Yahoo! Inc. (NASDAQ:YHOO)

The financial performance exhibits notable fluctuations over the observed periods, with evident shifts in profitability and leverage metrics.

Return on Assets (ROA)

ROA data is absent for the initial quarters but from March 31, 2012, a peak is observed in September 30, 2012 at 25.6%, followed by a sharp decline to 8.66% by December 31, 2012. The metric then stabilizes moderately between 7.45% and 14.32% through December 31, 2014. A significant downturn occurs starting in 2015, turning negative from June 30, 2015 through December 31, 2016, reaching lows of approximately -11.08%. By early 2017, ROA approaches near zero negative values, indicating diminished asset profitability.

Financial Leverage

Financial leverage remains relatively stable throughout the periods, ranging from about 1.17 to 1.56. Initially, it is close to 1.17–1.31 in 2012, increasing gradually to a range of 1.29–1.6 during 2013 to 2015. Post-2015, financial leverage fluctuates narrowly around 1.5 to 1.57, suggesting consistent but slightly elevated use of debt or other liabilities relative to equity over time.

Return on Equity (ROE)

ROE follows a similar trend to ROA with missing data at the start. It peaks at 30.08% (September 30, 2012), then displays a marked decline to 10.33% by the end of 2012. Subsequently, ROE maintains a moderate range between roughly 9.66% and 21.48% until early 2015. Beyond this point, there is a pronounced decline, with ROE turning negative from June 30, 2015 through December 31, 2016, reaching approximately -17.27%. By March 31, 2017, ROE reflects near-zero negative values, indicating weakened returns for shareholders.

Overall, the data demonstrates a period of relatively strong profitability in 2012, followed by a gradual yet steady erosion of returns on both assets and equity beginning in 2013, culminating in substantial negative profitability during 2015-2016. Financial leverage stays fairly constant, suggesting that increased debt levels are not the primary driver of declining profitability. The sharp downturn in both ROA and ROE indicates operational or market challenges adversely affecting the company’s ability to generate returns. Approaching early 2017, there is a slight improvement, but the profitability remains severely impaired compared to earlier years.

Net Profit Margin

The net profit margin shows a significant fluctuation over the periods analyzed. Beginning from March 2013, the margin is notably high, reaching values above 80% mid-year and peaking at 166.35% in December 2014. However, from March 2015 onward, there is a dramatic decline, with margins turning negative in June 2015 and remaining deeply negative through 2016 and early 2017, indicating substantial losses during these later periods.

Asset Turnover

Asset turnover exhibits a modest downward trend overall. The ratio starts around 0.29-0.3 in early 2013, remaining relatively stable through 2014 before dropping sharply to 0.08 in December 2014. Subsequently, it stabilizes at a lower level between 0.09 and 0.12 until 2016, with a slight decline back to about 0.1 in early 2017. This pattern suggests reduced efficiency in generating revenue from assets over time.

Financial Leverage

Financial leverage shows a gradual increase from 1.17 early in 2012 to approximately 1.56 by the end of 2014, indicating a growing use of debt or financial obligations relative to equity. After this period, the ratio remains relatively stable around 1.5 to 1.57 throughout 2015 to early 2017, suggesting the leverage position was maintained at a moderately elevated level during these years.

Return on Equity (ROE)

ROE mirrors the volatility found in net profit margin. From March 2013, ROE starts at around 27%, increasing slightly to over 30% mid-2013. It then sharply decreases to around 10% by the end of 2013, fluctuating between 9.66% and 21.48% through 2014 and early 2015. Beginning in 2015, ROE plunges into negative territory and remains negative throughout 2016 and early 2017, with values dropping as low as -17.27%, reflecting declining profitability and diminished shareholder returns.

Net Profit Margin

The net profit margin exhibits significant volatility throughout the observed periods. Starting from March 2013, the margin is notably high, reaching above 80% in mid-2013 and peaking at over 160% in late 2014. This unusually high profitability declines sharply beginning in early 2015, turning negative by the first quarter of 2016. The negative trend persists through 2017, with margins hovering near zero or slightly negative by the end of the period, indicating challenges in maintaining profitable operations.

Asset Turnover

The asset turnover ratio remains relatively low and stable, fluctuating around 0.3 from early 2013 until approximately late 2014. After this period, there is a marked decrease to values near 0.1, reflecting a substantial reduction in how efficiently assets are utilized to generate revenue. This lower efficiency in asset usage continues throughout 2015 into 2017, showing minimal recovery.

Return on Assets (ROA)

Return on assets closely follows the trend in net profit margin, starting moderately strong at over 23% in early 2013 and declining steadily. The figure dips into negative territory starting around the beginning of 2016, reaching its lowest points around late 2016, indicating substantial inefficiencies and possible losses relative to asset base. By early 2017, ROA approaches zero, signaling a near break-even scenario in terms of asset profitability.