Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Yahoo! Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
- Gross Profit Margin
- The gross profit margin showed an increasing trend from March 2013, rising from approximately 68% to a peak near 72% by the end of 2013 and early 2014. However, from early 2015 onwards, the margin exhibited a consistent decline, falling sharply from around 69% in the first quarter of 2015 to about 45% by the first quarter of 2017. This indicates a reduction in the company’s cost efficiency or possibly increased cost of goods sold over the observed periods.
- Operating Profit Margin
- The operating profit margin initially displayed moderate fluctuations, starting near 12% in early 2013 and maintaining positive values, though slightly declining to around 3% by late 2014. Starting in 2015, the margin deteriorated dramatically, turning negative and reaching extreme negative values below -95% in the latter part of 2015 and throughout 2016. By early 2017, there was some improvement but margins remained negative near -10%. This reflects significant operational challenges and possible extraordinary losses impacting profitability at the operating level during this period.
- Net Profit Margin
- The net profit margin showed considerable volatility. It started at very high levels in 2013 and early 2014, occasionally exceeding 80%, with remarkable spikes above 160% by late 2014. However, from 2015 onward, the margin declined steadily, eventually becoming negative in 2015's final quarter and deepening further through 2016. By early 2017, the margin had improved slightly but remained close to zero and negative, signaling challenges in maintaining net profitability and possibly reflecting irregular income or expense items.
- Return on Equity (ROE)
- ROE decreased from solid double-digit figures near 29-30% in 2013 to around 20% by late 2014. In 2015, it collapsed sharply, with negative values becoming predominant throughout 2016, reflecting significant declines in profitability relative to shareholder equity. In early 2017, ROE values showed marginal improvement but remained near zero, suggesting a loss of value creation for equity holders during the latter periods.
- Return on Assets (ROA)
- ROA followed a trend similar to ROE. It started strong at approximately 24-26% in 2013, dipped slightly but remained positive until 2014, then plunged into negative territory from late 2015 onwards. By 2016 and early 2017, the ROA was nearly zero or negative, indicating poor asset utilization and reduced overall efficiency in generating profits from asset base.
Return on Sales
Return on Investment
Gross Profit Margin
Yahoo! Inc., gross profit margin calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Gross profit | 576,994) | 698,523) | 602,248) | 572,668) | 576,802) | 686,284) | 699,598) | 747,103) | 757,568) | 917,485) | 827,140) | 769,217) | 805,977) | 926,295) | 808,746) | 799,666) | 796,293) | ||||||
| Revenue | 1,327,270) | 1,469,140) | 1,305,206) | 1,307,637) | 1,087,152) | 1,273,393) | 1,225,673) | 1,243,265) | 1,225,970) | 1,253,072) | 1,148,140) | 1,084,191) | 1,132,730) | 1,265,795) | 1,138,973) | 1,135,244) | 1,140,368) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | 45.30% | 47.40% | 49.02% | 51.81% | 56.11% | 58.18% | 63.09% | 66.71% | 69.44% | 71.89% | 71.88% | 71.62% | 71.49% | 71.17% | 70.13% | 69.18% | 68.07% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
Gross profit margin = 100
× (Gross profitQ1 2017
+ Gross profitQ4 2016
+ Gross profitQ3 2016
+ Gross profitQ2 2016)
÷ (RevenueQ1 2017
+ RevenueQ4 2016
+ RevenueQ3 2016
+ RevenueQ2 2016)
= 100 × (576,994 + 698,523 + 602,248 + 572,668)
÷ (1,327,270 + 1,469,140 + 1,305,206 + 1,307,637)
= 45.30%
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue figures exhibit a generally fluctuating pattern over the analyzed periods. Initially, revenue showed slight variability in 2013, beginning around 1,140 million USD and peaking at approximately 1,265 million USD by the end of that year. Thereafter, revenues experienced moderate oscillations with values hovering between roughly 1,130 million and 1,270 million USD during 2014 and 2015. Notably, there is a pronounced increase in the last quarters of 2016 and the first quarter of 2017, reaching a peak of approximately 1,469 million USD before a slight decline to nearly 1,327 million USD.
- Gross Profit Trends
- Gross profit followed a pattern somewhat similar to revenue but with more marked fluctuations. In 2013, gross profit was generally stable, ranging around 796 million to 926 million USD, with the highest point at the final quarter. In 2014 and 2015, gross profit experienced a declining tendency, dropping from over 900 million USD to below 700 million USD by the end of 2015. During 2016 and into early 2017, gross profit remained volatile but on a declining trajectory overall, falling to approximately 577 million USD by the first quarter of 2017.
- Gross Profit Margin Analysis
- The gross profit margin displayed a clear downward trend throughout the period. Starting at approximately 68% in early 2013, it peaked just over 71% in late 2013 and maintained a relatively high range near 71-72% throughout 2014. However, from 2015 onwards, the margin steadily declined, falling to around 45% by the first quarter of 2017. This represents a significant decrease in profitability relative to revenue, indicating increasing cost pressures or reduced efficiency in generating profit from sales despite fluctuating revenue levels.
- Overall Interpretation
- The data indicates that while revenue maintained an overall stable or slightly increasing trend with a peak at the start of 2017, gross profit and especially gross profit margin have deteriorated significantly over the same period. This suggests that the company faced rising costs or other adverse factors impacting its profitability. The declining gross profit margin is a key signal of worsening cost control or pricing pressures, which may require investigation and strategic action to restore operational efficiency and profitability.
Operating Profit Margin
Yahoo! Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Income (loss) from operations | (58,747) | 64,151) | (52,319) | (489,676) | (167,214) | (4,530,034) | (86,312) | (44,794) | (87,354) | 32,154) | 42,172) | 38,437) | 30,179) | 174,218) | 92,759) | 136,979) | 185,970) | ||||||
| Revenue | 1,327,270) | 1,469,140) | 1,305,206) | 1,307,637) | 1,087,152) | 1,273,393) | 1,225,673) | 1,243,265) | 1,225,970) | 1,253,072) | 1,148,140) | 1,084,191) | 1,132,730) | 1,265,795) | 1,138,973) | 1,135,244) | 1,140,368) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | -9.92% | -12.48% | -105.35% | -107.75% | -99.98% | -95.58% | -3.77% | -1.19% | 0.54% | 3.10% | 6.15% | 7.26% | 9.29% | 12.60% | 12.72% | 13.79% | 11.88% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ1 2017
+ Income (loss) from operationsQ4 2016
+ Income (loss) from operationsQ3 2016
+ Income (loss) from operationsQ2 2016)
÷ (RevenueQ1 2017
+ RevenueQ4 2016
+ RevenueQ3 2016
+ RevenueQ2 2016)
= 100 × (-58,747 + 64,151 + -52,319 + -489,676)
÷ (1,327,270 + 1,469,140 + 1,305,206 + 1,307,637)
= -9.92%
2 Click competitor name to see calculations.
The financial data reveals several notable trends and fluctuations in key performance indicators over the analyzed periods.
- Revenue
- Revenue remained relatively stable between early 2013 and late 2015, fluctuating around the range of approximately 1.13 to 1.27 billion US dollars. There was a slight decline observed in the first quarter of 2016, followed by a significant rebound in the subsequent quarters. From mid-2016 to early 2017, revenue displayed an overall upward trend, reaching a peak of nearly 1.47 billion US dollars before slightly declining again by March 2017.
- Income (loss) from operations
- Operating income exhibited considerable volatility across the periods. Initially, the company reported healthy positive operating income figures throughout 2013, peaking above 180 million US dollars and then tapering to values around 30 to 42 million US dollars by late 2014. Beginning in 2015, the operating income deteriorated sharply, turning negative, with a pronounced loss recorded at the end of 2015 amounting to over 4.5 billion US dollars. Although there was some recovery in early 2016, losses persisted for most periods until a positive income was regained in the last quarter of 2016. However, this improvement was not sustained, with operations again resulting in a loss by the first quarter of 2017.
- Operating profit margin (%)
- The operating profit margin mirrored the trajectory of operating income, starting at a healthy double-digit percentage in 2013, above 11%, and gradually declining through 2014. The margin dropped below 10% in early 2014 and decreased further to marginal or negative values during 2015. The margin experienced an abrupt and significant downturn at the end of 2015, nearly reaching -96%, reflecting the extraordinary losses in operating income. This extremely negative margin persisted through 2016, generally worse than -100%, indicating operating losses exceeding revenue. Some recovery occurred late in 2016 with the margin improving to approximately -12%, but it remained negative into early 2017.
In summary, the company's financial performance demonstrated stable revenue with periodic fluctuations but faced severe challenges in maintaining operational profitability particularly after 2014. The sharp and extraordinary operating loss at the end of 2015 greatly impacted profitability metrics, from which the company showed partial but inconsistent recovery. The data suggests underlying issues affecting operating efficiency or one-time extraordinary charges impacting results, warranting further investigation into operational and non-operational factors influencing these outcomes.
Net Profit Margin
Yahoo! Inc., net profit margin calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income (loss) attributable to Yahoo! Inc. | 99,434) | 161,998) | 162,826) | (439,913) | (99,232) | (4,434,987) | 76,261) | (21,554) | 21,198) | 166,344) | 6,774,102) | 269,707) | 311,578) | 348,190) | 296,656) | 331,150) | 390,285) | ||||||
| Revenue | 1,327,270) | 1,469,140) | 1,305,206) | 1,307,637) | 1,087,152) | 1,273,393) | 1,225,673) | 1,243,265) | 1,225,970) | 1,253,072) | 1,148,140) | 1,084,191) | 1,132,730) | 1,265,795) | 1,138,973) | 1,135,244) | 1,140,368) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | -0.29% | -4.15% | -96.74% | -100.08% | -92.75% | -87.74% | 4.90% | 142.49% | 153.49% | 162.87% | 166.35% | 26.53% | 27.55% | 29.19% | 27.11% | 86.13% | 82.55% | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
Net profit margin = 100
× (Net income (loss) attributable to Yahoo! Inc.Q1 2017
+ Net income (loss) attributable to Yahoo! Inc.Q4 2016
+ Net income (loss) attributable to Yahoo! Inc.Q3 2016
+ Net income (loss) attributable to Yahoo! Inc.Q2 2016)
÷ (RevenueQ1 2017
+ RevenueQ4 2016
+ RevenueQ3 2016
+ RevenueQ2 2016)
= 100 × (99,434 + 161,998 + 162,826 + -439,913)
÷ (1,327,270 + 1,469,140 + 1,305,206 + 1,307,637)
= -0.29%
2 Click competitor name to see calculations.
- Revenue Trend
- The revenue figures exhibit a generally stable pattern with moderate fluctuations over the quarters observed. From March 2013 through March 2017, the revenue values range between approximately 1.08 billion and 1.47 billion US dollars. Notable increments occur in the later quarters of 2016, with the highest revenue recorded in December 2016 at roughly 1.47 billion US dollars. Overall, revenue maintains a consistent level without drastic volatility.
- Net Income Performance
- Net income attributable to the company shows considerable volatility. Starting at around 390 million US dollars in the first quarter of 2013, there is a significant peak in the third quarter of 2014, surging to over 6.7 billion US dollars, which is an outlier relative to other quarters. Following this spike, net income declines sharply, including periods of negative net income, particularly notable at the end of 2015 and during several quarters in 2016. By early 2017, net income recovers to positive territory but remains modest compared to the peak.
- Net Profit Margin Analysis
- The net profit margin percentages mirror the irregularities observed in net income. Initially, margins remain high, exceeding 80% in early periods, likely influenced by one-time gains. A pronounced peak occurs in the third quarter of 2014, with margin values exceeding 160%, reinforcing the presence of extraordinary profit in that period. Subsequently, margins fall sharply and turn negative in late 2015 and much of 2016, indicating losses despite relatively stable revenue. By early 2017, profit margins approach zero, reflecting a near break-even state.
- Insights and Observations
- The data indicates the presence of exceptional events or adjustments impacting profitability in certain quarters, notably in late 2014 and throughout 2016, resulting in sharp swings in net income and profit margin. Despite these fluctuations, revenue remains comparatively steady over the same timeframe. The company's profitability demonstrates inconsistency, suggesting challenges in sustaining earnings or the occurrence of non-recurring items affecting reported net income. The recovery in net income and margins near the end of the period suggests some stabilization, but profits remain subdued relative to the earlier peaks.
Return on Equity (ROE)
Yahoo! Inc., ROE calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income (loss) attributable to Yahoo! Inc. | 99,434) | 161,998) | 162,826) | (439,913) | (99,232) | (4,434,987) | 76,261) | (21,554) | 21,198) | 166,344) | 6,774,102) | 269,707) | 311,578) | 348,190) | 296,656) | 331,150) | 390,285) | ||||||
| Total Yahoo! Inc. stockholders’ equity | 35,435,717) | 31,049,283) | 34,836,272) | 28,363,894) | 28,478,347) | 29,043,537) | 28,245,950) | 33,532,602) | 33,658,896) | 38,741,837) | 36,713,567) | 12,691,988) | 12,905,183) | 13,074,909) | 12,494,111) | 13,808,864) | 14,139,916) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | -0.04% | -0.69% | -13.81% | -17.27% | -15.73% | -15.01% | 0.86% | 20.70% | 21.48% | 19.42% | 20.98% | 9.66% | 9.98% | 10.45% | 10.33% | 30.08% | 28.64% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
ROE = 100
× (Net income (loss) attributable to Yahoo! Inc.Q1 2017
+ Net income (loss) attributable to Yahoo! Inc.Q4 2016
+ Net income (loss) attributable to Yahoo! Inc.Q3 2016
+ Net income (loss) attributable to Yahoo! Inc.Q2 2016)
÷ Total Yahoo! Inc. stockholders’ equity
= 100 × (99,434 + 161,998 + 162,826 + -439,913)
÷ 35,435,717 = -0.04%
2 Click competitor name to see calculations.
- Net Income (Loss) Trends
- The net income attributable to the company showed significant fluctuations over the reported periods. From early 2013 through mid-2014, the values were generally positive, with a notable peak in September 2014 reaching approximately 6.77 million USD. However, after this spike, net income decreased sharply and turned negative multiple times, particularly in late 2015 and early 2016, with the large loss in March 2016 of approximately 4.44 million USD. Subsequent quarters saw some recovery, with net income returning to positive figures in late 2016 and early 2017, although the amounts remained modest compared to earlier peaks.
- Total Stockholders' Equity Patterns
- The stockholders’ equity levels demonstrated a relatively stable trend with some variability. Starting around 14.14 billion USD in early 2013, equity levels showed a decrease through early 2014, followed by a substantial increase in late 2014, peaking near 38.74 billion USD at the end of 2014. Thereafter, equity experienced declines and moderate fluctuations throughout 2015 and 2016, with values generally residing between approximately 28 billion and 35 billion USD. By March 2017, equity returned to a higher level, around 35.44 billion USD.
- Return on Equity (ROE) Analysis
- ROE values displayed volatility and a declining trend over the examined periods. Early 2013 exhibited strong positive returns, exceeding 28%, followed by a decrease to around 10% in late 2013 and early 2014. A notable increase occurred in late 2014, with ROE approaching 21%. However, from late 2015 onward, ROE turned negative, reflecting the losses recorded in the net income data. The negative returns persisted through 2016, reaching a low of approximately -17%, before slightly improving to near zero or marginally negative levels by early 2017.
- Overall Insights
- The company experienced considerable earnings volatility, including a significant one-time gain in late 2014 and substantial losses around 2015 to early 2016. Stockholders’ equity showed resilience despite income fluctuations, suggesting capital injections or asset revaluations contributed to equity changes. The declining and negative ROE during the latter periods highlights the impact of reduced profitability and losses on shareholder returns. Recent quarters indicate some stabilization in profitability metrics, though the values remain subdued relative to earlier periods.
Return on Assets (ROA)
Yahoo! Inc., ROA calculation (quarterly data)
| Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | Mar 31, 2013 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income (loss) attributable to Yahoo! Inc. | 99,434) | 161,998) | 162,826) | (439,913) | (99,232) | (4,434,987) | 76,261) | (21,554) | 21,198) | 166,344) | 6,774,102) | 269,707) | 311,578) | 348,190) | 296,656) | 331,150) | 390,285) | ||||||
| Total assets | 55,368,726) | 48,083,079) | 54,671,626) | 44,214,295) | 44,158,229) | 45,203,966) | 41,134,999) | 50,191,816) | 50,491,706) | 61,960,344) | 57,297,599) | 16,456,813) | 16,592,915) | 16,804,959) | 14,905,749) | 16,226,423) | 16,490,979) | ||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | -0.03% | -0.45% | -8.80% | -11.08% | -10.14% | -9.64% | 0.59% | 13.83% | 14.32% | 12.14% | 13.44% | 7.45% | 7.76% | 8.13% | 8.66% | 25.60% | 24.56% | ||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Accenture PLC | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Adobe Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| AppLovin Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Cadence Design Systems Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| CrowdStrike Holdings 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. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31).
1 Q1 2017 Calculation
ROA = 100
× (Net income (loss) attributable to Yahoo! Inc.Q1 2017
+ Net income (loss) attributable to Yahoo! Inc.Q4 2016
+ Net income (loss) attributable to Yahoo! Inc.Q3 2016
+ Net income (loss) attributable to Yahoo! Inc.Q2 2016)
÷ Total assets
= 100 × (99,434 + 161,998 + 162,826 + -439,913)
÷ 55,368,726 = -0.03%
2 Click competitor name to see calculations.
- Net Income (Loss) Trend
- The net income attributable to the company demonstrated considerable volatility over the observed period. From early 2013 through mid-2014, the company generally reported positive net income figures with notable peaks in the third quarter of 2014, reaching the highest value observed in the dataset. However, starting in late 2015, significant fluctuations occurred with periods of both losses and recoveries. The fourth quarter of 2015 showed a substantial net loss, followed by negative results in most quarters of 2016. There was a partial recovery toward positive net income again in late 2016 and early 2017, although these figures remained modest compared to prior peaks.
- Total Assets Trend
- Total assets experienced wide-ranging changes throughout the timeframe. The asset base was relatively stable between 2013 and early 2014, with a substantial increase occurring in the middle of 2014, reaching a peak by the end of that year. This peak was followed by a decline extending through 2015, returning to levels closer to the beginning of the series. A rebound in total assets occurred in late 2016 and early 2017, with figures rising again but remaining below the mid-2014 peak.
- Return on Assets (ROA) Analysis
- The return on assets showed a declining trend over the periods under review. Starting from relatively high levels in early 2013, the ROA dropped significantly by late 2013 but maintained positive values through mid-2015. Beginning in the last quarter of 2015, ROA shifted into negative territory and worsened throughout 2016, suggesting diminished efficiency in asset utilization. Early 2017 figures showed a near-zero ROA, indicating minimal returns relative to the asset base.
- Overall Observations
- The data indicates a challenging financial environment with marked volatility in profitability and asset values. The substantial one-time increase in total assets in 2014 coincided with an extraordinary spike in net income during the same period, suggesting a possible asset acquisition or significant transaction. Subsequent quarters reflect a struggle to maintain consistent profitability and asset management effectiveness. The negative ROA values in 2016 highlight periods where the company incurred losses relative to its asset holdings, emphasizing operational and financial difficulties. While early 2017 indicates some improvement, the metrics remain subdued compared to earlier years.