Return on Equity (ROE)
since 2013
Calculation
Twitter Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | -3.03% | = | 100 | × | (221,409) | ÷ | 7,307,199) |
| Dec 31, 2020 | -14.25% | = | 100 | × | (1,135,626) | ÷ | 7,970,082) |
| Dec 31, 2019 | 16.84% | = | 100 | × | 1,465,659) | ÷ | 8,704,386) |
| Dec 31, 2018 | 17.71% | = | 100 | × | 1,205,596) | ÷ | 6,805,594) |
| Dec 31, 2017 | -2.14% | = | 100 | × | (108,063) | ÷ | 5,047,218) |
| Dec 31, 2016 | -9.92% | = | 100 | × | (456,873) | ÷ | 4,604,935) |
| Dec 31, 2015 | -11.93% | = | 100 | × | (521,031) | ÷ | 4,368,047) |
| Dec 31, 2014 | -15.93% | = | 100 | × | (577,820) | ÷ | 3,626,403) |
| Dec 31, 2013 | -21.88% | = | 100 | × | (645,323) | ÷ | 2,950,006) |
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 performance from 2013 to 2021 is characterized by significant volatility in profitability, which directly influenced the Return on Equity (ROE). A cyclical pattern is evident, moving from sustained losses to a brief period of profitability before returning to a deficit position.
- Profitability Trends
- Net income remained negative from 2013 through 2017, although the magnitude of losses narrowed consistently from $645.3 million to $108.1 million. A sharp reversal occurred in 2018 and 2019, with net income reaching peaks of $1.2 billion and $1.47 billion respectively. However, this positive trend reversed in 2020, resulting in a net loss of $1.14 billion, followed by a reduced loss of $221.4 million in 2021.
- Equity Position
- Stockholders' equity exhibited a steady upward trajectory for the majority of the period, growing from $2.95 billion in 2013 to a peak of $8.7 billion in 2019. This consistent accumulation suggests capital retention or infusions during the growth phase. A decline followed in 2020 and 2021, with equity falling to $7.31 billion by the end of the period.
- Return on Equity (ROE) Analysis
- ROE mirrored the fluctuations in net income. Between 2013 and 2017, ROE improved from -21.88% to -2.14%, reflecting a reduction in losses relative to the equity base. The period of profitability in 2018 and 2019 saw ROE surge to 17.71% and 16.84%. The subsequent drop in 2020 to -14.25% indicates a significant impact on shareholder returns during that fiscal year, though the ratio improved to -3.03% by 2021 as net losses narrowed.
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Comparison to Competitors
Twitter Inc., ROE, long-term trends, comparison to competitors
| Twitter Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2021 | -3.03% | 30.22% | 14.73% | 31.53% | 32.28% | 2.25% |
| Dec 31, 2020 | -14.25% | 18.09% | 11.66% | 22.72% | 24.96% | -3.43% |
| Dec 31, 2019 | 16.84% | 17.05% | 15.78% | 18.29% | 24.62% | 12.44% |
| Dec 31, 2018 | 17.71% | 17.30% | 16.38% | 26.28% | 23.12% | 25.83% |
| Dec 31, 2017 | -2.14% | 8.30% | 33.11% | 21.43% | 15.60% | 21.74% |
| Dec 31, 2016 | -9.92% | 14.01% | 16.12% | 17.26% | 6.97% | 21.71% |
| Dec 31, 2015 | -11.93% | 13.59% | 15.62% | 8.34% | 5.52% | 18.83% |
| Dec 31, 2014 | -15.93% | 13.82% | 15.90% | 8.14% | 14.36% | 16.68% |
| Dec 31, 2013 | -21.88% | 14.80% | 13.45% | 9.70% | 8.43% | 13.51% |
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., ROE, long-term trends, comparison to sector (media & entertainment)
| Twitter Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2021 | -3.03% | 23.69% |
| Dec 31, 2020 | -14.25% | 14.90% |
| Dec 31, 2019 | 16.84% | 16.36% |
| Dec 31, 2018 | 17.71% | 20.24% |
| Dec 31, 2017 | -2.14% | 17.88% |
| Dec 31, 2016 | -9.92% | 16.09% |
| Dec 31, 2015 | -11.93% | 13.93% |
| Dec 31, 2014 | -15.93% | 13.96% |
| Dec 31, 2013 | -21.88% | 13.73% |
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., ROE, long-term trends, comparison to industry (communication services)
| Twitter Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2021 | -3.03% | 20.34% |
| Dec 31, 2020 | -14.25% | 11.50% |
| Dec 31, 2019 | 16.84% | 15.27% |
| Dec 31, 2018 | 17.71% | 17.89% |
| Dec 31, 2017 | -2.14% | 22.85% |
| Dec 31, 2016 | -9.92% | 16.35% |
| Dec 31, 2015 | -11.93% | 16.38% |
| Dec 31, 2014 | -15.93% | 14.00% |
| Dec 31, 2013 | -21.88% | 16.63% |
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).