Yahoo! Inc. operates in 3 segments: Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific.
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- Income Statement
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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Segment Profit Margin
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Americas | |||||
Europe, Middle East, and Africa (EMEA) | |||||
Asia Pacific |
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).
- Americas Segment Profit Margin
- The profit margin in the Americas segment exhibited a strong performance in the initial period, reaching above 94% in 2012 and 2013. However, a notable decline is observed starting in 2014, with a sharp decrease in 2015 to 80.17%, followed by a further drop to 64.93% in 2016. This downward trend indicates a significant reduction in profitability in this region over the examined five-year period.
- Europe, Middle East, and Africa (EMEA) Segment Profit Margin
- The EMEA segment displayed a positive trend from 2012 to 2014, with profit margins increasing from 75.8% to a peak of 90.16%. Nonetheless, similar to the Americas segment, this was followed by a decline in both 2015 and 2016, where margins decreased to 83.33% and then further to 63.66%. The pattern suggests a weakened profitability position in the latter years, despite strong earlier performance.
- Asia Pacific Segment Profit Margin
- In contrast to the other two segments, the Asia Pacific segment showed consistent strength and improvement through the majority of the timeline. Margins rose steadily from 78.9% in 2012 up to a high point of 98.05% in 2014. Though a slight reduction occurred in the final two years, with margins of 95.14% in 2015 and 92.81% in 2016, the segment maintained overall robust profitability compared to the Americas and EMEA regions.
- Overall Insights
- The profit margin trends reveal that the Americas and EMEA segments experienced peaked profitability during the early to mid-period, followed by significant declines in the final two years. Conversely, the Asia Pacific segment remained comparatively stable and highly profitable throughout the duration. These patterns may indicate varying regional market challenges or operational efficiencies impacting profitability differently across geographies during this timeframe.
Segment Profit Margin: Americas
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenue ex-TAC | |||||
Revenue | |||||
Segment Profitability Ratio | |||||
Segment profit margin1 |
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).
1 2016 Calculation
Segment profit margin = 100 × Revenue ex-TAC ÷ Revenue
= 100 × ÷ =
The financial data for the Americas segment over the five-year period ending December 31, 2016, reflects notable trends in revenue and profitability.
- Revenue excluding Traffic Acquisition Costs (TAC)
- The revenue excluding TAC remained relatively stable from 2012 to 2014, exhibiting a slight increase from approximately 3.28 billion to 3.35 billion US dollars. However, a decline is observed starting in 2015, with the figure dropping to about 3.19 billion and further decreasing substantially to approximately 2.71 billion in 2016. This downward trend signals a contraction in net revenue after accounting for traffic acquisition expenses.
- Total Revenue
- Total revenue shows a consistent year-on-year increase throughout the period, starting at roughly 3.46 billion US dollars in 2012 and rising steadily to reach about 4.17 billion by 2016. The year 2015 marks a noticeable acceleration in growth, with revenue increasing by approximately 13%, followed by continued growth of around 5% the subsequent year.
- Segment Profit Margin
- The segment profit margin remains high initially, with percentages above 94% in the years 2012 through 2014, suggesting strong profitability relative to revenue. However, from 2015 onward, a significant decrease in margin is evident, dropping to 80.17% and declining further to 64.93% in 2016. This marked reduction indicates increased costs or reduced efficiency impacting profitability despite growing total revenues.
In summary, total revenues have consistently expanded over the years, particularly after 2014, while revenue excluding TAC has been contracting since 2014. Concurrently, the segment profit margin has experienced a substantial decline starting in 2015, pointing toward rising expenses or changed cost structure adversely affecting profitability. The divergence between total revenue growth and profitability suggests stronger reliance on activities incurring higher TAC or other costs, potentially requiring further strategic evaluation.
Segment Profit Margin: Europe, Middle East, and Africa (EMEA)
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenue ex-TAC | |||||
Revenue | |||||
Segment Profitability Ratio | |||||
Segment profit margin1 |
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).
1 2016 Calculation
Segment profit margin = 100 × Revenue ex-TAC ÷ Revenue
= 100 × ÷ =
- Revenue ex-TAC
-
Revenue excluding traffic acquisition costs demonstrated a steady decline over the five-year period. Starting at approximately $357.8 million in 2012, the figure gradually diminished each year, reaching around $253.2 million by the end of 2016. This trend indicates a consistent reduction in core revenue components before accounting for traffic-related expenses.
- Revenue
-
Total revenue exhibited a somewhat volatile pattern. Initially, revenue decreased from about $472.1 million in 2012 to approximately $385.2 million in 2013, followed by a slight further decrease to nearly $374.8 million in 2014 and a more significant drop to $343.6 million in 2015. Notably, revenue rebounded in 2016 to $397.8 million, reversing the prior downward trend. This suggests some recovery in gross revenue generating activities during the final year.
- Segment profit margin
-
The segment profit margin fluctuated over the analysis period. It started at 75.8% in 2012 and increased markedly to a peak of 90.16% in 2014, reflecting improved profitability efficiency in those years. Subsequently, the margin decreased to 83.33% in 2015 and further declined to 63.66% by 2016, indicating a significant reduction in profitability despite the partial recovery in total revenue. This downward trend may signal increasing costs or decreasing operational efficiency in the segment.
Segment Profit Margin: Asia Pacific
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenue ex-TAC | |||||
Revenue | |||||
Segment Profitability Ratio | |||||
Segment profit margin1 |
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).
1 2016 Calculation
Segment profit margin = 100 × Revenue ex-TAC ÷ Revenue
= 100 × ÷ =
- Revenue ex-TAC
- The revenue excluding traffic acquisition costs demonstrates a consistent decline over the five-year period. Starting at 830.7 million USD in 2012, it decreased annually, reaching 555.5 million USD by the end of 2016. This represents a reduction of approximately 33% over the span, indicating a recurring downward trend in this specific revenue metric.
- Revenue
- Total revenue also follows a declining pattern similar to revenue ex-TAC. It decreased from about 1.05 billion USD in 2012 to nearly 598.5 million USD in 2016. The most significant drop occurred between 2012 and 2013, with subsequent years showing a steady but less steep reduction. Overall, the revenue fell by roughly 43% over the five years.
- Segment Profit Margin
- The segment profit margin displays a generally high and positive figure, remaining above 78% throughout the years. It rose sharply from 78.9% in 2012 to a peak of 98.05% in 2014, indicating improved profitability relative to revenue during that period. However, following the peak, the margin experienced a slight downward adjustment, settling near 92.81% in 2016. Despite this slight decrease from the peak, the margin stayed robust and reflects strong profitability within this segment.
- Overall Insights
- Both total revenue and revenue ex-TAC exhibit a clear declining trend across the analyzed years, pointing to challenges in sustaining or growing the segment's top-line business. In contrast, the segment profit margin remains high, suggesting efficient cost management or operational effectiveness despite shrinking revenues. The peak profit margin in 2014 suggests an optimal period of profitability, although margins slightly decreased thereafter while still maintaining strong levels. These patterns indicate that while the segment faced revenue contraction, profitability was preserved, potentially through cost control or shifts in business dynamics.
Segment Return on Assets (Segment ROA)
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Americas | |||||
Europe, Middle East, and Africa (EMEA) | |||||
Asia Pacific |
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).
- Americas Segment ROA
- The return on assets (ROA) for the Americas segment exhibited moderate fluctuations over the analyzed five-year period. Starting at 220.8% at the end of 2012, the ROA increased to a peak of 246.47% in 2013. This was followed by a slight decrease in 2014 and 2015, reaching a low of 220.12%. In 2016, the ROA improved again to 241.24%, indicating a partial recovery. Overall, the Americas segment maintained a relatively high ROA with some short-term volatility but no clear long-term upward or downward trend.
- Europe, Middle East, and Africa (EMEA) Segment ROA
- The EMEA segment demonstrated a strong upward trend in ROA from 2012 through 2014, starting at 602.25% and reaching a substantial peak of 975.4% in 2014. This significant growth suggests enhanced asset efficiency or profitability in this region during the period. Following the peak, the ROA decreased in 2015 to 843.73%, indicating some decline in performance, but rebounded slightly in 2016 to 892.88%. Despite the post-2014 decrease, the ROA remained well above the initial 2012 value, reflecting sustained strong performance overall.
- Asia Pacific Segment ROA
- The Asia Pacific segment's ROA followed a pattern closely resembling that of the EMEA region, starting at 587.76% in 2012 and increasing consistently to a peak of 1021.26% in 2014. This consistent growth suggests a marked improvement in asset profitability or utilization. After the 2014 high, the ROA declined to 947.77% in 2015 and remained relatively stable at 951.76% in 2016. Despite this decrease from the peak, the segment's ROA notably exceeded the 2012 figure throughout the later years, indicating strong and sustained asset performance.
- Summary
- Across the three reportable segments, the EMEA and Asia Pacific regions demonstrated significant growth in ROA from 2012 to 2014, reaching peaks in 2014 before experiencing moderate declines yet maintaining high levels through 2016. The Americas segment showed more fluctuation without a pronounced trend, maintaining a high but relatively stable ROA around the low- to mid-200% range. These patterns may reflect regional differences in market conditions, operational efficiency, or strategic initiatives affecting asset profitability over time.
Segment ROA: Americas
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenue ex-TAC | |||||
Property and equipment, net | |||||
Segment Profitability Ratio | |||||
Segment ROA1 |
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).
1 2016 Calculation
Segment ROA = 100 × Revenue ex-TAC ÷ Property and equipment, net
= 100 × ÷ =
- Revenue ex-TAC
- The revenue excluding traffic acquisition costs shows a fluctuating trend over the five-year period. Starting at approximately 3.28 billion US dollars in 2012, it slightly increased in 2013 and 2014, reaching a peak of around 3.35 billion. However, subsequent years exhibit a decline, with revenue falling to approximately 3.19 billion in 2015 and further declining to about 2.71 billion in 2016. This downward movement after 2014 suggests potential challenges in revenue generation or market conditions impacting the segment.
- Property and equipment, net
- The net value of property and equipment displays a general decreasing trend across the analyzed years. Beginning at close to 1.49 billion in 2012, the value decreased to about 1.35 billion in 2013, experienced a slight increase in 2014 and 2015 reaching approximately 1.45 billion, but significantly dropped in 2016 to approximately 1.12 billion. This pattern may indicate reduced investments, asset disposals, or depreciation impacting the asset base.
- Segment ROA (Return on Assets)
- The segment's return on assets remains robust and relatively high throughout the period. It started at 220.8% in 2012 and increased to a peak of 246.47% in 2013. Although there was a minor decline to 242.25% in 2014 and a more pronounced dip to 220.12% in 2015, the ROA rose again to 241.24% in 2016. Despite fluctuations, the consistently elevated ROA indicates effective utilization of assets to generate returns within the segment.
Segment ROA: Europe, Middle East, and Africa (EMEA)
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenue ex-TAC | |||||
Property and equipment, net | |||||
Segment Profitability Ratio | |||||
Segment ROA1 |
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).
1 2016 Calculation
Segment ROA = 100 × Revenue ex-TAC ÷ Property and equipment, net
= 100 × ÷ =
- Revenue ex-TAC
- The revenue excluding traffic acquisition costs exhibited a consistent declining trend over the five-year period. It decreased from 357,831 thousand US dollars in 2012 to 253,221 thousand US dollars by the end of 2016. This represents a considerable reduction, signaling potential challenges in maintaining sales or pricing power within the Europe, Middle East, and Africa segment during this timeframe.
- Property and equipment, net
- The net value of property and equipment also showed a downward trend throughout the years analyzed. Starting at 59,416 thousand US dollars in 2012, it steadily decreased to 28,360 thousand US dollars by 2016. This reduction may reflect asset disposals, depreciation exceeding capital expenditures, or strategic shifts in asset utilization.
- Segment Return on Assets (ROA)
- Contrary to the decline in revenue and net property and equipment, the segment's ROA demonstrated a strong positive trend with some fluctuations. Initially, the ROA was 602.25% in 2012, increasing substantially to a peak of 975.4% in 2014. Although there was a decline to 843.73% in 2015, it rebounded again to 892.88% in 2016. These high values may indicate efficient use of assets to generate profit within this segment, possibly owing to decreasing asset base or improved operational efficiency despite lower revenues.
Segment ROA: Asia Pacific
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenue ex-TAC | |||||
Property and equipment, net | |||||
Segment Profitability Ratio | |||||
Segment ROA1 |
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).
1 2016 Calculation
Segment ROA = 100 × Revenue ex-TAC ÷ Property and equipment, net
= 100 × ÷ =
- Revenue ex-TAC
- The revenue excluding traffic acquisition costs exhibits a consistent decline over the five-year period. Starting from approximately $830.7 million at the end of 2012, the figure decreases annually, reaching about $555.5 million by the end of 2016. This represents a reduction of roughly 33% over the period, indicating a diminishing revenue base in the Asia Pacific segment.
- Property and Equipment, Net
- The net value of property and equipment follows a downward trajectory throughout the timeframe. From a high of approximately $141.3 million in 2012, the asset base contracts steadily, decreasing to about $58.4 million by 2016. This decline suggests either sustained depreciation, asset disposals, or limited reinvestment in long-term physical assets in the region.
- Segment Return on Assets (ROA)
- The segment ROA shows a contrasting trend relative to revenue and asset base. It rises substantially from 587.76% in 2012 to peak at 1021.26% in 2014. Afterwards, it slightly declines but remains elevated at around 951.76% in 2016. This high and increasing ROA despite shrinking revenue and asset base may indicate improved operational efficiency, enhanced profitability per asset unit, or lower asset valuation impacting the ratio.
Segment Asset Turnover
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Americas | |||||
Europe, Middle East, and Africa (EMEA) | |||||
Asia Pacific |
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).
- Americas Segment Asset Turnover
- The asset turnover ratio for the Americas segment demonstrates a generally upward trajectory over the analyzed period. Starting at 2.33 in 2012, the ratio increases steadily to 2.58 in 2013 and slightly dips to 2.54 in 2014. From 2014 onward, the ratio resumes growth, reaching 2.75 in 2015 and experiencing a more significant increase to 3.72 by 2016. This pattern indicates improving asset utilization efficiency in the Americas, especially notable in the final recorded year.
- Europe, Middle East, and Africa (EMEA) Segment Asset Turnover
- The EMEA segment exhibits the highest asset turnover ratios among the three regions throughout the period. Starting at 7.95 in 2012, there is consistent growth to 8.56 in 2013 and a more pronounced rise to 10.82 in 2014. In 2015, a slight decline to 10.13 is noted, but this is followed by a strong recovery to 14.03 in 2016. Overall, the segment shows robust asset turnover performance with some volatility, culminating in a substantial efficiency improvement by the end of the period.
- Asia Pacific Segment Asset Turnover
- The Asia Pacific segment maintains relatively high asset turnover ratios similar to those in the EMEA region but with less pronounced fluctuations. From 7.45 in 2012, the ratio increases to 8.52 in 2013 and peaks at 10.42 in 2014. A slight decrease occurs in 2015, bringing the ratio down to 9.96, followed by a modest rise to 10.25 in 2016. This data suggests stable and strong asset utilization with minor variations year to year.
- Comparative Insights
- Comparing the three regions, EMEA consistently exhibits the highest asset turnover ratios, indicating the most efficient use of segment assets. The Asia Pacific region closely follows this trend but with slightly lower and more stable ratios. The Americas segment shows considerably lower ratios relative to the other two regions; however, it demonstrates meaningful growth, particularly in the last year analyzed. The upward trends in all regions suggest overall improvement in asset utilization across the company’s segments, with EMEA achieving notable gains despite minor volatility.
Segment Asset Turnover: Americas
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenue | |||||
Property and equipment, net | |||||
Segment Activity Ratio | |||||
Segment asset turnover1 |
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).
1 2016 Calculation
Segment asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
- Revenue Trends
- The revenue of the Americas segment demonstrates a consistent upward trajectory over the five-year period. Starting from approximately 3,461 million US dollars in 2012, revenue experiences slight growth each year, reaching approximately 4,173 million US dollars by 2016. The most notable increase occurs between 2014 and 2015, where revenue rises by about 4.7%, followed by a smaller growth of around 5% into 2016.
- Property and Equipment, Net
- The net value of property and equipment presents a fluctuating trend. Initially, there is a decline from about 1,485 million US dollars in 2012 to 1,348 million US dollars in 2013. This is followed by a modest recovery in 2014 and 2015, with values reaching approximately 1,449 million US dollars. However, by 2016, there is a marked reduction to about 1,123 million US dollars, indicating a significant decrease in net property and equipment compared to the earlier years.
- Segment Asset Turnover Ratio
- This ratio shows a consistently increasing pattern across the evaluated period. Beginning at 2.33 in 2012, it progresses through slight rises until 2015 and then sharply increases to 3.72 in 2016. The rising asset turnover ratio suggests improved efficiency in using assets to generate revenue, reflecting enhanced asset utilization over time.
- Overall Insights
- The data reflects steady revenue growth coupled with improved asset efficiency as evidenced by the rising asset turnover ratio. The decline in net property and equipment in 2016 contrasts with the increasing revenue and asset turnover, indicating potential strategic divestments or shifts towards less asset-intensive operations. This trend might suggest a transition towards a business model emphasizing operational efficiency and possibly a heavier focus on intangible assets or digital services.
Segment Asset Turnover: Europe, Middle East, and Africa (EMEA)
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenue | |||||
Property and equipment, net | |||||
Segment Activity Ratio | |||||
Segment asset turnover1 |
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).
1 2016 Calculation
Segment asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
The financial data for the Europe, Middle East, and Africa (EMEA) segment over the five-year period ending December 31, 2016, displays several notable trends in revenue, asset levels, and efficiency ratios.
- Revenue
- There is a clear declining trend in revenue from 2012 to 2015, starting at $472,061 thousand in 2012 and decreasing to $343,646 thousand by 2015. This drop represents a cumulative decrease of approximately 27%. However, in 2016, revenue reverses this downward trend, increasing to $397,768 thousand, which indicates a partial recovery but still remains below the 2012 level.
- Property and equipment, net
- The net value of property and equipment steadily decreases each year from $59,416 thousand in 2012 to $28,360 thousand in 2016. This continuous decline suggests ongoing asset disposals, depreciation, or a reduction in capital investment within the segment.
- Segment asset turnover
- The segment asset turnover ratio, which measures efficiency in generating revenue from assets, has generally improved across the period. Beginning at 7.95 in 2012, it rises to a peak of 14.03 in 2016. This upward trend, despite the decreasing asset base, indicates enhanced operational efficiency and better utilization of the segment's assets to generate revenue, especially notable given the revenue decline in earlier years.
Overall, the data reveal a segment facing revenue challenges in the early years with a subsequent modest rebound, alongside a shrinking asset base that contributes to improved asset turnover ratios. The increasing asset turnover highlights management's ability to extract more revenue from fewer assets, reflecting operational improvements or strategic shifts within the segment.
Segment Asset Turnover: Asia Pacific
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||
Revenue | |||||
Property and equipment, net | |||||
Segment Activity Ratio | |||||
Segment asset turnover1 |
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).
1 2016 Calculation
Segment asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
- Revenue
- The revenue for the Asia Pacific segment shows a clear downward trend over the five-year period, declining from $1,052,872 thousand in 2012 to $598,531 thousand in 2016. This represents a significant reduction of approximately 43.1%. The decline appears steady each year, with no signs of recovery or stabilization during the period.
- Property and Equipment, Net
- The net value of property and equipment also exhibits a consistent decreasing trend, dropping from $141,335 thousand in 2012 to $58,367 thousand in 2016. This decrease, totaling around 58.7%, suggests a considerable reduction in asset base or possible disposals and write-downs over the years.
- Segment Asset Turnover
- Contrary to revenue and asset values, the segment asset turnover ratio indicates an improvement in the efficiency of asset utilization. It increased from 7.45 in 2012 to 10.25 in 2016, reflecting enhanced effectiveness in generating revenue from the segment's assets despite the declining asset base and revenue.
- Overall Analysis
- The data reveals a contraction in both revenue and asset base for the Asia Pacific segment, indicating potential challenges in market conditions or strategic shifts. Nevertheless, the increasing asset turnover ratio points toward improved operational efficiency and potentially better management of the available resources to optimize revenue generation.
Revenue
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Americas | |||||
Europe, Middle East, and Africa (EMEA) | |||||
Asia Pacific | |||||
Total |
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).
- Revenue Trends by Region
-
Revenue from the Americas demonstrated a consistent upward trajectory throughout the analyzed period, increasing from approximately $3.46 billion in 2012 to about $4.17 billion in 2016. This reflects steady growth, with a notable acceleration in 2015 and 2016.
The Europe, Middle East, and Africa (EMEA) region experienced volatility in revenue. After an initial decline from $472 million in 2012 to approximately $343.6 million in 2015, the region showed recovery in 2016, rising again to nearly $398 million.
Revenue in the Asia Pacific region displayed a continuous decline over the five-year period. It decreased from about $1.05 billion in 2012 to roughly $599 million in 2016, indicating a persistent downward trend in that market.
- Total Revenue
-
Total reported segment revenue first declined from approximately $4.99 billion in 2012 to about $4.62 billion in 2014. Subsequently, it rebounded to reach approximately $5.17 billion by 2016. This overall increase in total revenue appears to be primarily driven by growth in the Americas and the rebound in EMEA revenues, offsetting the consistent declines seen in Asia Pacific.
- Insights
-
The data suggest a strong dependence on the Americas market for revenue growth, which provided a stabilizing and increasing effect on total revenue despite challenges in other regions. The gradual recovery in EMEA in the final year analyzed may indicate regional market stabilization or successful strategic initiatives during that period. Conversely, the ongoing revenue decline in the Asia Pacific area points to challenges that may require targeted attention to reverse this trend or manage its impact on the company’s global portfolio.
Revenue ex-TAC
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Americas | |||||
Europe, Middle East, and Africa (EMEA) | |||||
Asia Pacific | |||||
Total |
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).
The segment revenue data excluding TAC presents a clear downward trend across all geographic regions over the five-year period analyzed.
- Americas
- The revenue from the Americas segment started at approximately 3.28 billion US dollars in 2012, peaking slightly in 2014 at 3.35 billion. Thereafter, the revenue shows a consistent decline, dropping to about 2.71 billion by the end of 2016. This represents a significant reduction of roughly 20% from the 2014 peak.
- Europe, Middle East, and Africa (EMEA)
- The EMEA segment experienced a steady decrease in revenues throughout the period. Starting at roughly 358 million US dollars in 2012, the revenue decreased each year, reaching approximately 253 million in 2016. This decline totals around 29% over the five years.
- Asia Pacific
- The Asia Pacific segment reveals a similarly downward trend, beginning with 831 million in 2012 and decreasing annually to 556 million in 2016. The cumulative decline over the period amounts to approximately 33%.
- Total Revenue
- Aggregating all regions, total revenue diminished from about 4.47 billion US dollars in 2012 to approximately 3.52 billion in 2016. This reflects an overall contraction of over 21%, driven by consistent declines in all regional segments, with more pronounced decreases outside the Americas.
In summary, the data indicates a broad and persistent reduction in annual segment revenues excluding TAC, affecting all major geographic markets over the analyzed timeframe. The Asia Pacific and EMEA regions exhibited the steepest declines both in percentage terms and overall impact, while the Americas, despite remaining the largest contributor, also faced a notable decrease in revenue towards the end of the period.
Property and equipment, net
Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
---|---|---|---|---|---|
Americas | |||||
Europe, Middle East, and Africa (EMEA) | |||||
Asia Pacific | |||||
Total |
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).
The data on property and equipment, net, across the Americas, Europe, Middle East, and Africa (EMEA), and Asia Pacific regions demonstrates a clear overall declining trend over the five-year period.
- Americas
- The Americas segment shows a peak in 2012 with a value of approximately 1.49 billion US dollars. There is a noticeable decline in 2013 to about 1.35 billion, followed by a slight recovery in 2014 and 2015 where values increased to around 1.38 billion and 1.45 billion respectively. However, in 2016, there is a significant drop to approximately 1.12 billion. Overall, the Americas segment exhibits volatility with a declining trend in the final year.
- Europe, Middle East, and Africa (EMEA)
- The EMEA region shows a consistent and pronounced downward trajectory throughout the five years. Starting at around 59.4 million US dollars in 2012, the figures gradually decrease each year, culminating at approximately 28.4 million in 2016. This represents a reduction of more than 50% over the timeframe, indicating a steady decrease in property and equipment net value in this region.
- Asia Pacific
- Similar to EMEA, the Asia Pacific region experiences a steady decline. Beginning at roughly 141.3 million in 2012, the value falls consistently year over year, reaching about 58.4 million in 2016. This reflects a significant shrinkage in net property and equipment value, reducing to less than half of the initial amount within the period.
- Total
- Aggregating across all segments, total property and equipment, net, peaked in 2012 at approximately 1.69 billion US dollars. A decline is evident in 2013, with the total falling by nearly 200 million. The total remains relatively stable in 2014 and 2015, hovering around 1.49 to 1.55 billion, before a sharp decrease to approximately 1.21 billion in 2016. This overall pattern indicates a gradual reduction in net property and equipment over the period, with an accentuated drop in the final year.
The data suggests that the company has been reducing or depreciating its property and equipment assets over these years, especially in the EMEA and Asia Pacific regions. The Americas segment shows some fluctuations but ultimately follows the broader declining pattern. The sharp decline in 2016 could imply asset sales, impairments, or shifts in strategic focus that reduced the net property and equipment holdings.