Twitter Inc. (NYSE:TWTR)

The analyzed data reveals distinct trends in the financial performance and structure over the observed quarters.

Return on Assets (ROA)

ROA showed initial volatility, with negative values in early data points followed by a notable increase peaking at 18.81% in September 2019. Subsequently, it trended downward, turning negative again in early 2020 and remaining below zero for several quarters, indicating a period of reduced asset profitability. A mild recovery is observed toward mid-2021, but the values fluctuate around zero, reflecting inconsistent asset returns.

Financial Leverage

Financial leverage ratios remained relatively stable around 1.47 during 2017, then experienced gradual increases over the years. Starting at approximately 1.45 in early 2018, it peaked at 2.29 by mid-2022. This upward trend suggests an increasing reliance on debt financing or liabilities relative to equity, indicating a shift toward higher financial risk or capital structure leverage.

Return on Equity (ROE)

ROE mirrored the pattern observed with ROA, albeit with more pronounced fluctuations. Initial negative ROE in early periods changed to significant positive returns, reaching a high of 28.22% in September 2019. Following this peak, ROE sharply declined into negative territory through 2020 and parts of 2021, illustrating diminished shareholder returns and potential operational challenges. There is evidence of some recovery toward the end of the timeline, though values again show volatility.

Overall, the data indicates a cycle of improving profitability and return measures up to late 2019, followed by a period of downturn and instability throughout 2020 and 2021. Financial leverage steadily increased, which could amplify risks associated with the observed volatility in profitability metrics. The interplay between rising leverage and fluctuating returns highlights a potentially challenging financial environment during the latter periods.

Net Profit Margin

The net profit margin exhibited considerable volatility over the analyzed periods. Initially, it was negative at -4.42% in December 2017, then improved significantly, reaching a peak of 71.46% in September 2019. This peak was followed by a gradual decline through 2019 and early 2020, before turning sharply negative from March 2020 onwards, with the lowest value around -37.06% in March 2020. After this nadir, the margin showed partial recovery with fluctuations, ending slightly negative at -2.14% in June 2022. The margin trends suggest periods of strong profitability interrupted by significant downturns, particularly during 2020.

Asset Turnover

Asset turnover ratios were generally low throughout the periods, ranging approximately between 0.26 and 0.39. The ratio remained relatively stable from late 2017 through 2020, hovering near 0.26 to 0.29, indicating consistent efficiency in utilizing assets to generate revenue. From March 2021 onwards, there was a noticeable increasing trend, rising from 0.28 to 0.39 by June 2022, suggesting an improvement in asset utilization efficiency in the more recent quarters.

Financial Leverage

Financial leverage showed a gradual upward trend over the examined quarters. Starting at about 1.47 in early 2017, it increased steadily, with occasional small fluctuations, reaching 2.29 by June 2022. The rising leverage ratio indicates an increasing reliance on debt financing or other liabilities relative to equity, which may imply a higher risk profile but also potential for amplified returns.

Return on Equity (ROE)

The return on equity followed a pattern broadly similar to the net profit margin, reflecting profitability trends. Initial values were negative or near zero, transitioning to positive figures peaking at 28.22% in September 2019. Subsequently, ROE decreased sharply, turning significantly negative starting in early 2020, with the lowest point around -16.08% in March 2020. Post this period, modest recoveries were observed but with continued volatility, and ROE ended near -1.88% in June 2022. This indicates unstable returns to shareholders, with periods of strong performance interrupted by considerable losses, particularly around the 2020 timeframe.

The financial data reveals several notable trends and fluctuations in key profitability and efficiency ratios over the reported periods.

Tax Burden

This ratio displays considerable volatility. Starting from a value of 0.54 in early 2018, it increases sharply, peaking significantly at 4.93 by mid-2019. Afterwards, it experiences a decrease with some fluctuations, reaching a substantial negative value of -72.55 in mid-2021, before returning to a moderate positive level of 0.61 by mid-2022. The marked negative spike suggests an extraordinary event or accounting adjustment impacting tax expenses during that period.

Interest Burden

The interest burden ratio shows extreme variability, with large negative values around late 2017 and mid-2020 (-9.72 and -2.68, respectively), indicating periods of significant interest expense relative to earnings before interest and taxes. Although the ratio stabilizes somewhat between 2018 and early 2019, it remains generally low and occasionally negative, reflecting burdensome interest costs or financial distress during several quarters. The ratio improves towards mid-2022 but still includes notable fluctuations.

EBIT Margin

The EBIT margin improves markedly from a modest 0.4% in late 2017 to a peak near 19.1% by late 2018, indicating strong operating profitability gains. However, following this peak, the margin declines steadily to very low levels around 0.65% by the end of 2020, reflecting diminished operating efficiency or rising costs. There is partial recovery to 11.05% by late 2021, but the margin turns negative in early 2022 before recouping to 8.03% by late 2022, suggesting uneven operational performance during recent periods.

Asset Turnover

Asset turnover remains relatively stable across the timeline, fluctuating narrowly between approximately 0.26 and 0.39. A slight upward trend is visible in the later quarters, especially during 2021 and 2022, moving from around 0.28 up to 0.39. This suggests a modest improvement in the efficiency with which assets generate revenue over time.

Financial Leverage

Financial leverage increases notably over the assessed periods, from roughly 1.47 in early 2017 to about 2.29 by mid-2022. This rise indicates a growing reliance on debt or other forms of financial borrowing to finance assets, which could increase financial risk but also potentially amplify returns if managed effectively.

Return on Equity (ROE)

Return on equity demonstrates significant volatility. It starts at negative values around -2.14% in late 2017 but climbs impressively to a peak of 28.22% by late 2019, reflecting strong profitability and efficient use of shareholder capital during that time. Post-2019, the ROE deteriorates sharply into negative territory, with sustained negative returns through most of 2020 and 2021, indicating operating or financial struggles. There is a modest recovery toward positive ROE by late 2021 and early 2022, albeit with lingering negative figures shortly thereafter in 2022, suggesting ongoing challenges in generating shareholder value consistently.

Overall, the data portrays a pattern of early profitability growth followed by significant operational and financial challenges from 2020 onwards. The increase in financial leverage alongside fluctuating interest burdens and inconsistent tax impact points toward heightened financial risk. Efficiency in asset utilization remained stable, with minor improvements recently. Profitability, particularly on equity, has experienced strong swings, indicative of periods of both robust performance and notable distress.

Net Profit Margin

The net profit margin exhibits notable volatility throughout the observed periods. Initially, the margin was negative at -4.42% in December 2017, followed by a positive turnaround beginning March 2018, reaching a peak of 71.46% in September 2019. This peak indicates a period of strong profitability. Subsequently, the margin declined steadily but remained positive until March 2020, where it sharply reversed to negative figures, hitting a low of -37.06%. This negative trend persisted through 2020 and into early 2021, with minor improvements but no sustained positive rebound. By mid-2022, the margin again approaches near zero with fluctuations between slight positive and negative values, indicating ongoing instability in profitability.

Asset Turnover

Asset turnover remained relatively stable over the period, fluctuating slightly between 0.26 and 0.39. Early values recorded from March 2018 reflect ratios around 0.3, with minor declines observed into 2020 and early 2021, dipping to as low as 0.26. From late 2021 onward, there is a gradual increase in asset turnover, reaching 0.39 by mid-2022. Overall, this suggests a modest improvement in the efficiency of asset utilization towards the end of the period analyzed.

Return on Assets (ROA)

The return on assets generally mirrors the variability seen in net profit margin. Starting at a negative -1.46% in December 2017, the ratio gradually climbs into positive territory through 2018 and 2019, reaching a peak of 18.81% in September 2019. Following this peak, ROA declines sharply and turns negative again in March 2020, with the lowest figure recorded at -9.81%. The negative trend continues but shows some moderation toward late 2021 and early 2022, moving closer to zero and briefly becoming positive at 1.65% in December 2021 before declining slightly again. This pattern indicates fluctuating profitability relative to assets, with a strong period followed by deterioration and partial recovery attempts.

Tax Burden

The tax burden ratio shows significant volatility over the analyzed periods. Starting with values around 0.54 in early 2018, it experienced steep increases, reaching highs above 4 in late 2019. Subsequently, there was an extreme negative value near -72.55 in mid-2021, indicating an unusual tax event or significant anomaly. Periods adjacent to this anomaly reflect a return to more moderate ratios, around 0.61 in the first half of 2022, suggesting recovery towards normalized tax burden levels.

Interest Burden

The interest burden ratio presents considerable fluctuations, initially displaying negative values indicating potential interest income or unusual interest-related gains. From 2017 to mid-2019, the ratio hovered near 0.7, demonstrating moderate consistency. However, starting in late 2019 through early 2021, it plunged into negative territory again, including values as low as -5.26 and -3.76, signifying periods of financial strain or unusual interest expenses or incomes. The most recent figures in mid-2022 indicate a rebound to positive values close to 0.87, marking some financial stabilization concerning interest costs.

EBIT Margin

The EBIT margin shows an overall positive trending pattern from early 2017 to late 2019, growing steadily from negligible or slightly positive margins to a peak of approximately 19.1% in mid-2019, indicating improved operational profitability. This upward trend reverses markedly in 2020, with margins declining sharply to near 0.65% by the end of that year, reflecting diminished earnings capacity. Early 2021 shows some recovery to double digits (above 11%), but the final quarters of 2021 and into 2022 observe renewed declines, even dipping below zero temporarily. The fluctuation suggests operational challenges impacting profitability intermittently.

Asset Turnover

Asset turnover ratios remained relatively stable across the examined periods, fluctuating slightly between 0.26 and 0.39. The measure shows minor declines from around 0.33 in early 2017 to lows near 0.26 in 2020, which may imply decreased efficiency in asset utilization during that period. Toward mid-2021 and into 2022, there is a gentle upward trajectory, reaching approximately 0.39, indicating a gradual improvement in the efficiency of generating revenue from assets.

Return on Assets (ROA)

The ROA exhibits considerable volatility over time. Initial periods through 2017 and early 2018 show negative or marginally positive ROA, transitioning to a strong upward trend peaking at nearly 18.81% in late 2019, which signals effective asset utilization and profitability. A notable downturn follows beginning in 2020, with ROA falling sharply into negative territory, hitting close to -9.81%. Recovery phases appear sporadic, with some mild gains in early 2021 but failing to stabilize sustainably. The pattern reflects sensitivity to operational performance changes, economic conditions, or extraordinary events affecting asset returns during the timeframe.

The financial data over the analyzed periods reveal considerable volatility and fluctuations in the key profitability and burden ratios.

Tax Burden

Initially, values are missing, but beginning in early 2018, the tax burden ratio exhibits significant variability, ranging from moderate values around 0.54 to spikes above 4.5. An extreme negative value (-72.55) is observed in mid-2021, indicating unusual tax-related occurrences during that quarter. The ratio settles to lower positive levels towards mid-2022, reflecting a normalization in tax impact.

Interest Burden

This ratio also shows instability. Early data points are absent or negative, suggesting potential interest-related losses or accounting adjustments. From mid-2017 to 2019, the ratio stabilizes near 0.7-0.8, indicating manageable interest expenses relative to operating income. However, in late 2020 and mid-2021, sharp declines to negative values occur, which may imply high interest costs or unusual financial expenses, followed by a rebound towards positive values near 0.87 by mid-2022.

EBIT Margin

The EBIT margin depicts an overall upward trend from 0.4% in early 2017 to a peak above 19% in late 2018 and early 2019, signifying improving operational profitability. Subsequently, it declines markedly throughout 2020 to a low below 1%, demonstrating deteriorated earnings before interest and taxes during that period. A modest recovery starts in late 2020 and continues into 2021, reaching over 11% before dropping again by early 2022, indicating inconsistent earnings performance.

Net Profit Margin

Net profitability follows a fluctuating path with substantial swings. It starts negative in late 2017 (-4.42%), then shows strong improvement and peaks dramatically at over 71% by late 2019, reflecting periods of exceptional net earnings. This peak is followed by a sharp decline to negative margins around -37% during 2020, suggesting significant net losses in that timeframe. A gradual improvement occurs afterward, with minor positive margins resuming by 2022, though still showing instability and vulnerability to operational and financial pressures.

Overall, the company experienced phases of robust profitability around 2018-2019, followed by pronounced declines in 2020 coinciding with increased tax and interest burdens. The data indicate challenges impacting both operational efficiency and net earnings, with partial recovery signs near the end of the analyzed period. These fluctuations highlight susceptibility to external and internal factors affecting earnings sustainability and cost management.