ÷ | 48,083,079) |
| Dec 31, 2015 | 0.11 | = | 4,968,301) | ÷ | 45,203,966) |
| Dec 31, 2014 | 0.07 | = | 4,618,133) | ÷ | 61,960,344) |
| Dec 31, 2013 | 0.28 | = | 4,680,380) | ÷ | 16,804,959) |
| Dec 31, 2012 | 0.29 | = | 4,986,566) | ÷ | 17,103,253) |
| Dec 31, 2011 | 0.34 | = | 4,984,199) | ÷ | 14,782,786) |
| Dec 31, 2010 | 0.42 | = | 6,324,651) | ÷ | 14,928,104) |
| Dec 31, 2009 | 0.43 | = | 6,460,315) | ÷ | 14,936,030) |
| Dec 31, 2008 | 0.53 | = | 7,208,502) | ÷ | 13,689,848) |
| Dec 31, 2007 | 0.57 | = | 6,969,274) | ÷ | 12,229,741) |
| Dec 31, 2006 | 0.56 | = | 6,425,679) | ÷ | 11,513,608) |
| Dec 31, 2005 | 0.49 | = | 5,257,668) | ÷ | 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 total asset turnover ratio exhibits a long-term downward trajectory from 2005 to 2016, reflecting a significant decrease in the efficiency with which assets are utilized to generate revenue.
- Initial Efficiency Gains (2005–2007)
- Between 2005 and 2007, the total asset turnover improved from 0.49 to a peak of 0.57. This period was characterized by revenue growth that outpaced the rate of asset accumulation, indicating an increase in operational efficiency.
- Steady Erosion of Turnover (2008–2013)
- Starting in 2008, a consistent decline in the turnover ratio is observed, falling to 0.28 by 2013. This erosion was driven by a combination of peaking and subsequent declining revenues—which dropped from 7.2 billion in 2008 to 4.6 billion in 2013—while total assets continued to rise steadily from 13.6 billion to 16.8 billion during the same period.
- Structural Asset Expansion (2014–2016)
- A critical inflection point occurred in 2014, where total assets increased sharply from 16.8 billion to 61.9 billion. This massive expansion of the balance sheet, occurring without a corresponding increase in revenue, caused the total asset turnover to plummet to a period low of 0.07. Although the ratio saw a marginal recovery to 0.11 by 2016, efficiency levels remained substantially lower than those observed in the prior decade.
The overall trend indicates a transition from a moderately efficient asset utilization model to one characterized by a heavily expanded asset base that generates relatively low proportional revenue.
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Comparison to Competitors
Yahoo! Inc., total asset turnover, 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 | 0.11 | 1.69 | 0.46 | — | 0.87 | — | 0.68 | 1.10 | 0.44 | 0.33 | — | 0.50 | 0.52 | 0.68 | 0.46 | 0.43 |
| Dec 31, 2015 | 0.11 | 1.80 | 0.41 | — | 0.72 | — | 0.74 | 0.84 | 0.53 | 0.34 | — | 0.47 | 0.50 | 0.56 | 0.44 | 0.33 |
| Dec 31, 2014 | 0.07 | 1.78 | 0.38 | — | 0.49 | — | 0.79 | 0.87 | 0.50 | 0.42 | — | 0.40 | 0.44 | 0.48 | 0.43 | 0.22 |
| Dec 31, 2013 | 0.28 | 1.80 | 0.39 | — | 0.60 | — | 0.79 | 0.76 | 0.55 | 0.45 | — | 0.68 | 0.55 | 0.36 | 0.45 | 0.29 |
| Dec 31, 2012 | 0.29 | 1.79 | 0.44 | — | 0.58 | — | 0.88 | 0.89 | 0.61 | 0.47 | — | 0.63 | 0.54 | 0.51 | 0.42 | — |
| Dec 31, 2011 | 0.34 | 1.74 | 0.47 | — | 0.65 | — | 0.92 | 0.75 | 0.64 | 0.48 | — | — | 0.54 | — | 0.46 | — |
| Dec 31, 2010 | 0.42 | 1.80 | 0.47 | — | 0.54 | — | 0.88 | 0.66 | 0.73 | 0.44 | — | — | 0.53 | — | 0.42 | — |
| Dec 31, 2009 | 0.43 | 1.89 | 0.40 | — | 0.60 | — | 0.88 | 0.66 | 0.75 | 0.49 | — | — | 0.73 | — | 0.46 | — |
| Dec 31, 2008 | 0.53 | 2.04 | 0.61 | — | 0.62 | — | 0.95 | 0.66 | 0.83 | 0.47 | — | — | 0.69 | — | 0.49 | — |
| Dec 31, 2007 | 0.57 | 2.00 | 0.55 | — | 0.42 | — | 0.82 | 0.63 | 0.81 | 0.52 | — | — | 0.75 | — | 0.46 | — |
| Dec 31, 2006 | 0.56 | 1.94 | 0.43 | — | 0.43 | — | 0.89 | 0.85 | 0.64 | 0.50 | — | — | 0.71 | — | 0.51 | — |
| Dec 31, 2005 | 0.49 | 1.91 | 0.81 | — | 0.39 | — | 0.86 | 0.75 | 0.56 | 0.57 | — | — | 0.63 | — | 0.46 | — |
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., total asset turnover, long-term trends, comparison to sector (software & services)
| Yahoo! Inc. | Software & Services | |
|---|---|---|
| Dec 31, 2016 | 0.11 | 0.54 |
| Dec 31, 2015 | 0.11 | 0.59 |
| Dec 31, 2014 | 0.07 | 0.61 |
| Dec 31, 2013 | 0.28 | 0.66 |
| Dec 31, 2012 | 0.29 | 0.72 |
| Dec 31, 2011 | 0.34 | 0.75 |
| Dec 31, 2010 | 0.42 | 0.76 |
| Dec 31, 2009 | 0.43 | 0.79 |
| Dec 31, 2008 | 0.53 | 0.86 |
| Dec 31, 2007 | 0.57 | 0.81 |
| Dec 31, 2006 | 0.56 | 0.78 |
| Dec 31, 2005 | 0.49 | 0.77 |
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., total asset turnover, long-term trends, comparison to industry (information technology)
| Yahoo! Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2016 | 0.11 | 0.55 |
| Dec 31, 2015 | 0.11 | 0.63 |
| Dec 31, 2014 | 0.07 | 0.64 |
| Dec 31, 2013 | 0.28 | 0.66 |
| Dec 31, 2012 | 0.29 | 0.70 |
| Dec 31, 2011 | 0.34 | 0.73 |
| Dec 31, 2010 | 0.42 | 0.72 |
| Dec 31, 2009 | 0.43 | 0.69 |
| Dec 31, 2008 | 0.53 | 0.79 |
| Dec 31, 2007 | 0.57 | 0.76 |
| Dec 31, 2006 | 0.56 | 0.75 |
| Dec 31, 2005 | 0.49 | 0.76 |
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).