Yahoo! Inc. (NASDAQ:YHOO)

Gross Profit Margin

The gross profit margin exhibited a rising trend from 67.5% in 2012 to a peak of 71.89% in 2014. However, it declined significantly afterward, dropping to 58.18% in 2015 and further to 47.4% in 2016. This indicates that the company's core profitability from its primary operations weakened notably in the later years.

Operating Profit Margin

The operating profit margin showed moderate growth from 11.36% in 2012 to 12.6% in 2013, but then experienced a sharp decline to 3.1% in 2014. The margin turned negative thereafter, with a substantial deterioration to -95.58% in 2015 and a continuing negative figure of -12.48% in 2016. This pattern reflects severe operational challenges and escalating expenses beyond gross profit in the last two years.

Net Profit Margin

The net profit margin fluctuated widely over the period. After a peak of 79.12% in 2012, it decreased to 29.19% in 2013, then surged dramatically to 162.87% in 2014. This peak was followed by a drastic reversal to a negative margin of -87.74% in 2015 and a slight improvement to -4.15% in 2016. Such volatility suggests irregularities in profitability potentially due to extraordinary items, changing income tax impacts, or other non-operational factors.

Return on Equity (ROE)

The ROE declined progressively from a solid 27.1% in 2012 to 10.45% in 2013, then slightly recovered to 19.42% in 2014. It turned negative in the subsequent years, showing a loss of -15.01% in 2015 and nearly breakeven at -0.69% in 2016. This decline in ROE highlights deteriorating shareholder value and profitability from equity investments.

Return on Assets (ROA)

The ROA followed a similar trend to ROE, starting at 23.07% in 2012 and decreasing to 8.13% in 2013. A partial rebound to 12.14% occurred in 2014, followed by a negative return of -9.64% in 2015 and a marginal negative return of -0.45% in 2016. This suggests the company became less efficient in utilizing its asset base to generate earnings over time.

The financial data reveals several notable trends over the five-year period from 2012 to 2016. Revenue experienced fluctuations, with a decline from 2012 to 2014 followed by a recovery and growth in 2015 and 2016. Gross profit showed a consistent downward trend across the period, decreasing each year from 2012 through 2016. This decline in gross profit occurred despite the eventual increase in revenue in the latter years.

The gross profit margin percentage exhibits a clear downward trajectory, especially pronounced after 2014. Initially, the margin improved slightly from 67.5% in 2012 to nearly 72% in 2013 and 2014, suggesting improved cost control or product mix during these years. However, a sharp reduction occurred in 2015, with the margin dropping to 58.18%, and further reduced to 47.4% in 2016. This indicates a significant erosion in profitability relative to revenue, likely due to increased costs of goods sold or pricing pressures in the market.

Revenue Trend

Declined from approximately 4.99 billion USD in 2012 to about 4.62 billion USD in 2014, then increased to nearly 5.17 billion USD by 2016.

Gross Profit Trend

Consistently decreased from 3.37 billion USD in 2012 to 2.45 billion USD in 2016.

Gross Profit Margin Trend

Rose from 67.5% in 2012 to 71.89% in 2014, then declined sharply to 47.4% by 2016.

Interpretation

The initial margin improvement may reflect operational efficiencies or favorable cost structures. The subsequent decline suggests rising costs or deteriorating pricing power, which adversely affected profitability despite growth in revenue.

Revenue Trends

Revenue demonstrated moderate fluctuations over the five-year period. It declined from 4,986,566 thousand US dollars in 2012 to 4,680,380 thousand US dollars in 2013, followed by a slight decrease to 4,618,133 thousand US dollars in 2014. Subsequently, revenue increased to 4,968,301 thousand US dollars in 2015 and continued to grow to 5,169,135 thousand US dollars by the end of 2016, indicating a recovery and gradual growth after the initial decline.

Income (Loss) from Operations

Income from operations displayed a significant shift across the years. Initial values were positive and relatively stable with 566,368 thousand US dollars in 2012 and a slight increase to 589,926 thousand US dollars in 2013. In 2014, there was a sharp decrease to 142,942 thousand US dollars. The metric then turned sharply negative in 2015 with a considerable loss amounting to -4,748,494 thousand US dollars, followed by a reduction in the loss magnitude to -645,058 thousand US dollars in 2016. This pattern reveals a period of substantial operational challenges and losses during 2015 and 2016.

Operating Profit Margin

The operating profit margin mirrored the behavior of operational income, moving from positive margins of 11.36% in 2012 and increasing slightly to 12.6% in 2013 to a significant drop to 3.1% in 2014. In 2015, the margin declined dramatically to -95.58%, indicating severe operational inefficiencies or extraordinary losses. Although still negative, the margin improved to -12.48% in 2016, reflecting partial recovery but remaining below profitability.

Summary Insights

Overall, the company experienced a volatile financial performance characterized by an initial period of profitability followed by significant operational losses. Revenue showed a resilient pattern, with a temporary decline and eventual growth, suggesting effective revenue management or market conditions improving. However, the sharp deterioration in income from operations and operating profit margin in 2015 indicates substantial operational or extraordinary expenses that negatively impacted profitability. Although some recovery signs appeared in 2016, profitability remained elusive, highlighting the need for continued focus on operational efficiency and cost control.

Revenue Trends

The revenue figures demonstrate relative stability over the examined five-year period, with amounts fluctuating between approximately $4.6 billion and $5.2 billion. After a decline from about $4.99 billion in 2012 to $4.61 billion in 2014, revenue showed a gradual increase, reaching approximately $5.17 billion by the end of 2016. This suggests a moderate recovery and stabilization in sales or service income after a period of decline.

Net Income (Loss) Patterns

Net income attributable to the company exhibited significant volatility during the period. Beginning with a strong profit of approximately $3.95 billion in 2012, net income sharply decreased to about $1.37 billion in 2013, then rebounded substantially to $7.52 billion in 2014. However, this was followed by a dramatic downturn into losses: a net loss of approximately $4.36 billion in 2015 and a smaller net loss of $214 million in 2016. The fluctuation suggests considerable irregularities in earnings, potentially due to extraordinary items or operational challenges occurring after 2014.

Net Profit Margin Analysis

The net profit margin mirrored the net income trends closely, exhibiting extreme variability. It started at a very high margin of 79.12% in 2012, dropped to 29.19% in 2013, and then surged to an unusually high 162.87% in 2014, which is an outlier likely indicating exceptional income relative to revenue that year. Subsequently, there was a sharp reversal as the margin turned negative, standing at -87.74% in 2015 and improving marginally to -4.15% in 2016. These negative margins align with the reported losses and suggest challenging profitability periods following 2014.

Summary of Financial Health Over Time

Overall, the financial data indicate significant fluctuations affecting profitability despite relatively steady revenues. The year 2014 was marked by exceptional profitability, whereas the following years showed deterioration in net income and net profit margin, indicating operational or non-recurring issues impacting financial performance adversely. The company faced a challenging environment with losses in the last two years of the period, though there was an indication of reduced loss magnitude by the end of 2016.

Net Income (Loss) Attributable to Yahoo! Inc.

The net income showed significant volatility over the observed period. In 2012, the company posted a substantial profit of approximately 3.95 billion USD, followed by a sharp decline to around 1.37 billion USD in 2013. The net income rebounded remarkably in 2014, reaching about 7.52 billion USD, which represents the peak in the period under review. However, 2015 witnessed a dramatic downturn resulting in a net loss of approximately 4.36 billion USD, followed by a reduced loss of about 0.21 billion USD in 2016, signaling some recovery efforts but remaining in negative territory.

Total Yahoo! Inc. Stockholders' Equity

The stockholders’ equity showed a fluctuating but overall increasing trend. Starting at approximately 14.56 billion USD in 2012, equity slightly decreased to around 13.07 billion USD in 2013. A notable surge occurred in 2014 when equity rose substantially to approximately 38.74 billion USD. This was followed by a decline in 2015 to about 29.04 billion USD, with a modest recovery to roughly 31.05 billion USD in 2016. Despite fluctuations, the equity level remained elevated compared to the beginning of the period.

Return on Equity (ROE)

The ROE trend mirrored the net income pattern, indicating corresponding profitability changes relative to equity. ROE started high at 27.1% in 2012, then decreased sharply to 10.45% in 2013. It improved again in 2014 to 19.42%, consistent with increased net income. However, the ratio turned negative in 2015 at -15.01%, reflecting losses, and improved slightly in 2016 to -0.69%, suggesting a marginal reduction in negative returns but continued unprofitability.

Overall, the data illustrates a period of considerable financial instability characterized by large fluctuations in net income and returns relative to equity. The company experienced peak profitability in 2014, followed by significant losses in subsequent years. Stockholders’ equity, while volatile, maintained elevated levels, indicating substantial capitalization despite earnings difficulties. ROE correspondingly declined with earnings volatility, underscoring challenges in generating returns for shareholders during the latter part of the period.

The financial performance over the five-year period demonstrates considerable volatility, particularly in net income attributable to the company. Initially, net income was strong in 2012, with a figure of approximately 3.9 billion US dollars. However, this value experienced a significant decline in 2013 to about 1.37 billion US dollars, followed by a remarkable rebound in 2014 reaching approximately 7.52 billion US dollars. Subsequent years saw net income turn negative, with losses amounting to roughly 4.36 billion in 2015 and continuing to shrink losses to 214 million in 2016.

Total assets displayed variability but did not follow the same pattern as profitability. Assets hovered around 17 billion US dollars in 2012 and 2013, surged dramatically to over 61.96 billion in 2014, before declining to 45.2 billion in 2015 and slightly increasing to 48.1 billion in 2016. This sharp increase in 2014 suggests a significant acquisition, investment, or asset revaluation during that year, followed by some asset disposition or write-down in the subsequent years.

The Return on Assets (ROA) metric aligns with the net income trend, indicating profitability relative to assets. ROA was healthy at 23.07% in 2012, dropped to 8.13% in 2013, then improved moderately to 12.14% in 2014. In 2015, ROA turned negative at -9.64%, corresponding with the net loss reported that year. The downward trend persisted but less severely in 2016, with ROA at -0.45%, reflecting a near breakeven operational performance relative to asset base.

Net Income (Loss)

Starting high, experiencing a sharp fall, rebounding strongly, then sharply declining into losses in the last two recorded years.

Total Assets

Relatively stable until 2013, followed by a substantial spike in 2014, then a decline and stabilization in 2015 and 2016, suggesting significant asset changes likely tied to business activities such as acquisitions or divestitures.

Return on Assets (ROA)

Reflects profitability trends with an initially high return, a decline, a moderate recovery, and finally turning negative in the last two years, pointing to operational challenges impacting asset utilization efficiency.

Overall, the company experienced notable fluctuations in profitability and asset base throughout the period, with 2014 standing out as an exceptional year in terms of net income and asset growth. The negative profitability in 2015 and 2016, despite substantial assets, indicates financial and operational difficulties requiring further management attention.