Yahoo! Inc. (NASDAQ:YHOO)

The analysis of the data reveals several significant trends in the intangible assets and goodwill over the five-year period ending in 2016.

Customer, affiliate, and advertiser related relationships

This item exhibited a strong growth trend from 2012 to 2014, increasing from approximately $162 million to nearly $370 million. However, it declined in the subsequent years, falling to about $284 million by the end of 2016.

Developed technology and patents

There is a consistent downward trend in the value of developed technology and patents, starting from approximately $270 million in 2012 and decreasing steadily each year to around $129 million in 2016. This decline suggests amortization or impairment outweighing additions or improvements.

Tradenames, trademarks, and domain names

This asset category increased substantially from about $50 million in 2012 to roughly $108 million in 2013 and 2014, before declining sharply to approximately $46 million by 2016. The rise and subsequent decline could reflect acquisitions and disposals or reevaluation of these intangible assets.

Intangible assets, gross carrying amount

The gross carrying amount of intangible assets rose significantly from around $483 million in 2012 to a peak of approximately $684 million in 2014. After this peak, it fell steadily to about $459 million by 2016, indicating net disposals or amortizations exceeding new acquisitions over the latter period.

Accumulated amortization

The accumulated amortization decreased (became less negative) from approximately -$329 million in 2012 to around -$213 million in 2014, but then increased again to almost -$297 million by 2016. This pattern suggests periods of accelerated amortization or adjustments after 2014.

Intangible assets, net

The net value of intangible assets increased markedly from around $154 million in 2012 to nearly $471 million in 2014. However, from 2014 onwards, there was a considerable decline, with net worth dropping to approximately $162 million by 2016, reflecting the effects of amortization and possible impairments.

Goodwill

Goodwill showed a rising trend from approximately $3.8 billion in 2012 to about $5.2 billion in 2014. Nevertheless, a sharp and significant decline is visible in 2015 and 2016, falling drastically to nearly $416 million by 2016. This suggests substantial write-downs or disposals of goodwill during these years.

Intangible assets and goodwill, net

The combined net figure for intangible assets and goodwill increased from roughly $4.0 billion in 2012 to a peak of about $5.6 billion in 2014. Thereafter, a pronounced decline took place, with the combined net amount dropping substantially to approximately $577 million by 2016, mainly driven by the decreases in goodwill and net intangible assets.

Overall, the financial data display a pattern of asset growth up to 2014 followed by significant reductions in intangible assets and goodwill over the next two years. The trends indicate strategic actions such as impairment charges, disposals, or write-downs affecting the valuation of intangible assets and goodwill, particularly after 2014. These changes may have been prompted by evolving business conditions or reassessments of asset values.

Total Assets

The reported total assets show a relatively stable level with minor fluctuations from 2012 through 2013, followed by a substantial surge in 2014, reaching over 61 billion US dollars. After this peak, assets decline sharply in 2015 and partially recover in 2016. The adjusted total assets follow a similar pattern but consistently show lower values than the reported figures, indicating the exclusion of goodwill or similar adjustments which have a significant impact on the asset base, particularly in 2014. Over the examination period, adjusted assets decreased from approximately 13.3 billion in 2012 to about 12.1 billion in 2013, then sharply increased to nearly 56.8 billion in 2014, followed by a drop in 2015 and slight recovery in 2016.

Stockholders' Equity

Reported equity mirrors the asset trend, holding steady around 14.6 billion in 2012 but dropping to roughly 13.1 billion in 2013, then sharply increasing to almost 38.7 billion in 2014. This is followed by a marked decline in 2015 and partial rebound in 2016. Adjusted equity values are consistently lower than reported equity, decreasing from about 10.7 billion in 2012 to 8.4 billion in 2013, then surging to 33.6 billion in 2014, with reductions thereafter similar to the reported figures. The proximity between reported and adjusted equity narrows over time, especially by 2016, indicating that goodwill or intangible asset adjustments have less relative impact on equity in later years though still significant in early years.

Net Income (Loss) Attributable to the Company

Reported net income shows substantial volatility, starting at approximately 3.9 billion in 2012, sharply declining to about 1.4 billion in 2013, rebounding to 7.5 billion in 2014, then turning to significant losses in 2015 and near-breakeven in 2016. Adjusted net income follows a similar pattern but shows less pronounced losses, especially in 2015 and 2016 where net income remains near zero or slightly positive rather than deeply negative. This suggests adjustments for goodwill impairments or other non-operating items significantly impact the reported net income figures in the latter years, moderating the seemingly sharp downturn seen in reported results.

Overall Trends and Insights

The data reveal pronounced volatility in the company’s financial position between 2012 and 2016. A notable event in 2014 drives sharp increases in both assets and equity, likely reflecting a major acquisition or similar change in balance sheet composition, as indicated by the divergence between reported and adjusted data. Subsequent years show a correction or writedown phase, with assets and equity decreasing markedly. The disparity between reported and adjusted net income highlights the significant effect of goodwill and related adjustments on earnings, especially in the years 2015 and 2016 where reported losses are mitigated under adjusted figures. This suggests challenges in realizing value from intangible assets during this period. Overall, the volatility in key financial metrics points to significant underlying structural changes and valuation adjustments affecting the company's financial health.

Net Profit Margin

The reported net profit margin demonstrated significant volatility over the analyzed periods. Initially high at 79.12% in 2012, it declined sharply to 29.19% in 2013, surged to an exceptionally elevated 162.87% in 2014, then swung to negative values of -87.74% in 2015 and -4.15% in 2016. The adjusted net profit margin, which accounts for goodwill, follows a similar trend but exhibits a smaller negative impact in the later years, showing stabilization at modest positive levels of 2.05% in 2015 and 3.49% in 2016.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios remained relatively low throughout the timeline. The reported ratios fluctuated slightly, decreasing from 0.29 in 2012 to 0.07 in 2014 before recovering marginally to 0.11 in 2015 and 2016. Adjusted ratios were consistently higher than reported ones in early years (notably 0.38 and 0.39 in 2012 and 2013), but converged with reported figures from 2014 onwards, reflecting limited improvement in asset efficiency regardless of goodwill adjustments.

Financial Leverage

Financial leverage exhibited a gradual increasing trend across the five years, indicating greater use of debt or obligations to finance assets. The reported financial leverage rose from 1.17 in 2012 to a peak of 1.6 in 2014 before slightly decreasing but remaining near 1.55 in subsequent years. The adjusted financial leverage followed the same pattern but was consistently higher than reported values, suggesting that goodwill adjustments increased the leverage ratio, particularly noticeable in 2013 and 2014.

Return on Equity (ROE)

The reported ROE showed notable instability, starting at a moderately high 27.1% in 2012, declining to a low of 10.45% in 2013, increasing again in 2014 to 19.42%, followed by a steep drop to -15.01% in 2015 and to -0.69% in 2016. Adjusted ROE was higher across all years and less negative in the final two years, indicating that goodwill adjustments have a positive effect on equity returns. Despite fluctuations, adjusted ROE reveals a decline towards near zero by 2016, signaling reduced profitability relative to equity over time.

Return on Assets (ROA)

Reported ROA tracked a declining path from 23.07% in 2012 down to negative territory by 2015 (-9.64%) and marginally below zero (-0.45%) in 2016. Adjusted ROA was consistently higher than reported figures, starting at 29.72% in 2012 and declining to a low but positive 0.38% in 2016. This disparity suggests that the exclusion of goodwill impairment or related adjustments results in better asset profitability. The overall trend reflects weakening asset efficiency and profitability in later years.

The financial data reveals significant fluctuations in both reported and adjusted net income for the periods examined. Initially, the reported net income attributable to the company stood at a high positive value, but it experienced a steep decline by the end of 2013. Subsequently, it showed a substantial increase in 2014, reaching a peak before turning negative in 2015 and remaining negative, albeit to a lesser extent, in 2016.

The adjusted net income follows a somewhat similar trajectory but with notable differences in the later years. After rising through 2014, the adjusted net income sharply decreased in 2015, reaching a marginally positive figure, and modestly improved in 2016. This suggests that adjustments, likely related to goodwill or other non-recurring items, significantly impacted the reported figures, especially during the loss-making periods.

Examining the profitability margins provides further insight into the company's performance. The reported net profit margin initially displayed an exceptionally strong performance, peaking in 2014 at an unusually high level exceeding 160%. However, it collapsed dramatically in 2015 to a substantially negative margin, indicating large reported losses relative to revenue, and remained negative in 2016, though with some improvement.

The adjusted net profit margin demonstrates a more moderated yet still volatile pattern. It follows the trend of the reported margins early on but shows positive margins in the last two years, contrasting with the negative reported margins for those years. This disparity underscores the impact of adjustments in stabilizing the perceived profitability of the company.

Trend Summary:

There is a pronounced volatility in net income, with a peak in 2014 followed by notable losses in 2015 and 2016 on a reported basis.

Adjusted figures indicate profitability was largely maintained or marginally positive in the face of reported losses after 2014.

Reported net profit margins vary widely, reaching improbable highs and severe lows, suggesting significant irregular items influencing earnings.

Adjusted net profit margins provide a smoother outlook, reflecting lower but generally positive profitability from 2015 onward.

The divergence between reported and adjusted results in the later years points to considerable accounting adjustments affecting the company's reported financial position.

The data reveals significant fluctuations in the reported and adjusted total assets over the five-year period. Initially, reported total assets were approximately 17.1 billion US dollars at the end of 2012 and remained relatively stable through 2013. However, a notable increase occurred in 2014, with assets rising sharply to over 61.9 billion US dollars. This increase was followed by a decline in 2015 to around 45.2 billion US dollars, and a slight recovery in 2016 to approximately 48.1 billion US dollars.

Adjusted total assets, which likely exclude goodwill, show a similar trend but with generally lower values. They started at about 13.3 billion US dollars in 2012 and decreased slightly in 2013. Like the reported figures, adjusted assets surged in 2014 to nearly 56.8 billion US dollars, then decreased to about 44.4 billion in 2015, and increased marginally to roughly 47.7 billion in 2016. The gap between reported and adjusted total assets suggests a considerable amount of goodwill on the balance sheet, especially prominent in 2014.

Regarding asset turnover ratios, both reported and adjusted total asset turnover exhibit a downward trend initially, followed by stabilization at lower levels. The reported total asset turnover decreased from 0.29 in 2012 to 0.28 in 2013, then sharply dropped to 0.07 in 2014. It showed a modest rebound to 0.11 in 2015 and maintained this level through 2016. Adjusted total asset turnover follows a similar pattern: starting higher at 0.38 in 2012 and 0.39 in 2013, then plummeting to 0.08 in 2014, before rising to 0.11 in 2015 and stabilizing at this value in 2016.

These trends indicate that asset efficiency, as measured by turnover ratios, was substantially higher before 2014. The marked decrease in 2014 corresponds temporally with the large increase in total assets, implying that the asset base expanded rapidly relative to revenue generation capacity. The subsequent stabilization at lower turnover levels suggests the company adjusted to a larger asset base but did not regain previous efficiency levels in asset utilization during the observed period.

Summary of Asset Trends:

Reported and adjusted total assets showed a large increase in 2014 followed by declines and partial recoveries in subsequent years.

The difference between reported and adjusted figures highlights significant goodwill presence, primarily in 2014.

Summary of Asset Turnover Trends:

Both reported and adjusted asset turnover ratios declined sharply in 2014 and stabilized at lower values in 2015 and 2016.

The decline suggests rapid asset growth outpaced revenue growth, reducing asset efficiency.

Insights:

The data suggests a strategic acquisition or sizable investment in 2014 that increased total assets and goodwill, impacting asset turnover negatively.

Post-2014 turnover stabilization indicates a recalibration of operations but no return to prior asset utilization efficiency.

The financial data reveals several significant trends in the company's reported and goodwill-adjusted figures over the five-year period ending December 31, 2016.

Total Assets

Reported total assets experienced a substantial increase from approximately 17.1 billion US dollars in 2012 to over 61.9 billion US dollars in 2014, before declining to around 45.2 billion in 2015 and slightly increasing again to 48.1 billion in 2016. The adjusted total assets follow a similar pattern but consistently show lower values due to goodwill adjustments. The adjusted figures rose from about 13.3 billion in 2012 to nearly 56.8 billion in 2014, then declined and somewhat stabilized near 44.4 billion in 2015 and 47.7 billion in 2016.

Stockholders’ Equity

Reported total stockholders’ equity also saw a sharp increase reaching a peak of approximately 38.7 billion in 2014, followed by a decline to about 29.0 billion in 2015 and a modest recovery to 31.0 billion in 2016. The adjusted stockholders’ equity, which excludes goodwill, exhibits a notable decrease from 10.7 billion in 2012 to around 8.4 billion in 2013, then a marked surge to 33.6 billion in 2014. Afterward, it slightly decreased to 28.2 billion in 2015 and rose again to 30.6 billion in 2016.

Financial Leverage

The reported financial leverage ratio increased gradually from 1.17 in 2012 to a peak of 1.60 in 2014, indicating a growing proportion of total assets over equity. It then slightly decreased to 1.56 in 2015 and remained relatively stable at 1.55 in 2016. The adjusted financial leverage ratio follows a comparable trend but shows consistently higher leverage due to the lower equity base after goodwill adjustments. It increased from 1.24 in 2012 to 1.69 in 2014, followed by a reduction to 1.57 in 2015 and a slight decline to 1.56 in 2016.

Overall, the data indicates a period of rapid growth and expansion in total assets and equity until 2014, followed by a contraction or revaluation in 2015 with a mild recovery in 2016. Adjustments for goodwill reduce the asset and equity values but reveal consistent leverage trends. The elevated financial leverage in 2014 suggests increased reliance on liabilities relative to equity during the peak expansion phase, which then slightly receded but remained higher than the initial years by 2016.

The financial data reveals significant fluctuations in profitability and equity over the five-year period under review. Both reported and adjusted net income exhibit considerable volatility, with notable peaks and troughs.

Net Income Patterns

Reported net income shows a strong initial performance in 2012 with approximately 3.95 billion USD, followed by a sharp decline in 2013 to around 1.37 billion USD. There is a substantial recovery in 2014, reaching over 7.52 billion USD. However, this is succeeded by negative results in the subsequent years, with reported net losses of roughly 4.36 billion USD in 2015 and 214 million USD in 2016.

Adjusted net income follows a similar trajectory but reflects less pronounced negative outcomes post-2014. After peaking near 7.61 billion USD in 2014, adjusted figures drop significantly in 2015 to approximately 102 million USD and moderately recover to 181 million USD in 2016, remaining positive despite being substantially lower than earlier years.

Total Stockholders' Equity Trends

The reported total stockholders’ equity initially decreases from approximately 14.56 billion USD in 2012 to 13.07 billion USD in 2013. A remarkable surge occurs in 2014, where equity more than doubles to 38.74 billion USD, followed by a decline to 29.04 billion USD in 2015. The equity then shows a slight recovery to over 31.05 billion USD in 2016.

Adjusted total stockholders’ equity demonstrates a similar pattern with a decrease in the early period, an increase to approximately 33.58 billion USD in 2014, and a smaller reduction through 2015, before a slight increase in 2016. However, the adjusted figures remain consistently lower than the reported ones across all years, likely reflecting goodwill adjustments that reduce the equity base.

Return on Equity (ROE)

Reported ROE exhibits a downward trend from a strong 27.1% in 2012 to just over 10.45% in 2013. It recovers somewhat to 19.42% in 2014 before plummeting to negative percentages in the subsequent years (-15.01% in 2015 and -0.69% in 2016), indicating deteriorating profitability relative to equity.

Adjusted ROE is consistently higher than reported ROE in the earlier years, starting at 36.76% in 2012 and declining gradually to 17.03% in 2013 and 22.66% in 2014. After these periods, adjusted ROE approaches neutrality with marginally positive returns of 0.36% in 2015 and 0.59% in 2016, suggesting minimal profitability when excluding goodwill effects.

Overall, the data indicates substantial volatility in financial performance with a notable peak in 2014, followed by significant net losses and reduced profitability in later years. Stockholders' equity experienced a large expansion in 2014, followed by subsequent stabilization at a lower level. The adjusted results, incorporating goodwill adjustments, demonstrate more conservative equity valuation and smoother profitability metrics, emphasizing the impact of non-recurring items or asset revaluations on the reported figures.

The financial data reveals significant fluctuations in performance and asset values over the five-year period ending December 31, 2016. Several key trends are apparent in both the reported and adjusted figures.

Net Income

Reported net income attributable to the company demonstrated notable volatility. Starting at approximately 3.95 billion US dollars in 2012, it declined sharply to 1.37 billion in 2013, then surged to 7.52 billion in 2014. Subsequently, it turned negative, recording losses of about 4.36 billion in 2015 and 0.21 billion in 2016. The adjusted net income shows a somewhat smoother pattern: it starts at the same level as reported in 2012 but does not decline as steeply in 2013, with 1.43 billion, and again peaks in 2014 with about 7.61 billion. However, it remains positive even in 2015 and 2016, though at much lower levels: 102 million and 181 million respectively.

Total Assets

The reported total assets show volatility as well. From about 17.1 billion in 2012, there is a slight decline to 16.8 billion in 2013, followed by a substantial jump to 61.96 billion in 2014. After that, the asset base contracts considerably to 45.2 billion in 2015, with a modest increase to nearly 48.1 billion in 2016. The adjusted total assets trend follows a similar pattern but on a consistently lower base, reflecting the exclusion of goodwill: starting at roughly 13.3 billion in 2012, declining in 2013 and then rising sharply to 56.8 billion in 2014, before decreasing to 44.4 billion in 2015 and slightly increasing to 47.7 billion in 2016.

Return on Assets (ROA)

The reported ROA percentage reveals a strong positive return in 2012 (23.07%), which declines markedly to 8.13% in 2013, recovers partially to 12.14% in 2014, and then turns negative with -9.64% in 2015 and -0.45% in 2016, indicating losses relative to asset base. In contrast, the adjusted ROA, which excludes goodwill, starts even higher at 29.72% in 2012 and declines more gradually, maintaining positive figures throughout all years, ending at 0.38% in 2016. This suggests that asset adjustments provide a more stable and positive perspective on the company's earning efficiency over time.

In summary, the company experienced extreme variability in profitability and asset size during the period, with a peak in 2014 followed by substantial losses in 2015 and 2016. The adjusted figures, particularly for net income and ROA, indicate a less volatile and more consistently positive underlying performance when goodwill is excluded. Asset size similarly peaked in 2014 with a subsequent reduction, consistent with impaired or revalued goodwill impacting the reported totals more significantly than adjusted numbers. These trends suggest that goodwill adjustments materially affect the depiction of financial health and performance, highlighting the importance of analyzing adjusted figures for a clearer understanding of operational results.