Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Profitability Ratios (Summary)
eBay Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 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).
- Gross Profit Margin
- The gross profit margin shows a general upward trend from 67.98% in March 2014 to a peak of 79.39% in March 2016. Thereafter, it slightly declined but remained relatively stable, fluctuating around the mid to high 70% range through September 2019. This indicates an overall improvement in cost control or pricing power over the years, with margins maintaining a strong level after the peak.
- Operating Profit Margin
- The operating profit margin also exhibits an increasing trend initially, moving from 19.63% in March 2014 to a high of 27.14% in September 2016. Post this peak, there is a gradual decline and stabilization around the low 20% range through 2018, followed by a modest recovery to approximately 22% by September 2019. This pattern suggests that while operating efficiency improved significantly early in the period, challenges or increased expenses may have tempered margin growth in subsequent years.
- Net Profit Margin
- Net profit margin displays significant volatility. Starting from a negligible 0.26% in March 2014, it saw a substantial increase to over 80% during early 2017. This unusually high figure is followed by a sharp decline into negative territory beginning in 2018, hitting lows around -16.56% before recovering to positive margins near 18.33% by September 2019. The drastic fluctuations could indicate one-time gains or losses, significant tax effects, or extraordinary items impacting net income during these periods, rather than reflecting ongoing operational performance.
- Return on Equity (ROE)
- The ROE mirrors the volatility seen in net profit margin. It increased from near zero in early 2014 to peak levels above 65% in early 2017, demonstrating very high shareholder returns during that time. However, there is a sharp turnaround in 2018 with negative returns reaching down to around -21.64%, before rebounding strongly to over 60% by September 2019. This pattern corresponds with the net margin variations and suggests fluctuating profitability alongside changes in equity base or extraordinary items.
- Return on Assets (ROA)
- Return on assets followed a similar trend with increases from 0.1% in March 2014 to over 30% in early 2017. It then declined into negative values in 2018, followed by a moderate recovery to around 10.63% by late 2019. This indicates variations in asset utilization efficiency in line with profit fluctuations, likely impacted by extraordinary factors affecting overall asset returns.
- Overall Insights
- The data illustrates steady improvements in gross and operating profit margins indicating robust operational performance over the medium term. However, net profit margin and returns on equity and assets exhibit significant volatility including periods of exceptional profitability followed by steep declines and recovery. This inconsistency suggests temporary impacts such as one-off transactions, accounting adjustments, or external events had a pronounced effect on bottom-line profitability and returns during 2017-2019. Operational margins remained solid, but bottom-line metrics were subject to dramatic swings.
Return on Sales
Return on Investment
Gross Profit Margin
eBay Inc., gross profit margin calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | ||||||||||||||||||||||||||||||
| Home Depot Inc. | ||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | ||||||||||||||||||||||||||||||
| TJX Cos. Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 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).
1 Q3 2019 Calculation
Gross profit margin = 100
× (Gross profitQ3 2019
+ Gross profitQ2 2019
+ Gross profitQ1 2019
+ Gross profitQ4 2018)
÷ (Net revenuesQ3 2019
+ Net revenuesQ2 2019
+ Net revenuesQ1 2019
+ Net revenuesQ4 2018)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit figures exhibit a general pattern of quarterly fluctuations with a noticeable seasonal increase towards the fourth quarter in several years. For instance, there are pronounced peaks in December of each year, exemplified by values such as 3,321 million USD in December 2014, 1,829 million USD in December 2015, 1,856 million USD in December 2016, 2,023 million USD in December 2017, and 2,259 million USD in December 2018. Between these peaks, gross profit tends to decline or stabilize at lower levels. Overall, from 2014 to 2019, gross profit shows an upward trend, particularly in later quarters, despite some fluctuations quarter-on-quarter. A gradual increase in gross profit can be observed when moving from the first quarter of 2014 (2,911 million USD) to the first quarter of 2019 (2,042 million USD), indicating modest growth over the period with seasonal patterns intact.
- Net Revenues
- Net revenues demonstrate a consistent upward trajectory with distinct seasonality similar to gross profit. Quarterly revenues peak regularly in the fourth quarter, with values such as 4,921 million USD in December 2014, 2,322 million USD in December 2015, 2,395 million USD in December 2016, 2,613 million USD in December 2017, and 2,877 million USD in December 2018. The revenue figures nearly double when comparing early 2014 quarters to the corresponding quarters in 2019, reflecting sustained growth. Despite seasonal dips and slight fluctuations within each year, the overall growth in net revenues indicates expanding business activity and possibly increased sales volume or pricing power during the observed periods.
- Gross Profit Margin
- The gross profit margin demonstrates a steady improvement over the analyzed periods starting at approximately 67.98% in March 2015 and rising to a consistent range near 77-79% in subsequent years. The margin reaches its highest levels around late 2015 and early 2016, with small fluctuations thereafter. Throughout the years 2016 to 2019, the gross margin maintains a relatively stable and high level, fluctuating modestly around 77%. This indicates an improvement in cost management or pricing strategy, allowing for greater profitability relative to revenues. The overall increase in gross profit margin suggests enhanced operational efficiency and a stronger competitive position during the timeframe examined.
Operating Profit Margin
eBay Inc., operating profit margin calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | ||||||||||||||||||||||||||||||
| Home Depot Inc. | ||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | ||||||||||||||||||||||||||||||
| TJX Cos. Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 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).
1 Q3 2019 Calculation
Operating profit margin = 100
× (Income from operationsQ3 2019
+ Income from operationsQ2 2019
+ Income from operationsQ1 2019
+ Income from operationsQ4 2018)
÷ (Net revenuesQ3 2019
+ Net revenuesQ2 2019
+ Net revenuesQ1 2019
+ Net revenuesQ4 2018)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's performance over the observed periods.
- Income from Operations
- The income from operations shows significant fluctuations throughout the quarters. Initially, there was an increase from 878 million USD in March 2014 to a peak of 1061 million USD in December 2014. Following this peak, a sharp decline occurred over the subsequent two quarters, dropping to 428 million USD by June 2015. A recovery phase is observed afterward, with gradual increases leading to another peak of 663 million USD in December 2015. Subsequently, a declining trend took place, reaching a low of 406 million USD by June 2018. The final few quarters indicate a mild recovery, with the figure rising to 609 million USD by September 2019. Overall, the income from operations demonstrates volatility with alternating periods of growth and decline.
- Net Revenues
- Net revenues display a more consistent upward trajectory compared to income from operations. Starting at 4262 million USD in March 2014, revenues generally increased across the quarters to reach 4921 million USD in December 2014. A mid-2015 reset shows a decline to around 2061 million USD in March 2015, followed by steady growth over the succeeding quarters. By the end of the dataset, net revenues have risen to approximately 2649 million USD in September 2019. This trend suggests ongoing revenue growth with a pause in early 2015, potentially linked to business restructuring or changes in revenue categorization.
- Operating Profit Margin
- The operating profit margin is reported starting in March 2015, beginning at 19.63%, and shows an increasing trend through to December 2016, reaching a high of 27.14%. After this peak, the margin demonstrates a gradual decline, settling around 21.95% by September 2019. This pattern indicates improving operating efficiency or profitability until late 2016, followed by pressures that have reduced the operating margin, though it remains above the initial reported figures.
In summary, the data indicates that while net revenues exhibit steady growth after early 2015 adjustments, income from operations is more volatile, evidencing uneven profitability through the quarters. The operating profit margin improvement through late 2016 reflects enhanced profitability, but the subsequent decline suggests challenges in maintaining those profit levels. These combined trends highlight a business experiencing revenue expansion with fluctuating operational profitability over the analyzed period.
Net Profit Margin
eBay Inc., net profit margin calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | ||||||||||||||||||||||||||||||
| Home Depot Inc. | ||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | ||||||||||||||||||||||||||||||
| TJX Cos. Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 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).
1 Q3 2019 Calculation
Net profit margin = 100
× (Net income (loss)Q3 2019
+ Net income (loss)Q2 2019
+ Net income (loss)Q1 2019
+ Net income (loss)Q4 2018)
÷ (Net revenuesQ3 2019
+ Net revenuesQ2 2019
+ Net revenuesQ1 2019
+ Net revenuesQ4 2018)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in net income, net revenues, and net profit margin over the examined periods.
- Net Income (Loss)
- Net income exhibits significant volatility across quarters. Initial periods show a loss of -2326 million USD in March 2014, followed by positive income peaking at 5936 million USD in December 2016. However, a sharp drop to -2601 million USD is observed in December 2017, indicating a substantial downturn. Post this decline, net income stabilizes with moderate positive values around 300 to 700 million USD by 2019.
- Net Revenues
- Net revenues demonstrate moderate fluctuations but generally maintain a stable range between approximately 2,000 and 2,900 million USD across most periods. There is a noticeable decrease in reported revenue from early 2015 through 2017 compared to 2014, followed by a gradual recovery afterwards, reaching just under 2,900 million USD in late 2018 and maintaining similar levels into 2019.
- Net Profit Margin
- The net profit margin percentages fluctuate considerably. Early values around 20% in 2015 and 2016 show high profitability. Exceptionally high profit margins exceeding 80% in 2016 and early 2017 are likely anomalous or influenced by special items. Subsequently, net profit margin turns negative during late 2017 and 2018, reflecting the periods of net income losses. By 2019, margins recover to a positive range around 18% to 24%, indicating restored profitability.
Overall, the financial performance is characterized by strong revenue stability contrasting with volatile profitability levels. The sharp peaks and troughs in net income and profit margin suggest episodic financial impacts or exceptional events influencing earnings during the period. The latter quarters display a trend towards recovery and stabilization in profitability following a challenging phase in 2017-2018.
Return on Equity (ROE)
eBay Inc., ROE calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Stockholders’ equity | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | ||||||||||||||||||||||||||||||
| Home Depot Inc. | ||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | ||||||||||||||||||||||||||||||
| TJX Cos. Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 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).
1 Q3 2019 Calculation
ROE = 100
× (Net income (loss)Q3 2019
+ Net income (loss)Q2 2019
+ Net income (loss)Q1 2019
+ Net income (loss)Q4 2018)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The net income of the company exhibits significant fluctuations over the reported quarters. Initially, there was a large negative value, followed by a recovery to positive territory with noteworthy variability. The values peak notably in the fourth quarter of 2016, reaching a high of 5936 million USD, indicating an exceptional period of profitability. However, the subsequent quarters demonstrate a decline, with net income oscillating between positive and negative results, including a sharp drop in the fourth quarter of 2017 to -2601 million USD. The later quarters reflect moderate positive net income figures but do not return to the peak levels observed in late 2016.
Stockholders' equity shows a general downtrend from the beginning to the end of the reported periods. Starting at approximately 19609 million USD, it decreases steadily with minor some fluctuations, reaching about 3270 million USD in the last reported quarter. Notably, there is a sharp decline observed in late 2015, from about 19805 million USD in the mid-year quarter to 6492 million USD in the following quarter, suggesting a significant event impacting equity. Following this, equity stabilizes somewhat but continues the overall downward trend throughout the subsequent periods.
Return on equity (ROE) demonstrates marked volatility over the periods. It begins relatively low around 0.23%, then rises significantly, with spikes in several quarters such as 34.98% and peaks nearing 68.94% to 67.43% in late 2016 and early 2017. This indicates periods of high profitability relative to equity during these times. Conversely, the ROE records negative values between late 2017 and late 2018, reflecting losses or inefficiencies in generating return from equity. Toward the end of the data, ROE recovers impressively, surpassing 50% and continuing an upward trend above 60%, suggesting improved profitability relative to equity despite the lower absolute equity values reported.
Overall, the financial data reveal a pattern of significant earnings volatility, with a peak in net income in late 2016 followed by fluctuating profits. The steady decline in stockholders' equity over the years suggests sustained equity impairment or distributions exceeding earnings. Despite this, the improvement in ROE toward the final quarters illustrates a more effective utilization of equity to generate profits, albeit from a smaller equity base. Such trends highlight a complex financial condition, with periods of high profitability overshadowed by equity erosion and income instability.
Return on Assets (ROA)
eBay Inc., ROA calculation (quarterly data)
| Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||
| Net income (loss) | ||||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | ||||||||||||||||||||||||||||||
| Home Depot Inc. | ||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | ||||||||||||||||||||||||||||||
| TJX Cos. Inc. | ||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 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).
1 Q3 2019 Calculation
ROA = 100
× (Net income (loss)Q3 2019
+ Net income (loss)Q2 2019
+ Net income (loss)Q1 2019
+ Net income (loss)Q4 2018)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends regarding profitability, asset levels, and return on assets (ROA) over the observed periods.
- Net Income (Loss)
- Net income exhibits significant volatility across the quarters. Initial periods reflect losses and modest profits, particularly a substantial loss of -$2326 million in the first quarter of 2014. Following this, income fluctuates with some growth observed towards the end of 2016, peaking with a sizable gain of $5936 million in the last quarter of 2016. Subsequently, the data shows alternating positive and negative results, with sharp declines such as the -$2601 million loss in Q4 2017, followed by a series of smaller profits from 2018 through 2019, although generally lower compared to the peak in 2016.
- Total Assets
- Total assets remain relatively stable between 2014 and mid-2015, fluctuating near the $40 billion mark. A pronounced decline occurs in the second half of 2015, dropping sharply from over $45 billion to under $18 billion, likely related to a significant corporate event such as an asset sale or restructuring. From 2016 onward, total assets gradually increase again to around $27 billion by mid-2017, then experience a steady downward trend through 2019, finishing near $18.7 billion.
- Return on Assets (ROA)
- The ROA displays large variation, with missing data in early periods but rising sharply from early 2015 to late 2016, where values exceed 25% and peak over 31% at times, indicating highly efficient utilization of assets during these quarters. However, from early 2017, ROA declines significantly and becomes negative in several quarters during 2017 and 2018, reflecting periods where earnings were insufficient relative to asset base. By 2019, ROA recovers to positive levels around 10 to 12%, suggesting a return to moderate profitability relative to assets.
Overall, the data indicates a period of considerable financial restructuring or strategic change around mid-2015, as evidenced by the drastic reduction in total assets. Profitability and efficiency metrics improved strongly following this event, culminating in notably high ROA figures in 2016. However, the subsequent decline in net income and ROA through 2017 and 2018 points to operational challenges or market pressures. By 2019, the financial performance appears somewhat stabilized but below peak historical levels.