Operating Profit Margin
since 2005
Calculation
Yahoo! Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -12.48% | = | 100 | × | (645,058) | ÷ | 5,169,135) |
| Dec 31, 2015 | -95.58% | = | 100 | × | (4,748,494) | ÷ | 4,968,301) |
| Dec 31, 2014 | 3.10% | = | 100 | × | 142,942) | ÷ | 4,618,133) |
| Dec 31, 2013 | 12.60% | = | 100 | × | 589,926) | ÷ | 4,680,380) |
| Dec 31, 2012 | 11.36% | = | 100 | × | 566,368) | ÷ | 4,986,566) |
| Dec 31, 2011 | 16.06% | = | 100 | × | 800,341) | ÷ | 4,984,199) |
| Dec 31, 2010 | 12.21% | = | 100 | × | 772,524) | ÷ | 6,324,651) |
| Dec 31, 2009 | 5.99% | = | 100 | × | 386,692) | ÷ | 6,460,315) |
| Dec 31, 2008 | 0.18% | = | 100 | × | 12,963) | ÷ | 7,208,502) |
| Dec 31, 2007 | 9.98% | = | 100 | × | 695,413) | ÷ | 6,969,274) |
| Dec 31, 2006 | 14.64% | = | 100 | × | 940,966) | ÷ | 6,425,679) |
| Dec 31, 2005 | 21.07% | = | 100 | × | 1,107,725) | ÷ | 5,257,668) |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The operating profit margin exhibited significant volatility between 2005 and 2016, characterized by an initial period of compression, a mid-term recovery, and a severe contraction in the final years of the analyzed period.
- Initial Margin Erosion (2005-2008)
- A sharp downward trend is observed in the operating profit margin, which declined from a peak of 21.07% in 2005 to 0.18% in 2008. This contraction occurred despite a steady increase in total revenue, which rose from US$ 5.26 billion to US$ 7.21 billion over the same four-year span, indicating that operating costs grew at a disproportionately higher rate than revenue.
- Recovery and Stabilization Phase (2009-2013)
- Following the 2008 low, the operating profit margin rebounded, peaking at 16.06% in 2011. This recovery was driven by an increase in income from operations, which reached US$ 800.3 million in 2011. Between 2012 and 2013, the margin remained relatively stable, fluctuating between 11.36% and 12.60%.
- Severe Contraction and Operating Losses (2014-2016)
- A significant decline began in 2014, with the margin dropping to 3.10%. This was followed by a critical collapse in 2015, where the operating profit margin fell to -95.58%, reflecting a substantial operating loss of US$ 4.75 billion. While the margin improved to -12.48% in 2016, the company continued to experience negative operating profitability.
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Comparison to Competitors
Yahoo! Inc., operating profit margin, long-term trends, comparison to competitors
| Yahoo! Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2016 | -12.48% | 13.82% | 25.51% | — | 13.49% | — | 26.46% | 23.65% | 34.02% | — | -13.79% | 1.72% | -30.41% | 13.10% | -22.77% |
| Dec 31, 2015 | -95.58% | 13.48% | 18.83% | — | 16.77% | — | 17.60% | 19.41% | 36.29% | — | -14.39% | -2.71% | -16.55% | 11.88% | -27.38% |
| Dec 31, 2014 | 3.10% | 13.49% | 9.95% | — | 13.07% | — | 29.16% | 31.97% | 38.56% | — | -36.00% | -7.03% | -22.24% | 12.09% | -32.69% |
| Dec 31, 2013 | 12.60% | 14.27% | 10.42% | — | 12.94% | — | 29.56% | 34.38% | 39.49% | — | -4.70% | -3.63% | -15.61% | 12.56% | -43.07% |
| Dec 31, 2012 | 11.36% | 13.00% | 26.80% | — | 15.96% | — | 28.35% | 29.52% | 36.92% | — | 1.53% | -1.55% | -15.42% | 10.82% | — |
| Dec 31, 2011 | 16.06% | 12.69% | 26.07% | — | 10.47% | — | 26.15% | 38.83% | 33.78% | — | — | 5.88% | — | 13.86% | — |
| Dec 31, 2010 | 12.21% | 12.62% | 26.13% | — | -3.09% | — | 24.98% | 38.57% | 33.79% | — | — | 8.83% | — | 13.33% | — |
| Dec 31, 2009 | 5.99% | 11.41% | 23.44% | — | -14.50% | — | 21.43% | 34.85% | 35.79% | — | — | 5.92% | — | 15.31% | — |
| Dec 31, 2008 | 0.18% | 11.90% | 28.72% | — | -151.48% | — | 21.19% | 37.23% | 34.97% | — | — | 2.71% | — | 16.39% | — |
| Dec 31, 2007 | 9.98% | 11.62% | 27.16% | — | 19.68% | — | 23.85% | 36.23% | 33.20% | — | — | -0.72% | — | 9.74% | — |
| Dec 31, 2006 | 14.64% | 10.10% | 21.41% | — | 15.14% | — | 23.89% | 37.20% | 32.93% | — | — | 6.49% | — | 2.69% | — |
| Dec 31, 2005 | 21.07% | 12.35% | 37.05% | — | 8.94% | — | 25.72% | 36.60% | 34.09% | — | — | 3.70% | — | -5.34% | — |
Based on: 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).