Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Profitability Ratios (Summary)
EMC Corp., profitability ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
- Gross Profit Margin
- The gross profit margin remained relatively stable over the observed periods, fluctuating narrowly between approximately 60.7% and 62.8%. Beginning at 61.4% in the first quarter of 2012, it experienced a mild increase to a peak above 62.8% by the end of 2012. Subsequently, the margin showed a gradual declining trend through to mid-2015, reaching its lowest point around 60.68% in late 2015, before demonstrating a slight recovery towards mid-2016.
- Operating Profit Margin
- Operating profit margin exhibited a clear downward trajectory over the periods analyzed. Initially strong at approximately 17.65% in early 2012, it peaked slightly in the middle of that year but started to decline steadily from 2013 onwards. By the end of 2015, the margin had decreased significantly to around 11.5%, with a marginal improvement in early 2016 to roughly 12.5%. This pattern suggests increasing operating expenses or lower operating efficiency relative to revenue.
- Net Profit Margin
- The net profit margin followed a similar declining pattern as the operating margin. Starting at about 12.55% in early 2012, it remained relatively stable through 2012 but began a consistent decrease from 2013 onwards. By late 2015, the margin had fallen to approximately 8.06%, with a slight improvement in mid-2016 to around 8.54%. This indicates reduced profitability at the net income level relative to sales, potentially due to higher costs, increased liabilities, or other financial factors.
- Return on Equity (ROE)
- Return on equity showed a moderate decline throughout the timeframe. It began near 12.8% in early 2012, experienced minor fluctuations, and maintained levels close to 12% up to mid-2014. From late 2014 onward, ROE trended downward more noticeably, dropping to just below 9.5% by mid-2016. This decrease reflects a reduction in the company's efficiency in generating profits from shareholders' equity.
- Return on Assets (ROA)
- Return on assets displayed a steady and more pronounced decline compared to other profitability metrics. From a high point of around 7.6% at the start of 2012, ROA gradually decreased to approximately 4.3% by late 2015. Although there was a slight recovery to 4.5% in mid-2016, the overall trend indicates diminishing effectiveness in asset utilization to generate earnings over the observed periods.
Return on Sales
Return on Investment
Gross Profit Margin
EMC Corp., gross profit margin calculation (quarterly data)
| 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 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
Gross profit margin = 100
× (Gross profitQ2 2016
+ Gross profitQ1 2016
+ Gross profitQ4 2015
+ Gross profitQ3 2015)
÷ (RevenuesQ2 2016
+ RevenuesQ1 2016
+ RevenuesQ4 2015
+ RevenuesQ3 2015)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends in the company's gross profit, revenues, and gross profit margin over the examined period.
- Revenues
- Revenues demonstrate a generally increasing pattern with some fluctuations across quarters. Starting from approximately 5,094 million USD in the first quarter of 2012, revenues rise to a peak of around 7,049 million USD by the end of 2014. Although there are some quarterly declines, the overall trajectory is upward, indicating growth in the company’s sales volume or pricing power over the three-year span. Notably, revenues experienced a decline starting from the fourth quarter of 2014 into early 2016 but remain above the levels observed in early 2012.
- Gross Profit
- Gross profit follows a similar trend to revenues, increasing from about 3,113 million USD in the first quarter of 2012 to a peak near 4,505 million USD by the end of 2014. The gross profit trajectory reflects the improvement in top-line performance, though it too shows some variability quarter to quarter. Like revenues, gross profit dips in the most recent quarters up to mid-2016 but stays elevated relative to the earliest periods. This consistency suggests effective cost management or favorable sales mix despite the softer top line in some recent quarters.
- Gross Profit Margin
- The gross profit margin remains relatively stable throughout the period, fluctuating narrowly between approximately 60.7% and 62.8%. Early quarters in 2012 show margins around 61.4% to 62.8%, with a slight moderation observed starting in late 2014. From 2014 onwards, the margin gradually declines from about 62.4% to lows near 60.7% by mid-2016. While the margin contraction is modest, it may indicate increasing cost pressures, slight changes in product mix, or competitive dynamics impacting profitability at the gross level.
In summary, the company has demonstrated solid revenue and gross profit growth through 2014, with subsequent quarters showing some revenue softening and a slight decline in gross profit margins. The relatively stable margin above 60% suggests generally effective cost control and pricing strategies, though the downward trend in margin during the latter period warrants further examination to identify underlying causes and to ensure sustained profitability.
Operating Profit Margin
EMC Corp., operating profit margin calculation (quarterly data)
| 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 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
Operating profit margin = 100
× (Operating incomeQ2 2016
+ Operating incomeQ1 2016
+ Operating incomeQ4 2015
+ Operating incomeQ3 2015)
÷ (RevenuesQ2 2016
+ RevenuesQ1 2016
+ RevenuesQ4 2015
+ RevenuesQ3 2015)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analyzed financial data reveals several notable trends over the periods under review. Operating income displays considerable variability, with peaks typically occurring in the fourth quarters—December 31, 2012, 2013, and 2014—indicating a potential seasonal influence or cyclical performance enhancement at year-end. There is a distinct downward shift in operating income starting in 2015, reaching lower absolute levels compared to earlier years, which persists through to mid-2016.
Revenues demonstrate a more stable trajectory but also exhibit marked growth during fourth quarters, consistent with the pattern observed in operating income. The period from 2012 to 2014 shows a general upward trend in revenues, culminating in the highest revenue figures during late 2013 and 2014, followed by a slight decline and stabilization in 2015 and 2016.
Operating profit margin displays a gradual declining trend throughout the timeline. Early periods, especially in 2012 and 2013, show margins consistently above 17%, while margins progressively decrease beginning in 2014, falling to levels near 11.5% to 12.5% by 2015 and mid-2016. This reduction in margins suggests decreasing efficiency or increased cost pressures, despite revenues remaining relatively stable.
- Operating Income
- Generally peaks in Q4 each year, with highest recorded values in December 2012, 2013, and 2014.
- Marked decrease in performance from 2015 onward, with significantly lower income values through mid-2016.
- Revenues
- Exhibit seasonal increases in the fourth quarter, showing consistent patterns year over year.
- Steady growth from 2012 to 2014, followed by slight decline and stabilization in 2015 and 2016.
- Operating Profit Margin
- Declines steadily over the observed period.
- Margins fall from above 17% in 2012 and 2013 to approximately 11.5% to 12.5% by 2015 and 2016.
- Indicates reduced profitability control or rising costs despite revenue stability.
In summary, the data illustrates a company experiencing cyclical revenue and operating income enhancements toward the end of each year, combined with declining profitability margins over time. This suggests a need for investigation into cost management and strategic efficiency improvements to address the diminishing operating profit margin despite relatively steady revenue streams.
Net Profit Margin
EMC Corp., net profit margin calculation (quarterly data)
| 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 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income attributable to EMC Corporation | ||||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
Net profit margin = 100
× (Net income attributable to EMC CorporationQ2 2016
+ Net income attributable to EMC CorporationQ1 2016
+ Net income attributable to EMC CorporationQ4 2015
+ Net income attributable to EMC CorporationQ3 2015)
÷ (RevenuesQ2 2016
+ RevenuesQ1 2016
+ RevenuesQ4 2015
+ RevenuesQ3 2015)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance indicators over the observed quarters reveal several notable trends and shifts in the company's profitability and revenue generation.
- Net Income Attributable
- The net income shows a pattern of fluctuations across the reported periods. Initially, it increased from 587 million USD in March 2012 to a peak of 1,022 million USD by December 2013. This was followed by a sharp decrease to 392 million USD in March 2014, after which the net income gradually climbed again, reaching another peak of 1,146 million USD by December 2014. Thereafter, a downward trend became evident, with values diminishing to 268 million USD by March 2016, aligning with the lowest figures in the series towards the end of the period analyzed.
- Revenues
- Revenue figures depict an overall upward trend from around 5,094 million USD in March 2012 to a high of approximately 7,049 million USD by December 2014. This growth phase was followed by some volatility, evidenced by decreases and recoveries, stabilizing around the mid-5,000 to 6,000 million USD range by mid-2016. The revenue swings are relatively moderate compared to net income, indicating that factors other than sales volumes, such as costs or expenses, might influence profitability more directly.
- Net Profit Margin
- The net profit margin shows a consistent downward trend over the analyzed periods. Starting above 12% in early 2012, it slowly declined to around 8-9% by mid-2016. This indicates a reduction in profitability per dollar of revenue, despite the overall growth in revenues during some periods. The steady margin decline suggests either increased costs, pricing pressures, or changes in the product mix affecting earnings quality.
In summary, while revenues have generally increased over the years, profitability as measured by net income and net profit margin has experienced significant volatility and a gradual decline, respectively. This juxtaposition highlights underlying challenges in maintaining earnings growth in relation to sales, necessitating close attention to operational efficiencies and cost management going forward.
Return on Equity (ROE)
EMC Corp., ROE calculation (quarterly data)
| 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 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income attributable to EMC Corporation | ||||||||||||||||||||||||
| Total EMC Corporation’s shareholders’ equity | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
ROE = 100
× (Net income attributable to EMC CorporationQ2 2016
+ Net income attributable to EMC CorporationQ1 2016
+ Net income attributable to EMC CorporationQ4 2015
+ Net income attributable to EMC CorporationQ3 2015)
÷ Total EMC Corporation’s shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the quarterly performance over the observed periods. Net income attributable to the corporation exhibits considerable volatility, with peaks and troughs that suggest fluctuations in profitability. After a relatively strong performance reaching above one billion US dollars in the fourth quarter of 2013 and the same quarter of 2014, net income subsequently declined and showed irregular movement through to mid-2016, indicating variability in earnings capacity.
Total shareholders' equity demonstrates a general stability with moderate fluctuations. Equity increased steadily from 2012 through 2014, reaching a peak near the end of 2014. However, it experienced a decline afterward, with some recovery beginning in 2015 and continuing modestly through mid-2016. This pattern suggests some capital adjustments or retained earnings changes affecting the equity base over time.
Return on equity (ROE) shows a declining trend throughout the timeline. Starting above 12% in 2012 and early 2013, ROE decreased gradually and more noticeably after 2014, dropping below 10% by 2015 and maintaining that lower level into mid-2016. The diminishing ROE indicates a reduced efficiency in generating profit from shareholders’ equity, potentially impacted by the fluctuations in net income alongside the changes in equity levels.
- Net Income
- Volatile with pronounced peaks in Q4 2013 and Q4 2014, followed by a downward trend and irregular performance toward mid-2016.
- Shareholders’ Equity
- Generally stable, with gradual growth until late 2014, followed by decline and partial recovery beginning in 2015.
- Return on Equity (ROE)
- Declined from above 12% in 2012 to under 10% by 2015, indicating reduced profitability relative to equity.
Overall, the data reflects a company facing fluctuating earnings and a moderate decrease in profitability efficiency, despite maintaining a relatively stable equity base. The decline in ROE warrants closer attention to operational performance and capital management to understand and address underlying causes.
Return on Assets (ROA)
EMC Corp., ROA calculation (quarterly data)
| 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 | Dec 31, 2012 | Sep 30, 2012 | Jun 30, 2012 | Mar 31, 2012 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net income attributable to EMC Corporation | ||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Advanced Micro Devices Inc. | ||||||||||||||||||||||||
| Analog Devices Inc. | ||||||||||||||||||||||||
| Applied Materials Inc. | ||||||||||||||||||||||||
| Broadcom Inc. | ||||||||||||||||||||||||
| Intel Corp. | ||||||||||||||||||||||||
| KLA Corp. | ||||||||||||||||||||||||
| Lam Research Corp. | ||||||||||||||||||||||||
| Micron Technology Inc. | ||||||||||||||||||||||||
| NVIDIA Corp. | ||||||||||||||||||||||||
| Qualcomm Inc. | ||||||||||||||||||||||||
| Texas Instruments Inc. | ||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31).
1 Q2 2016 Calculation
ROA = 100
× (Net income attributable to EMC CorporationQ2 2016
+ Net income attributable to EMC CorporationQ1 2016
+ Net income attributable to EMC CorporationQ4 2015
+ Net income attributable to EMC CorporationQ3 2015)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial performance over the examined quarters demonstrates several notable trends in income, asset base, and return measures. The net income attributable to the company exhibits considerable volatility, with peaks and troughs occurring across the periods. Beginning at a moderately high value, net income increases toward the end of 2012, reaching a significant peak in the fourth quarter of 2013. This is followed by a decline in the first quarter of 2014, then a recovery towards the end of 2014. The fluctuations continue into the subsequent years, with net income demonstrating a downward trajectory in 2015 and much of 2016, although some quarters show recovery attempts.
The total assets steadily increase throughout the periods analyzed, indicating consistent growth in the company's asset base. Starting from just under 34,000 million US dollars in early 2012, assets increase incrementally over time, reaching above 46,000 million by mid-2016. This sustained asset growth suggests an expansion strategy or accumulation of assets over time, despite the fluctuations in profitability.
Return on assets (ROA) figures display a declining trend across the quarters. Initially, ROA remains above 7% but gradually decreases over the years to below 5% by mid-2016. This decline suggests that the company is generating lower returns relative to its asset base as time progresses, indicating either diminishing operational efficiency or pressure on profit margins despite growing assets.
- Net Income Trends
- Shows cyclical volatility with significant peaks in late 2012, late 2013, and late 2014 followed by decreases mainly in 2015 and 2016.
- Total Assets Trends
- Displays consistent, moderate growth from approximately 34 billion to 46 billion US dollars between early 2012 and mid-2016.
- Return on Assets (ROA) Trends
- Declines steadily from above 7% to under 5% over the analyzed period, indicating diminishing efficiency of asset utilization.
Overall, the data reflects a growing asset base with unstable profitability and declining return efficiency. The company appears to be expanding its assets, yet challenges in converting those assets into net income are evident, as indicated by the declining ROA. This situation may warrant attention towards improving operational effectiveness or reviewing asset management strategies.