Return on Assets (ROA)
since 2013
Calculation
Twitter Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income (loss)1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | -1.57% | = | 100 | × | (221,409) | ÷ | 14,059,516) |
| Dec 31, 2020 | -8.49% | = | 100 | × | (1,135,626) | ÷ | 13,379,090) |
| Dec 31, 2019 | 11.54% | = | 100 | × | 1,465,659) | ÷ | 12,703,389) |
| Dec 31, 2018 | 11.86% | = | 100 | × | 1,205,596) | ÷ | 10,162,572) |
| Dec 31, 2017 | -1.46% | = | 100 | × | (108,063) | ÷ | 7,412,477) |
| Dec 31, 2016 | -6.65% | = | 100 | × | (456,873) | ÷ | 6,870,365) |
| Dec 31, 2015 | -8.09% | = | 100 | × | (521,031) | ÷ | 6,442,439) |
| Dec 31, 2014 | -10.35% | = | 100 | × | (577,820) | ÷ | 5,583,082) |
| Dec 31, 2013 | -19.17% | = | 100 | × | (645,323) | ÷ | 3,366,240) |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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).
1 US$ in thousands
The Return on Assets (ROA) for the period between 2013 and 2021 exhibits significant volatility, characterized by an initial phase of narrowing losses, a brief window of profitability, and a subsequent return to negative returns. While the asset base grew consistently throughout the entire period, net income failed to maintain a stable positive trajectory, leading to inconsistent asset efficiency.
- Asset Base Expansion
- Total assets demonstrated continuous and monotonic growth over the nine-year period. The asset base increased from $3.37 billion in 2013 to $14.06 billion by the end of 2021. This steady expansion indicates a consistent increase in the company's total resources regardless of its profitability status.
- Net Income Volatility
- Net income remained negative from 2013 through 2017, though the scale of losses decreased annually during this timeframe. A transition to profitability was achieved in 2018 and 2019, with net income peaking at $1.47 billion in 2019. This positive trend was reversed in 2020, which saw a substantial loss of $1.14 billion, followed by a continued, albeit smaller, loss of $221.41 million in 2021.
- ROA Performance Trends
- The ROA trend reflects three distinct phases. First, from 2013 to 2017, there was a recovery trend where the ROA improved from -19.17% to -1.46%. Second, a period of operational efficiency occurred in 2018 and 2019, with ROA figures of 11.86% and 11.54%, respectively. Third, the ROA declined sharply to -8.49% in 2020 before moderating to -1.57% in 2021, indicating a failure to translate the expanded asset base into sustained earnings.
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Comparison to Competitors
Twitter Inc., ROA, long-term trends, comparison to competitors
| Twitter Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2021 | -1.57% | 21.16% | 5.13% | 23.72% | 11.48% | 0.98% |
| Dec 31, 2020 | -8.49% | 12.60% | 3.85% | 18.29% | 7.03% | -1.42% |
| Dec 31, 2019 | 11.54% | 12.45% | 4.96% | 13.86% | 5.49% | 5.70% |
| Dec 31, 2018 | 11.86% | 13.20% | 4.66% | 22.72% | 4.66% | 12.78% |
| Dec 31, 2017 | -1.46% | 6.42% | 12.15% | 18.85% | 2.94% | 9.37% |
| Dec 31, 2016 | -6.65% | 11.63% | 4.82% | 15.73% | 1.37% | 10.20% |
| Dec 31, 2015 | -8.09% | 11.09% | 4.90% | 7.46% | 1.20% | 9.51% |
| Dec 31, 2014 | -10.35% | 11.01% | 5.26% | 7.32% | 3.78% | 8.91% |
| Dec 31, 2013 | -19.17% | 11.65% | 4.29% | 8.38% | 2.08% | 7.55% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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).
Comparison to Sector (Media & Entertainment)
Twitter Inc., ROA, long-term trends, comparison to sector (media & entertainment)
| Twitter Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2021 | -1.57% | 13.02% |
| Dec 31, 2020 | -8.49% | 8.04% |
| Dec 31, 2019 | 11.54% | 8.75% |
| Dec 31, 2018 | 11.86% | 11.10% |
| Dec 31, 2017 | -1.46% | 10.43% |
| Dec 31, 2016 | -6.65% | 9.25% |
| Dec 31, 2015 | -8.09% | 7.95% |
| Dec 31, 2014 | -10.35% | 7.95% |
| Dec 31, 2013 | -19.17% | 7.34% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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).
Comparison to Industry (Communication Services)
Twitter Inc., ROA, long-term trends, comparison to industry (communication services)
| Twitter Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2021 | -1.57% | 8.36% |
| Dec 31, 2020 | -8.49% | 4.69% |
| Dec 31, 2019 | 11.54% | 6.30% |
| Dec 31, 2018 | 11.86% | 7.37% |
| Dec 31, 2017 | -1.46% | 9.22% |
| Dec 31, 2016 | -6.65% | 6.13% |
| Dec 31, 2015 | -8.09% | 5.86% |
| Dec 31, 2014 | -10.35% | 4.94% |
| Dec 31, 2013 | -19.17% | 5.87% |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 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).