Stock Analysis on Net

Twitter Inc. (NYSE:TWTR)

This company has been moved to the archive! The financial data has not been updated since July 26, 2022.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Twitter Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 (387,636) 17,546 382,306 442,934 (73,949)
Invested capital2 7,449,784 5,970,409 5,287,225 5,185,025 4,627,898
Performance Ratio
ROIC3 -5.20% 0.29% 7.23% 8.54% -1.60%
Benchmarks
ROIC, Competitors4
Alphabet Inc. 52.45% 33.62% 32.72%
Charter Communications Inc. 7.13% 5.44% 3.89%
Comcast Corp. 8.38% 6.52% 8.40%
Meta Platforms Inc. 43.26% 34.56% 27.63%
Netflix Inc. 17.47% 12.41% 10.33%
Walt Disney Co. 1.28% -1.18% 9.58% 15.32%

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).

1 NOPAT. See details »

2 Invested capital. See details »

3 2021 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × -387,636 ÷ 7,449,784 = -5.20%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Twitter Inc. ROIC deteriorated from 2019 to 2020 and from 2020 to 2021.

Decomposition of ROIC

Twitter Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Dec 31, 2021 -5.20% = -6.60% × 0.68 × 100.00%
Dec 31, 2020 0.29% = 1.60% × 0.62 × 29.55%
Dec 31, 2019 7.23% = 12.38% × 0.66 × 88.49%
Dec 31, 2018 8.54% = 15.41% × 0.59 × 94.14%
Dec 31, 2017 -1.60% = -1.19% × 0.53 × 100.00%

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).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2021 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Twitter Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 (387,636) 17,546 382,306 442,934 (73,949)
Add: Cash operating taxes2 51,562 41,833 49,720 27,591 44,987
Net operating profit before taxes (NOPBT) (336,074) 59,379 432,026 470,525 (28,961)
 
Revenue 5,077,482 3,716,349 3,459,329 3,042,359 2,443,299
Add: Increase (decrease) in deferred revenue 17,223 (6,809) 30,051 11,125 (5,835)
Adjusted revenue 5,094,705 3,709,540 3,489,380 3,053,484 2,437,464
Profitability Ratio
OPM3 -6.60% 1.60% 12.38% 15.41% -1.19%
Benchmarks
OPM, Competitors4
Alphabet Inc. 34.97% 25.81% 23.20%
Charter Communications Inc. 20.18% 17.10% 13.71%
Comcast Corp. 20.21% 18.80% 20.42%
Meta Platforms Inc. 40.15% 38.27% 34.39%
Netflix Inc. 22.76% 16.83% 14.43%
Walt Disney Co. 5.56% -1.10% 24.76% 26.38%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2021 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenue
= 100 × -336,074 ÷ 5,094,705 = -6.60%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Twitter Inc. OPM deteriorated from 2019 to 2020 and from 2020 to 2021.

Turnover of Capital (TO)

Twitter Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Revenue 5,077,482 3,716,349 3,459,329 3,042,359 2,443,299
Add: Increase (decrease) in deferred revenue 17,223 (6,809) 30,051 11,125 (5,835)
Adjusted revenue 5,094,705 3,709,540 3,489,380 3,053,484 2,437,464
 
Invested capital1 7,449,784 5,970,409 5,287,225 5,185,025 4,627,898
Efficiency Ratio
TO2 0.68 0.62 0.66 0.59 0.53
Benchmarks
TO, Competitors3
Alphabet Inc. 1.74 1.49 1.61
Charter Communications Inc. 0.39 0.36 0.33
Comcast Corp. 0.51 0.46 0.50
Meta Platforms Inc. 1.27 1.06 1.08
Netflix Inc. 0.86 0.85 0.84
Walt Disney Co. 0.39 0.37 0.42 0.75

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).

1 Invested capital. See details »

2 2021 Calculation
TO = Adjusted revenue ÷ Invested capital
= 5,094,705 ÷ 7,449,784 = 0.68

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Twitter Inc. TO deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Effective Cash Tax Rate (CTR)

Twitter Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 (387,636) 17,546 382,306 442,934 (73,949)
Add: Cash operating taxes2 51,562 41,833 49,720 27,591 44,987
Net operating profit before taxes (NOPBT) (336,074) 59,379 432,026 470,525 (28,961)
Tax Rate
CTR3 70.45% 11.51% 5.86%
Benchmarks
CTR, Competitors4
Alphabet Inc. 13.97% 12.78% 12.46%
Charter Communications Inc. 10.54% 11.92% 14.79%
Comcast Corp. 18.38% 25.15% 18.36%
Meta Platforms Inc. 15.37% 15.06% 25.65%
Netflix Inc. 10.36% 12.87% 14.95%
Walt Disney Co. 41.25% 7.41% 22.17%

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).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2021 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 51,562 ÷ -336,074 =

4 Click competitor name to see calculations.