Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Short-term (Operating) Activity Ratios
- Common Stock Valuation Ratios
- Selected Financial Data since 2013
- Net Profit Margin since 2013
- Return on Equity (ROE) since 2013
- Total Asset Turnover since 2013
- Price to Operating Profit (P/OP) since 2013
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Twitter Inc., long-term (investment) activity ratios
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows a declining trend over the analyzed period. Starting at 3.16 in 2017, it increased slightly to 3.44 in 2018 before decreasing steadily to 2.44 by 2021. This suggests a reduction in the efficiency with which fixed assets are being used to generate sales.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- This ratio also decreased notably over the years, from 3.16 in 2017 and 3.44 in 2018 down to 1.55 in 2021. The sharp decline, particularly after 2018, indicates that when incorporating operating leases and right-of-use assets, asset utilization efficiency has diminished even more significantly. This may reflect changes in asset structure or leasing strategies.
- Total Asset Turnover
- The total asset turnover ratio exhibits slight fluctuations but an overall mild improvement by the end of the period. It started at 0.33 in 2017, decreased slightly to 0.27 in 2019, and then increased to 0.36 in 2021. This implies a gradual improvement in utilizing total assets to generate revenue after a period of lower turnover.
- Equity Turnover
- The equity turnover ratio shows a declining trend initially but then rises sharply towards the end of the period. Beginning at 0.48 in 2017, it decreased to 0.4 in 2019 but then increased to 0.69 in 2021. This indicates an improvement in the efficiency of equity use in revenue generation in the later years, possibly due to changes in equity structure or revenue growth dynamics.
Net Fixed Asset Turnover
Twitter Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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 2021 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue demonstrated a consistent upward trend over the five-year period, increasing from $2,443,299 thousand in 2017 to $5,077,482 thousand in 2021. This represents more than a twofold increase, indicating robust top-line growth year over year, with the largest absolute increase occurring between 2020 and 2021.
- Property and Equipment, Net
- The net value of property and equipment also showed a steady increase from $773,715 thousand in 2017 to $2,082,160 thousand in 2021. This growth suggests ongoing investment in fixed assets, with a particularly notable acceleration in asset acquisition or capitalization starting in 2019 and continuing through 2021.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which indicates the efficiency of fixed assets in generating revenue, exhibited a downward trend over the period analyzed. Starting at 3.16 in 2017, it slightly increased to 3.44 in 2018 and then gradually declined to 2.44 by 2021. Despite rising revenue and increased fixed assets, this ratio's decline suggests that asset growth outpaced revenue growth in the later years, reflecting potential decreased efficiency or greater capital intensity.
- Overall Insights
- The data illustrates significant revenue growth accompanied by substantial investment in fixed assets. However, the declining asset turnover ratio implies that the company may be becoming more capital intensive, with fixed assets growing faster than revenue generation capacity. This pattern could warrant further investigation into the utilization of new assets and operational efficiency improvements.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Twitter Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | ||||||
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 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue demonstrated a consistent upward trajectory over the five-year period. Starting at approximately 2.44 billion US dollars in the year ending December 31, 2017, revenue increased steadily each year, reaching nearly 5.08 billion US dollars by the end of 2021. The growth rate intensified notably in the final year, reflecting a significant expansion of operations or market demand.
- Property and Equipment, Net
- The net value of property and equipment, which includes operating lease and right-of-use assets, exhibited a substantial increase over the analyzed timeframe. Beginning at around 774 million US dollars in 2017, the asset base more than quadrupled to exceed 3.27 billion US dollars by the end of 2021. This trend indicates substantial investment in physical and leased assets, potentially supporting the company's growth and operational capacity.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio experienced a declining trend throughout the period. Starting at a relatively high level of 3.16 in 2017, the ratio increased slightly to 3.44 in 2018 but thereafter decreased sharply to 2.00 in 2019, and further to approximately 1.53 by 2020, before stabilizing around 1.55 in 2021. This decline suggests that the company's revenue generation relative to its net fixed assets diminished, which could indicate heavier investment in assets that have yet to fully contribute to revenue or reduced efficiency in asset utilization.
- Overall Insights
- The data reveals a company undergoing significant expansion in asset base and revenue. While revenue growth is strong, the decreasing net fixed asset turnover ratio points to challenges in maintaining asset efficiency or a lag in revenue generation from recent investments. The marked increase in property and equipment suggests strategic developments requiring considerable capital expenditure, likely aimed at fostering future revenue growth.
Total Asset Turnover
Twitter Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Total Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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 2021 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates a consistent upward trajectory in revenue over the five-year period, with values growing from approximately $2.44 billion in 2017 to about $5.08 billion in 2021. This represents more than a twofold increase, suggesting successful revenue enhancement efforts or market expansion.
Total assets have also displayed a steady increase year on year, rising from $7.41 billion at the end of 2017 to roughly $14.06 billion by the end of 2021. This growth suggests ongoing investment or acquisition activity, reflecting asset base expansion to support business operations.
The total asset turnover ratio, which measures the efficiency of asset use in generating revenue, shows a slight decline from 0.33 in 2017 to 0.27 in 2019. This decreasing trend could indicate a reduction in efficiency or capital intensity increasing more rapidly than revenue. However, from 2019 onward, the ratio rebounds to 0.28 in 2020 and further up to 0.36 in 2021, surpassing the initial 2017 level. This improvement in asset turnover in the last two years suggests enhanced operational efficiency or more effective asset utilization contributing to revenue generation.
- Revenue
- Steady increase each year, more than doubling from 2017 to 2021.
- Total Assets
- Continuous growth, nearly doubling over the five years, indicating expansion of asset base.
- Total Asset Turnover
- Initial decline from 2017 to 2019, followed by recovery and improvement in 2020 and 2021, indicating varying asset utilization efficiency over the period.
Equity Turnover
Twitter Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Equity Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Equity Turnover, Industry | ||||||
| Communication Services | ||||||
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 2021 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates several notable trends over the five-year period.
- Revenue
- Revenue has shown a consistent upward trend from 2017 to 2021, increasing from approximately $2.44 billion to $5.08 billion. The growth is steady each year, with a marked acceleration in 2021 where revenue jumped significantly compared to prior years.
- Stockholders’ Equity
- Stockholders’ equity grew from about $5.05 billion in 2017 to a peak of approximately $8.7 billion in 2019, followed by a decline in the subsequent two years, reaching roughly $7.31 billion in 2021. This indicates an initial phase of equity strengthening succeeded by a contraction in equity levels.
- Equity Turnover Ratio
- The equity turnover ratio, a measure of revenue generated per unit of equity, started at 0.48 in 2017, declined to a low of 0.40 in 2019, then rose again to 0.69 by 2021. The low point in 2019 corresponds to the peak in stockholders’ equity, while the increase thereafter suggests improved efficiency in generating revenue from the equity base, particularly notable in the final year analyzed.
Overall, the data reveals that revenue growth outpaced the changes in equity in later years, resulting in higher equity turnover. The decline in equity after 2019 alongside a rising equity turnover ratio may suggest a strategic recalibration of capital structure or changes in profitability and asset utilization.