Return on Assets (ROA)
since 2005
Calculation
EMC Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss) attributable to EMC Corporation1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 4.27% | = | 100 | × | 1,990) | ÷ | 46,612) |
| Dec 31, 2014 | 5.91% | = | 100 | × | 2,714) | ÷ | 45,885) |
| Dec 31, 2013 | 6.30% | = | 100 | × | 2,889) | ÷ | 45,849) |
| Dec 31, 2012 | 7.18% | = | 100 | × | 2,733) | ÷ | 38,069) |
| Dec 31, 2011 | 7.18% | = | 100 | × | 2,461) | ÷ | 34,268) |
| Dec 31, 2010 | 6.16% | = | 100 | × | 1,900) | ÷ | 30,833) |
| Dec 31, 2009 | 4.06% | = | 100 | × | 1,088) | ÷ | 26,812) |
| Dec 31, 2008 | 5.64% | = | 100 | × | 1,346) | ÷ | 23,875) |
| Dec 31, 2007 | 7.47% | = | 100 | × | 1,666) | ÷ | 22,285) |
| Dec 31, 2006 | 6.59% | = | 100 | × | 1,224) | ÷ | 18,566) |
| Dec 31, 2005 | 6.75% | = | 100 | × | 1,133) | ÷ | 16,790) |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance of EMC Corporation between 2005 and 2015 is characterized by a substantial expansion of the asset base coupled with fluctuating profitability margins. While total assets grew consistently throughout the eleven-year period, the return on assets (ROA) exhibited significant volatility, reflecting alternating periods of operational efficiency and margin compression.
- Asset Base Expansion
- Total assets experienced an uninterrupted upward trajectory, increasing from 16,790 million USD in 2005 to 46,612 million USD by 2015. This represents a growth of approximately 177% over the observed period, indicating a significant and continuous scaling of the organization's resource base.
- Net Income Trajectory
- Net income attributable to the corporation followed a generally positive trend for the majority of the period, rising from 1,133 million USD in 2005 to a peak of 2,889 million USD in 2013. However, a contraction occurred in the final two years, with income declining to 1,990 million USD by 2015, suggesting a reduction in absolute profitability toward the end of the sequence.
- Return on Assets (ROA) Analysis
- The ROA fluctuated between a peak of 7.47% in 2007 and a trough of 4.06% in 2009. A sharp decline is observed between 2007 and 2009, where asset growth outpaced net income generation. A recovery phase followed, with ROA returning to 7.18% by 2012. Following this recovery, a steady downward trend emerged from 2013 to 2015, with the ratio falling to 4.27%. This final decline indicates a diminishing ability to generate profit from the expanded asset base, as net income decreased while total assets continued to rise.
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Comparison to Competitors
EMC Corp., ROA, long-term trends, comparison to competitors
| EMC Corp. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 4.27% | -21.23% | 9.87% | 9.00% | 12.88% | 11.08% | 7.59% | 7.00% | 7.40% | 12.01% | 8.76% | 10.38% | 18.40% |
| Dec 31, 2014 | 5.91% | -10.70% | 9.17% | 8.14% | 2.51% | 12.73% | 10.52% | 7.91% | 5.78% | 13.53% | 6.07% | 16.40% | 15.92% |
| Dec 31, 2013 | 6.30% | -1.91% | 10.55% | 2.13% | 16.16% | 10.42% | 10.27% | 1.57% | 5.83% | 6.22% | 8.77% | 15.06% | 11.42% |
| Dec 31, 2012 | 7.18% | -29.58% | 11.59% | 0.90% | 19.67% | 13.05% | 14.82% | 2.11% | 10.66% | -7.20% | 10.46% | 14.20% | 8.79% |
| Dec 31, 2011 | 7.18% | 9.91% | 16.44% | 13.90% | 22.57% | 18.20% | 16.99% | 17.84% | 14.26% | 1.13% | 5.63% | 11.70% | 10.91% |
| Dec 31, 2010 | 6.16% | 9.49% | 16.45% | 8.57% | 19.24% | 18.14% | 5.43% | 13.94% | 6.84% | 12.59% | -1.90% | 10.62% | 24.09% |
| Dec 31, 2009 | 4.06% | 3.35% | 7.28% | -3.19% | -2.23% | 8.23% | -14.50% | -15.48% | 3.34% | -16.02% | -0.90% | 5.80% | 12.13% |
| Dec 31, 2008 | 5.64% | -40.36% | 25.44% | 8.73% | — | 10.43% | 7.41% | 15.65% | -2.51% | -12.06% | 21.28% | 12.86% | 16.10% |
| Dec 31, 2007 | 7.47% | -29.26% | 16.72% | 16.05% | — | 12.54% | 11.42% | 32.63% | -0.27% | -2.16% | 16.78% | 17.86% | 20.98% |
| Dec 31, 2006 | 6.59% | -1.26% | 13.78% | 16.00% | — | 10.43% | 8.31% | 14.51% | 9.43% | 3.34% | 15.80% | 16.24% | 31.16% |
| Dec 31, 2005 | 6.75% | 2.27% | 9.05% | 10.74% | — | 17.93% | 11.71% | 20.66% | 5.08% | 2.35% | 6.16% | 17.17% | 15.43% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
EMC Corp., ROA, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| EMC Corp. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2015 | 4.27% | 10.65% |
| Dec 31, 2014 | 5.91% | 12.05% |
| Dec 31, 2013 | 6.30% | 10.05% |
| Dec 31, 2012 | 7.18% | 9.54% |
| Dec 31, 2011 | 7.18% | 13.83% |
| Dec 31, 2010 | 6.16% | 14.54% |
| Dec 31, 2009 | 4.06% | 3.60% |
| Dec 31, 2008 | 5.64% | 6.42% |
| Dec 31, 2007 | 7.47% | 9.30% |
| Dec 31, 2006 | 6.59% | 12.06% |
| Dec 31, 2005 | 6.75% | 13.79% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
EMC Corp., ROA, long-term trends, comparison to industry (information technology)
| EMC Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2015 | 4.27% | 11.51% |
| Dec 31, 2014 | 5.91% | 12.33% |
| Dec 31, 2013 | 6.30% | 13.22% |
| Dec 31, 2012 | 7.18% | 14.06% |
| Dec 31, 2011 | 7.18% | 15.11% |
| Dec 31, 2010 | 6.16% | 14.45% |
| Dec 31, 2009 | 4.06% | 10.04% |
| Dec 31, 2008 | 5.64% | 11.87% |
| Dec 31, 2007 | 7.47% | 11.93% |
| Dec 31, 2006 | 6.59% | 12.20% |
| Dec 31, 2005 | 6.75% | 12.71% |
Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).