Yahoo! Inc. (NASDAQ:YHOO)

Debt to equity ratio

The debt to equity ratio was consistently zero from March 2012 through September 2013, indicating no reliance on debt financing during this period. Starting in December 2013, a small amount of debt was introduced, reflected by a ratio of 0.09. This level slightly decreased in late 2014 to 0.03 and then gradually increased to a peak of 0.05 in mid-2016, before settling back to 0.04 by the first quarter of 2017. Overall, the ratio remained relatively low, suggesting conservative use of debt relative to shareholders' equity after its initial introduction.

Debt to capital ratio

The debt to capital ratio followed a similar pattern to the debt to equity ratio. It was zero up to September 2013, then rose to 0.08 in December 2013 and remained steady at this level for the following two quarters. A reduction occurred in late 2014 to about 0.03, slowly increasing thereafter and stabilizing around 0.04 from 2015 through early 2017. This indicates a modest and stable proportion of debt in the overall capital structure over the latter part of the analyzed period.

Debt to assets ratio

Debt to assets mirrored the trends of the other debt ratios. Beginning with no recorded debt until September 2013, the ratio increased to 0.07 by December 2013. Subsequently, it dropped to approximately 0.02 in late 2014, and showed slight fluctuations around this level through early 2017. The data suggests a low level of debt relative to total assets, with minimal variation after the initial increase.

Financial leverage ratio

The financial leverage ratio exhibited more variation over time. From March 2012 to September 2012, there was a slight increase from 1.17 to 1.31, followed by a decrease back to about 1.17 in early 2013. A rising trend began in late 2013, reaching a notable peak of 1.60 in the fourth quarter of 2014, indicating a higher degree of leverage during this time frame. Thereafter, the ratio fluctuated moderately between 1.46 and 1.57 through the end of 2016 and the first quarter of 2017. This ratio indicates a consistent but moderate use of financial leverage, with periods of increased leverage particularly in late 2014.

The financial data reveals several key trends concerning the company's debt, equity, and leverage ratios over the observed periods.

Total Debt

Total debt remained relatively stable and low from March 2012 through June 2013, fluctuating between approximately $36 million and $49 million. However, a significant increase occurred starting in December 2013, with debt surging dramatically to over $1.15 billion and continuing to rise slightly thereafter, reaching approximately $1.33 billion by March 2017.

Total Stockholders’ Equity

Stockholders’ equity showed notable volatility over the period. Initially, it decreased from roughly $12.8 billion in March 2012 to approximately $12.5 billion by June 2013, with a peak at $15.6 billion in September 2012. Starting in September 2014, equity figures soared sharply, reaching a peak of about $38.7 billion by December 2014. Subsequently, equity declined gradually with fluctuations, falling to around $28.3 billion by June 2016, and then rising again to approximately $35.4 billion in March 2017.

Debt to Equity Ratio

From March 2012 through September 2013, the debt to equity ratio was effectively zero, reflecting minimal debt relative to equity. A small increase emerged starting in December 2013 with the ratio around 0.09, followed by a decline to approximately 0.03 by December 2014. From 2015 onward, the ratio stabilized in the range of 0.04 to 0.05, indicating a relatively low but consistent level of leverage despite the dramatic increase in total debt observed during the same period.

Overall, the data illustrates a transformation in the capital structure beginning late 2013, characterized by a sharp increase in debt levels and substantial fluctuations in equity. Throughout these changes, leverage remained relatively low, suggesting that the increase in debt was accompanied or offset by equity changes, maintaining a conservative debt-to-equity stance.

The analysis of the quarterly financial data reveals several notable trends in the debt and capital structure over the observed periods. Total debt initially shows a generally stable pattern from March 2012 through June 2013, fluctuating slightly between 36,000 and 49,000 thousand US dollars. However, a significant increase occurs starting from December 2013, where total debt sharply rises beyond one million US dollars, and continues on an upward trajectory through to March 2017, reaching over 1.33 million thousand US dollars by the end of the period.

In contrast, total capital values exhibit more variability and some large fluctuations. From March 2012 to June 2014, total capital remains within the range of approximately 12.5 million to 15.6 million thousand US dollars, exhibiting some volatility but no major upward or downward trend. Starting in September 2014, a dramatic spike occurs, with total capital reaching as high as nearly 40 million thousand US dollars by December 2014. However, after this peak, total capital declines quite substantially and experiences fluctuations, oscillating between approximately 29.5 million and 36 million thousand US dollars from 2015 through early 2017.

The debt to capital ratio remains at zero or negligible levels through most of 2012 and part of 2013, suggesting minimal leverage or reporting of debt relative to capital during this period. Beginning in December 2013, this ratio jumps to approximately 0.08 and then stabilizes around 0.03 to 0.04 from late 2014 onward. This implies a modest but consistent leverage position relative to the company’s capital base during the latter years, with no significant increase or decrease in leverage observed once the ratio stabilizes.

Overall, the data indicate a dramatic increase in total debt starting late 2013, coinciding with large fluctuations and significant peaks in total capital around late 2014. Subsequently, while total capital sees some decline and volatility, the company maintains a relatively stable and moderate debt-to-capital ratio in the range of 3% to 4%. The pronounced changes occurring around 2013–2014 suggest possible strategic shifts, capital restructuring, or significant transactions influencing both debt and capital simultaneously. The stable leverage ratio in more recent periods suggests a controlled approach to balancing debt with capital resources.

Total debt

Relatively stable and low through mid-2013, followed by a sharp increase exceeding one million thousand US dollars from late 2013 onward, with a consistent upward trend to early 2017.

Total capital

Generally steady around 12.5 to 15.6 million thousand US dollars prior to mid-2014, then a dramatic spike to nearly 40 million thousand US dollars by end 2014, followed by a decline and oscillation predominantly between 29.5 million and 36 million thousand US dollars thereafter.

Debt to capital ratio

Close to zero or negligible through most of 2012 and early 2013; rising sharply in late 2013 to approximately 0.08; stabilizing from late 2014 around 0.03-0.04, indicating a modest and maintained leverage level.

The financial data reveals several notable trends in the company's quarterly performance over the observed periods.

Total Debt

Total debt was relatively stable at approximately US$38,000 to US$49,000 thousand from the first quarter of 2012 through the second quarter of 2013, indicating a controlled level of liabilities during this time. However, a marked increase occurred starting in the third quarter of 2013, with total debt escalating sharply to over US$1,154,585 thousand by the fourth quarter of 2013. This elevated debt level continued to rise gradually, reaching about US$1,334,112 thousand by the first quarter of 2017. This significant rise suggests a period of substantial borrowing or financial restructuring.

Total Assets

Total assets showed considerable fluctuation across the periods. Initially, assets ranged from approximately US$14.7 billion to US$20.4 billion between early 2012 and early 2013. A notable spike occurred in the third and fourth quarters of 2014, where assets surged dramatically to approximately US$57.3 billion and US$61.96 billion respectively, followed by a decline to US$41.1 billion to US$45.2 billion in 2015. Subsequently, the asset base fluctuated again, with values around US$44 billion to US$54.7 billion from 2016 through early 2017. These variations suggest significant asset acquisitions or disposals, revaluations, or possible accounting adjustments during the mid-2014 period.

Debt to Assets Ratio

The debt to assets ratio remained near zero during the initial quarters up to the second quarter of 2013, reflecting minimal leverage relative to the asset base. Starting in the third quarter of 2013, the ratio rose to around 0.07, corresponding with the sharp increase in total debt. The ratio then decreased to approximately 0.02 in late 2014 and early 2015, implying an improvement in leverage, possibly due to asset growth or debt reduction. From 2015 to 2017, the ratio stabilized between 0.02 and 0.03, indicating a maintained moderate level of leverage. These ratio changes signal shifts in the company's financial strategy regarding debt management and asset utilization.

In summary, the company underwent a significant increase in total debt starting in late 2013, accompanied by considerable volatility in total assets, particularly around 2014. Despite substantial fluctuations, the debt to assets ratio remained relatively low, suggesting a conservative leverage position relative to the expanded asset base during the later periods.

Total Assets

The total assets exhibited notable fluctuations over the period analyzed. Initially, the figure showed variability, with a peak at the end of the third quarter 2012, reaching over 20.4 billion US dollars. Following this, assets fluctuated around the 16 billion to 17 billion range for several quarters. A substantial increase occurred starting in the third quarter of 2014, where total assets surged dramatically to over 57 billion US dollars, followed by a continued rise to nearly 62 billion US dollars in the subsequent quarter. After this peak, total assets decreased gradually to approximately 41 billion by the third quarter of 2015, then rebounded and again fluctuated around mid-40 to mid-50 billion US dollars through to March 2017. This pattern indicates significant asset acquisitions or revaluations during late 2014, followed by portfolio adjustments.

Total Stockholders’ Equity

Stockholders' equity generally mirrored the trend in total assets but at a lower magnitude. Initial quarters indicated moderate variation, with equity peaking similarly in the third quarter of 2012 at over 15.5 billion US dollars. Equity remained relatively stable near 12 to 14 billion until mid-2014, after which it experienced a sharp increase, peaking at around 38.7 billion in the fourth quarter of 2014. This increase corresponded with the surge in total assets during the same period. Subsequently, equity values exhibited a downward trend toward the end of 2015, reaching approximately 28 billion US dollars, with moderate fluctuations continuing until early 2017 where it increased again to approximately 35.4 billion US dollars. These changes suggest financial restructuring or capital transactions impacting shareholder equity.

Financial Leverage

The financial leverage ratio demonstrated a gradual upward trend overall, indicating an increasing use of debt relative to equity during the period. Starting near 1.17 in early 2012, the ratio remained relatively stable with moderate variation around 1.17 to 1.3 through 2013. Thereafter, a noticeable upward trend took place, with leverage climbing steadily to reach approximately 1.6 by the end of 2014. This elevated leverage level persisted, fluctuating slightly but generally remaining near 1.55 to 1.57 through early 2017. The sustained higher leverage ratios in the later periods reflect a greater reliance on liabilities within the capital structure, possibly to support asset growth or operational financing.