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 financial data indicates fluctuating performance over the examined period, with distinct trends in profitability, asset growth, and return on assets (ROA).
- Net Income (Loss)
- The net income figures show a prolonged period of losses starting from 2013 through 2017, with the magnitude of losses generally declining during this interval. In 2017, the loss significantly narrowed to approximately -108 million USD. This was followed by a remarkable turnaround in 2018 and 2019, where net income turned positive, reaching over 1.2 billion USD and 1.4 billion USD, respectively. However, this improvement was short-lived, as losses resumed in 2020 and 2021, though at smaller absolute values compared to the earlier loss years.
- Total Assets
- The total assets demonstrate consistent growth throughout the entire period. Starting from about 3.4 billion USD in 2013, the assets nearly quadrupled by 2021, reaching over 14 billion USD. This steady asset base expansion reflects ongoing capital investments, acquisitions, or accumulation of resources, which may have supported operational and strategic activities despite profitability challenges in some years.
- Return on Assets (ROA)
- ROA trends closely mirror the net income performance. The ROA started negative and improved progressively from -19.17% in 2013 to a low negative point of -1.46% in 2017, indicative of improving asset utilization despite losses. The ROA became positive during 2018 and 2019, aligning with positive net income, reaching approximately 11.86% and 11.54%. Subsequently, the ROA reverted to negative values in 2020 and 2021, albeit less negative than in earlier years, suggesting less effective asset use or renewed profitability pressures.
Overall, the data reveals a company experiencing substantial volatility in profitability, with evident operational or market challenges causing initial and recent losses. The firm’s asset growth remains strong, indicating continued investment and potential capacity expansion. The fluctuations in ROA reinforce the variable efficiency in leveraging assets to generate profits over the period under review.
Comparison to Competitors
Twitter Inc., ROA, long-term trends, comparison to competitors
| Twitter Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | -1.57% | 21.16% | 5.13% | 23.72% | 11.48% | 9.77% | 0.98% |
| Dec 31, 2020 | -8.49% | 12.60% | 3.85% | 18.29% | 7.03% | 8.17% | -1.42% |
| Dec 31, 2019 | 11.54% | 12.45% | 4.96% | 13.86% | 5.49% | 7.87% | 5.70% |
| Dec 31, 2018 | 11.86% | 13.20% | 4.66% | 22.72% | 4.66% | 4.64% | 12.78% |
| Dec 31, 2017 | -1.46% | 6.42% | 12.15% | 18.85% | 2.94% | 2.14% | 9.37% |
| Dec 31, 2016 | -6.65% | 11.63% | 4.82% | 15.73% | 1.37% | -0.32% | 10.20% |
| Dec 31, 2015 | -8.09% | 11.09% | 4.90% | 7.46% | 1.20% | -12.53% | 9.51% |
| Dec 31, 2014 | -10.35% | 11.01% | 5.26% | 7.32% | 3.78% | 20.09% | 8.91% |
| Dec 31, 2013 | -19.17% | 11.65% | 4.29% | 8.38% | 2.08% | -2.31% | 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% | 13.01% |
| Dec 31, 2020 | -8.49% | 8.04% |
| Dec 31, 2019 | 11.54% | 8.75% |
| Dec 31, 2018 | 11.86% | 11.06% |
| Dec 31, 2017 | -1.46% | 10.38% |
| Dec 31, 2016 | -6.65% | 9.20% |
| Dec 31, 2015 | -8.09% | 7.85% |
| Dec 31, 2014 | -10.35% | 8.00% |
| Dec 31, 2013 | -19.17% | 7.31% |
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% | 8.37% |
| Dec 31, 2020 | -8.49% | 4.70% |
| Dec 31, 2019 | 11.54% | 6.31% |
| Dec 31, 2018 | 11.86% | 7.37% |
| Dec 31, 2017 | -1.46% | 9.20% |
| Dec 31, 2016 | -6.65% | 6.11% |
| Dec 31, 2015 | -8.09% | 5.83% |
| Dec 31, 2014 | -10.35% | 4.97% |
| Dec 31, 2013 | -19.17% | 5.86% |
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).