Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Twitter Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Gross profit margin
- The gross profit margin showed a generally declining trend over the period analyzed. Starting at 66.26% in early 2018, it peaked slightly above 68% during late 2018 and the first half of 2019. From mid-2019 onwards, the margin gradually decreased, reaching 60.84% by mid-2022. This persistent decline indicates increasing costs relative to revenue or potential pricing pressures affecting profitability at the gross level.
- Operating profit margin
- The operating profit margin experienced significant fluctuations with an initial upward trend from 6.01% in early 2018 to a peak near 14.92% in the first quarter of 2019. However, after this peak, a steady decline ensued, turning negative in mid-2020. Despite a modest recovery toward positive figures in early 2021, the margin again declined sharply, ending at -20.02% by mid-2022. The volatility and eventual decline into negative territory suggest increased operating costs or deteriorating operating efficiency during the latter period.
- Net profit margin
- The net profit margin showed high volatility as well. It started with low single-digit profitability in early 2018, surged dramatically to peaks exceeding 70% in mid-2019, likely reflecting extraordinary gains or accounting effects. Following this peak, a sharp and sustained decline occurred, dipping into large losses between mid-2020 and late 2021. A slight return to marginal profitability appeared in early 2022 but subsequently reversed with losses again recorded by mid-2022. The large swings indicate significant variability in net income drivers and possibly one-time items impacting the bottom line adversely in recent periods.
- Return on equity (ROE)
- The ROE trajectory mirrors the net profit margin pattern, beginning near zero in early 2018, rising to nearly 28% at its high point in mid-2019, and then falling sharply into negative territory by mid-2020. Although there was a modest improvement around early 2021, ROE remained negative for most of the subsequent period, concluding slightly below zero by mid-2022. This pattern suggests challenges in generating shareholder returns during the latter periods, correlating with the adverse net profit trends.
- Return on assets (ROA)
- ROA followed a comparable trend to ROE, beginning at 0.19% in early 2018 and rising to almost 19% in mid-2019. From late 2019, a gradual decline turned into notable negative returns by mid-2020, with slight recoveries but predominantly negative outcomes through mid-2022. This decline reflects diminishing efficiency in asset utilization to generate profits over time, aligning with the observed negative net income experiments.
Return on Sales
Return on Investment
Gross Profit Margin
Twitter Inc., gross profit margin calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Gross profit | 635,984) | 693,534) | 1,052,129) | 799,338) | 773,495) | 655,010) | 856,117) | 574,845) | 395,399) | 523,600) | 693,333) | 542,660) | 563,416) | 522,879) | 640,491) | 514,467) | 480,356) | 442,048) | ||||||
| Revenue | 1,176,660) | 1,200,984) | 1,567,220) | 1,283,817) | 1,190,427) | 1,036,018) | 1,289,041) | 936,233) | 683,438) | 807,637) | 1,007,341) | 823,717) | 841,381) | 786,890) | 908,836) | 758,111) | 710,541) | 664,871) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Gross profit margin1 | 60.84% | 63.30% | 64.60% | 64.26% | 64.23% | 62.90% | 63.23% | 63.68% | 64.87% | 66.75% | 67.13% | 67.53% | 68.02% | 68.20% | 68.28% | 68.08% | 67.33% | 66.26% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 56.74% | 56.93% | 56.94% | 56.51% | 55.72% | 54.32% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | 67.34% | 66.64% | 66.96% | 66.59% | 66.81% | 67.61% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 80.47% | 80.34% | 80.79% | 80.85% | 80.98% | 80.55% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | 40.63% | 41.62% | 41.64% | 43.22% | 42.29% | 41.10% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | 81.88% | 81.82% | 81.48% | 81.59% | 80.91% | 78.88% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | 33.79% | 34.34% | 33.06% | 31.12% | 30.65% | 29.85% | 32.89% | 35.96% | 36.60% | 38.72% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2022 Calculation
Gross profit margin = 100
× (Gross profitQ2 2022
+ Gross profitQ1 2022
+ Gross profitQ4 2021
+ Gross profitQ3 2021)
÷ (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
= 100 × (635,984 + 693,534 + 1,052,129 + 799,338)
÷ (1,176,660 + 1,200,984 + 1,567,220 + 1,283,817)
= 60.84%
2 Click competitor name to see calculations.
- Revenue
- The revenue exhibited a general upward trend from March 2018 to December 2021, rising from approximately $665 million to about $1.57 billion. The growth shows some quarter-to-quarter fluctuations; however, the overall trajectory is positive through this period. Starting in the first quarter of 2022, there is a noticeable decline in revenue, dropping to approximately $1.2 billion in the first half of 2022.
- Gross Profit
- Gross profit also followed an increasing trend aligned with revenue growth from March 2018, increasing from roughly $442 million to a peak of about $1.05 billion by December 2021. Similar to revenue, gross profit shows variability within quarters but maintains an overall upward momentum until the end of 2021. Subsequently, it declines in the early quarters of 2022, falling below $700 million.
- Gross Profit Margin
- The gross profit margin percentage illustrates a gradual decline over the period reviewed. Initially, in early 2018, margins hovered above 66%, reaching as high as 68.28% in late 2018. After that peak, there is a persistent downward trend with margins fluctuating but consistently decreasing to around 60.84% by mid-2022. This indicates increasing costs or reduced pricing power relative to revenue during the later periods examined.
- Insights
- While revenue and gross profit demonstrated strong growth until late 2021, the declining gross profit margin suggests erosion of profitability efficiency. The decrease in both revenue and gross profit in 2022 may signal emerging challenges such as market competition, increased operational costs, or shifts in demand dynamics. The reduction in gross profit margin concurrent with the drop in revenue underlines pressures on maintaining profitability despite historically rising sales figures.
Operating Profit Margin
Twitter Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Income (loss) from operations | (343,762) | (127,833) | 167,375) | (742,548) | 30,252) | 52,182) | 251,924) | 56,107) | (273,930) | (7,443) | 152,884) | 44,145) | 75,686) | 93,658) | 206,908) | 91,868) | 79,624) | 74,925) | ||||||
| Revenue | 1,176,660) | 1,200,984) | 1,567,220) | 1,283,817) | 1,190,427) | 1,036,018) | 1,289,041) | 936,233) | 683,438) | 807,637) | 1,007,341) | 823,717) | 841,381) | 786,890) | 908,836) | 758,111) | 710,541) | 664,871) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | -20.02% | -12.83% | -9.70% | -8.51% | 8.77% | 2.19% | 0.72% | -2.11% | -2.54% | 7.62% | 10.59% | 12.51% | 14.21% | 14.92% | 14.90% | 12.44% | 10.08% | 6.01% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 29.65% | 30.47% | 30.55% | 30.30% | 28.45% | 25.26% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | 18.25% | 17.76% | 17.89% | 17.51% | 17.01% | 16.97% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 33.41% | 36.68% | 39.65% | 41.79% | 42.52% | 40.42% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | 19.13% | 20.41% | 20.86% | 22.76% | 22.03% | 21.17% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | 2.86% | 7.74% | 10.43% | 22.90% | 21.14% | 15.78% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | 7.08% | 6.93% | 4.46% | 2.60% | -7.99% | -7.37% | -2.97% | 1.25% | 10.76% | 13.22% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2022 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ2 2022
+ Income (loss) from operationsQ1 2022
+ Income (loss) from operationsQ4 2021
+ Income (loss) from operationsQ3 2021)
÷ (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
= 100 × (-343,762 + -127,833 + 167,375 + -742,548)
÷ (1,176,660 + 1,200,984 + 1,567,220 + 1,283,817)
= -20.02%
2 Click competitor name to see calculations.
- Revenue Trends
- Revenue exhibited a general upward trend from the first quarter of 2018 through the end of 2021, starting at approximately 665 million USD and reaching over 1.5 billion USD by the first quarter of 2022. Notable peaks occurred in the final quarters of 2018, 2020, and 2021, corresponding to seasonal or business cycle variations. However, fluctuations are notable in 2020, where a decline is visible in the second quarter, likely reflecting external economic challenges. Revenue continued to decrease slightly into mid-2022.
- Operating Income (Loss)
- Operating income showed variability across quarters, with significant positive results through 2018 and early 2019, peaking at approximately 207 million USD at the end of 2018. Subsequently, operating income exhibited a downward trend with intermittent recoveries, turning negative in early 2020. The second quarter of 2020 showed a substantial loss nearing 274 million USD, followed by recovery periods, notably at the end of 2020 and into early 2021. From late 2021 onward, there was a marked deterioration in operating results, culminating in significant operating losses, especially toward mid-2022.
- Operating Profit Margin Analysis
- The operating profit margin generally followed the trend of operating income but displayed notable volatility. Starting around 6% in early 2018, the margin improved steadily, reaching a high of roughly 15% at the end of 2018. Margins decreased gradually through 2019 and sharply declined in 2020, including entering negative territory in the second and third quarters of 2020. A brief positive margin was observed at the end of 2020, followed by moderate improvement in the first half of 2021. Thereafter, the margin again declined substantially, with the most acute negative margins appearing by mid-2022, indicating considerable operating inefficiency or increased costs relative to revenues during this period.
- Summary Insights
- Overall, the data suggest that the company experienced robust revenue growth over the majority of the period analyzed, with corresponding profitability peaks in 2018. However, from 2019 onward, despite continued revenue increases, operating profitability became more volatile and generally declined, turning negative in multiple quarters particularly in 2020 and again in late 2021 through 2022. This may indicate rising costs, operational challenges, or investments affecting short-term profitability. The sharp negative margins in 2022 highlight a period of financial stress or restructuring impacting operating results.
Net Profit Margin
Twitter Inc., net profit margin calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net income (loss) | (270,007) | 513,286) | 181,694) | (536,757) | 65,649) | 68,005) | 222,116) | 28,659) | (1,378,005) | (8,396) | 118,773) | 36,522) | 1,119,560) | 190,804) | 255,303) | 789,179) | 100,117) | 60,997) | ||||||
| Revenue | 1,176,660) | 1,200,984) | 1,567,220) | 1,283,817) | 1,190,427) | 1,036,018) | 1,289,041) | 936,233) | 683,438) | 807,637) | 1,007,341) | 823,717) | 841,381) | 786,890) | 908,836) | 758,111) | 710,541) | 664,871) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | -2.14% | 4.27% | -4.36% | -3.77% | 8.64% | -26.85% | -30.56% | -36.07% | -37.06% | 36.39% | 42.37% | 47.67% | 71.46% | 42.20% | 39.63% | 36.35% | 8.57% | 0.57% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 25.89% | 27.57% | 29.51% | 29.52% | 28.57% | 26.11% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | 11.54% | 11.96% | 12.17% | 12.73% | 11.44% | 11.25% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 28.16% | 31.20% | 33.38% | 35.88% | 37.18% | 35.74% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | 16.42% | 16.47% | 17.23% | 17.64% | 15.92% | 14.24% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | 2.43% | 7.78% | 11.51% | 25.13% | 25.44% | 26.91% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | 3.46% | 4.22% | 2.96% | 1.77% | -7.73% | -8.15% | -4.38% | -1.58% | 6.88% | 13.80% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2022 Calculation
Net profit margin = 100
× (Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021
+ Net income (loss)Q3 2021)
÷ (RevenueQ2 2022
+ RevenueQ1 2022
+ RevenueQ4 2021
+ RevenueQ3 2021)
= 100 × (-270,007 + 513,286 + 181,694 + -536,757)
÷ (1,176,660 + 1,200,984 + 1,567,220 + 1,283,817)
= -2.14%
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue shows an overall increasing trend from March 31, 2018, to December 31, 2021, with values rising from approximately 665 million USD to over 1.56 billion USD. There are some fluctuations, such as a dip in mid-2020 to around 683 million USD followed by a recovery and growth through 2021. In the first half of 2022, revenue appears to decline slightly compared to the previous quarters but remains above one billion USD.
- Net Income (Loss) Trends
- Net income exhibits significant volatility over the observed periods. Initial periods see positive net income with notable peaks, such as over one billion USD in June 2019. However, there are periods of losses, especially starting from early 2020, with a substantial loss recorded in June 2020. Post-2020, net income continues to alternate between positive and negative figures, reflecting inconsistency in profitability. The first half of 2022 shows a large positive net income followed by a negative figure again.
- Net Profit Margin Analysis
- Net profit margin shows substantial fluctuation consistent with the net income patterns, reaching very high positive margins in mid-2018 and 2019, even exceeding 70% in one quarter. However, from early 2020, margins become negative and generally stay in negative territory except for brief periods of slight positive margins in 2021 and early 2022. This suggests that despite revenue growth, profitability has been challenged during these periods.
- Overall Insights
- The data indicates a company experiencing strong revenue growth over most of the analyzed timeframe, but this growth has not translated reliably into steady profitability. The high volatility in net income and negative profit margins in recent years could reflect increased costs, investments, or market pressures impacting net results. The intermittent returns to profitability suggest some capacity to generate profits, but these have been unstable and subject to external or operational challenges.
Return on Equity (ROE)
Twitter Inc., ROE calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net income (loss) | (270,007) | 513,286) | 181,694) | (536,757) | 65,649) | 68,005) | 222,116) | 28,659) | (1,378,005) | (8,396) | 118,773) | 36,522) | 1,119,560) | 190,804) | 255,303) | 789,179) | 100,117) | 60,997) | ||||||
| Stockholders’ equity | 5,932,481) | 5,904,916) | 7,307,199) | 7,172,631) | 7,716,128) | 7,736,650) | 7,970,082) | 7,812,088) | 7,658,055) | 8,795,627) | 8,704,386) | 8,415,642) | 8,344,814) | 7,088,819) | 6,805,594) | 6,452,572) | 5,570,904) | 5,210,436) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | -1.88% | 3.79% | -3.03% | -2.52% | 4.98% | -13.69% | -14.25% | -15.86% | -16.08% | 14.40% | 16.84% | 19.04% | 28.22% | 18.84% | 17.71% | 16.14% | 4.15% | 0.28% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 28.20% | 29.35% | 30.22% | 28.87% | 26.49% | 22.33% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | 15.35% | 15.18% | 14.73% | 15.12% | 13.13% | 12.66% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 26.74% | 30.30% | 31.53% | 30.22% | 28.18% | 25.24% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | 26.71% | 28.54% | 32.28% | 32.98% | 31.68% | 29.18% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | 1.90% | 6.10% | 9.02% | 21.62% | 21.91% | 22.22% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | 2.92% | 3.43% | 2.25% | 1.30% | -5.28% | -5.89% | -3.43% | -1.28% | 5.95% | 11.56% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2022 Calculation
ROE = 100
× (Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021
+ Net income (loss)Q3 2021)
÷ Stockholders’ equity
= 100 × (-270,007 + 513,286 + 181,694 + -536,757)
÷ 5,932,481 = -1.88%
2 Click competitor name to see calculations.
The analysis of the financial data reveals notable fluctuations in net income, stockholders' equity, and return on equity (ROE) over the observed periods. These variations highlight dynamic changes in profitability and financial position.
- Net Income (Loss)
- Net income demonstrated considerable volatility across the quarters. From moderate positive values in early 2018, it surged significantly during the middle of 2019, reaching a peak of over one million US dollars in June 2019. However, this was followed by a steep decline resulting in a net loss by March 2020. The losses deepened markedly in June 2020 but began to recover later in the year, showing positive net income towards the end of 2020 and early 2021. Subsequently, after periods of moderate earnings, the company again experienced substantial net losses in late 2021 and mid-2022. This pattern indicates alternating phases of profitability and financial challenges within relatively short intervals.
- Stockholders’ Equity
- Stockholders' equity exhibited a steadily increasing trend from early 2018 through to the end of 2019, growing from approximately 5.21 billion to 8.70 billion US dollars. This upward trajectory suggests capital appreciation and potential reinvestment of earnings during this period. Beginning in 2020, equity values declined noticeably, dipping to around 7.65 billion by mid-2020. Although minor recoveries occurred towards the end of 2021, the overall trend throughout 2020 to mid-2022 was downward, with equity decreasing to approximately 5.93 billion. This decline may reflect accumulated losses, stock repurchases, or other factors reducing the equity base.
- Return on Equity (ROE)
- ROE mirrored the fluctuations seen in net income, with positive values throughout 2018 and early 2019, peaking at 28.22% in June 2019. Subsequent quarters featured a gradual decline, remaining positive but reducing to levels around 14-17%. From early 2020, ROE turned negative, reaching lows near -16% between March and June 2020, which corresponds to the periods of significant net losses. Although some recovery occurred by mid-2021, with ROE briefly returning to positive territory, this was short-lived as it again slipped below zero by mid-2022. The oscillations in ROE depict volatility in the company's profitability relative to shareholder investment.
In summary, the financial data portrays a company experiencing significant earnings volatility, with notable profit peaks followed by substantial losses. Stockholders' equity growth through 2019 was undermined by declines in the subsequent years, coinciding with deteriorations in profitability as reflected in the negative ROE values. These trends underscore challenges in sustaining consistent financial performance during the analyzed timeframe.
Return on Assets (ROA)
Twitter Inc., ROA calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net income (loss) | (270,007) | 513,286) | 181,694) | (536,757) | 65,649) | 68,005) | 222,116) | 28,659) | (1,378,005) | (8,396) | 118,773) | 36,522) | 1,119,560) | 190,804) | 255,303) | 789,179) | 100,117) | 60,997) | ||||||
| Total assets | 13,579,287) | 13,550,957) | 14,059,516) | 14,589,345) | 15,323,225) | 14,984,075) | 13,379,090) | 13,088,792) | 12,547,587) | 13,540,725) | 12,703,389) | 11,600,925) | 12,521,607) | 11,145,231) | 10,162,572) | 9,746,192) | 8,861,230) | 7,539,441) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | -0.82% | 1.65% | -1.57% | -1.24% | 2.51% | -7.07% | -8.49% | -9.47% | -9.81% | 9.35% | 11.54% | 13.81% | 18.81% | 11.98% | 11.86% | 10.68% | 2.61% | 0.19% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 20.28% | 20.87% | 21.16% | 20.33% | 18.76% | 15.70% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Comcast Corp. | 5.26% | 5.25% | 5.13% | 5.23% | 4.50% | 4.21% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Meta Platforms Inc. | 19.81% | 22.74% | 23.72% | 23.77% | 22.83% | 20.63% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Netflix Inc. | 10.99% | 11.05% | 11.48% | 11.82% | 10.72% | 9.37% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Trade Desk Inc. | 0.92% | 2.93% | 3.85% | 9.42% | 9.43% | 9.26% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Walt Disney Co. | 1.31% | 1.52% | 0.98% | 0.56% | -2.25% | -2.45% | -1.42% | -0.53% | 2.61% | 5.16% | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2022 Calculation
ROA = 100
× (Net income (loss)Q2 2022
+ Net income (loss)Q1 2022
+ Net income (loss)Q4 2021
+ Net income (loss)Q3 2021)
÷ Total assets
= 100 × (-270,007 + 513,286 + 181,694 + -536,757)
÷ 13,579,287 = -0.82%
2 Click competitor name to see calculations.
The financial data indicates noteworthy fluctuations in net income (loss), total assets, and return on assets (ROA) over the presented periods. Several trends and observations can be drawn from this data.
- Net Income (Loss)
- The net income figures exhibit significant volatility, with periods of substantial profits followed by sharp losses. Initially, there is a marked increase, reaching a peak in the third quarter of 2018. Following this, net income declines sharply and fluctuates, with considerable losses notably occurring in mid-2020 and late 2021. Despite occasional positive results, the overall trend suggests inconsistency in profitability, with several quarters reflecting negative income, particularly from 2020 onwards.
- Total Assets
- Total assets show a general upward trend across the time frame, growing from approximately 7.5 billion to about 13.6 billion. Although there are some slight declines in certain quarters within 2021 and 2022, the asset base remains relatively stable and demonstrates growth over the longer term. This growth in assets may reflect ongoing investments or acquisitions contributing to the expansion of the company's asset portfolio.
- Return on Assets (ROA)
- ROA follows a trajectory similar to net income but with high variability. Early periods display increasing ROA, peaking around late 2018 and mid-2019, indicating efficient asset utilization to generate profits. However, from early 2020 onwards, ROA turns negative for multiple quarters, paralleling the net income losses. There is a mild recovery in some quarters of 2021 and 2022, yet the values suggest challenges in maintaining consistent asset profitability in recent periods.
In summary, while the asset base has generally expanded, profitability as measured by net income and ROA has been unstable, with significant negative results disrupting earlier positive trends. This volatility in earnings and efficiency metrics points to operational or market pressures impacting financial performance.