Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Yahoo! Inc., long-term (investment) activity ratios
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows an overall increasing trend from 2.96 in 2012 to 4.27 in 2016. This indicates an improving efficiency in utilizing fixed assets to generate sales over the period. The ratio experienced moderate fluctuations from 2012 to 2015, ranging between 2.96 and 3.21, followed by a significant increase in 2016.
- Total Asset Turnover
- The total asset turnover ratio declined sharply from 0.29 in 2012 to 0.07 in 2014, suggesting a reduction in the efficiency of overall asset usage to generate revenue during this period. From 2014 onwards, the ratio stabilized at 0.11 in both 2015 and 2016, indicating a slight recovery but remaining substantially lower than the initial years.
- Equity Turnover
- Equity turnover followed a pattern similar to total asset turnover, decreasing from 0.34 in 2012 to 0.12 in 2014, which signals a decline in the firm's ability to generate sales from shareholders' equity. Post-2014, there was a modest improvement as the ratio increased to 0.17 in 2015 and remained flat in 2016.
Net Fixed Asset Turnover
Yahoo! Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 5,169,135) | 4,968,301) | 4,618,133) | 4,680,380) | 4,986,566) | |
| Property and equipment, net | 1,209,937) | 1,547,323) | 1,487,684) | 1,488,518) | 1,685,845) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 4.27 | 3.21 | 3.10 | 3.14 | 2.96 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| Fair Isaac Corp. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys Inc. | — | — | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
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).
1 2016 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= 5,169,135 ÷ 1,209,937 = 4.27
2 Click competitor name to see calculations.
The financial data over the five-year period reveals several notable trends in key operational and asset efficiency metrics.
- Revenue Trends
- The revenue figures demonstrate a fluctuating pattern. Starting at approximately US$4.99 billion in 2012, revenue experienced a decline over the subsequent two years, reaching around US$4.62 billion in 2014. This was followed by a gradual recovery in 2015 and 2016, with revenues reaching US$4.97 billion and US$5.17 billion respectively. Overall, the revenue in 2016 slightly exceeded the 2012 level, indicating a moderate upward recovery after the mid-period dip.
- Property and Equipment, Net
- The net value of property and equipment shows a consistent declining trend throughout the period. Beginning at about US$1.69 billion in 2012, the asset base steadily decreased each year, with a sharper reduction noted in 2016 where the figure dropped to approximately US$1.21 billion. This decline suggests possible asset disposals, depreciation outpacing acquisitions, or strategic divestitures reducing the company's fixed asset base.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits a generally positive trend, moving from 2.96 in 2012 up to 4.27 in 2016. The ratio remained relatively stable with minor fluctuations between 2012 and 2015, increasing more substantially in 2016. This upward movement indicates improved efficiency in utilizing fixed assets to generate revenue, despite the reduction in net property and equipment value.
In summary, while revenues experienced a decline followed by recovery, the company reduced its net property and equipment consistently over the period. Meanwhile, the efficiency of using fixed assets to generate sales improved, as evidenced by the rising net fixed asset turnover ratio. This pattern suggests a strategic emphasis on optimizing asset utilization, possibly through asset sales or streamlined capital expenditure, contributing to stable or improved revenue generation capacity relative to the fixed asset base.
Total Asset Turnover
Yahoo! Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 5,169,135) | 4,968,301) | 4,618,133) | 4,680,380) | 4,986,566) | |
| Total assets | 48,083,079) | 45,203,966) | 61,960,344) | 16,804,959) | 17,103,253) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.11 | 0.11 | 0.07 | 0.28 | 0.29 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| Fair Isaac Corp. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys Inc. | — | — | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
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).
1 2016 Calculation
Total asset turnover = Revenue ÷ Total assets
= 5,169,135 ÷ 48,083,079 = 0.11
2 Click competitor name to see calculations.
- Revenue
- Revenue demonstrated a fluctuating pattern over the five-year period, starting at approximately 4.99 billion US dollars in 2012, followed by a decline to around 4.68 billion in 2013 and further slightly decreasing to approximately 4.62 billion in 2014. Subsequently, revenue recovered, rising to nearly 4.97 billion in 2015 and continuing growth to about 5.17 billion in 2016. This indicates a period of contraction followed by a recovery and moderate growth.
- Total Assets
- Total assets displayed significant volatility throughout the period. From 2012 to 2013, total assets decreased marginally from around 17.1 billion to 16.8 billion US dollars. In 2014, there was a sharp and substantial increase to approximately 61.96 billion, which sharply contracted again to 45.2 billion in 2015 before a slight increase to 48.1 billion in 2016. This pattern may reflect major asset acquisitions or disposals, revaluation, or accounting adjustments within the company during these years.
- Total Asset Turnover
- The total asset turnover ratio showed a significant decline over the five years. In 2012 and 2013, the ratio was relatively stable around 0.29 and 0.28, respectively, indicating consistent efficiency in generating revenue from assets. However, in 2014, this ratio dropped drastically to 0.07, reflecting a sharp decrease in asset utilization effectiveness, which slightly improved in 2015 and 2016 to 0.11 but remained significantly below earlier levels. This trend suggests that despite the increase in assets, the company struggled to convert these assets into proportional revenue efficiently during the latter years.
Equity Turnover
Yahoo! Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 5,169,135) | 4,968,301) | 4,618,133) | 4,680,380) | 4,986,566) | |
| Total Yahoo! Inc. stockholders’ equity | 31,049,283) | 29,043,537) | 38,741,837) | 13,074,909) | 14,560,200) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.17 | 0.17 | 0.12 | 0.36 | 0.34 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| Fair Isaac Corp. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palantir Technologies Inc. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys Inc. | — | — | — | — | — | |
| Workday Inc. | — | — | — | — | — | |
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).
1 2016 Calculation
Equity turnover = Revenue ÷ Total Yahoo! Inc. stockholders’ equity
= 5,169,135 ÷ 31,049,283 = 0.17
2 Click competitor name to see calculations.
The financial data over the five-year period displays notable trends in revenue, stockholders' equity, and equity turnover.
- Revenue
- Revenue figures show fluctuations but maintain a generally stable level between approximately 4.6 billion and 5.2 billion US dollars. Starting at about 4.99 billion in 2012, revenue decreases slightly to around 4.68 billion in 2013 and 4.62 billion in 2014, then recovers by increasing to nearly 5 billion in 2015 and reaching the highest value in the period at nearly 5.17 billion in 2016. This pattern suggests a mild dip followed by a recovery and growth trend in the latter years.
- Total Stockholders' Equity
- Stockholders’ equity experienced significant variability. From 14.56 billion in 2012, equity decreased to 13.07 billion in 2013. A dramatic spike occurred in 2014, with equity rising sharply to approximately 38.74 billion. Subsequently, equity declined in 2015 to about 29.04 billion and slightly increased again to 31.05 billion in 2016. The substantial increase in 2014 denotes a major event impacting shareholders' equity, such as capital injections, revaluations, or other comprehensive income elements. The equity levels remain elevated after this spike relative to the initial years.
- Equity Turnover
- Equity turnover ratios indicate the efficiency of the company in using its equity to generate revenue. Initially, the ratio rose modestly from 0.34 in 2012 to 0.36 in 2013, indicating slightly improved utilization. However, a significant decline to 0.12 occurred in 2014, coinciding with the large increase in equity. This decline suggests that while equity expanded substantially, revenue did not increase proportionally, leading to lower turnover. The ratio improves somewhat to 0.17 in 2015 and maintains this level in 2016 but remains below the earlier years’ figures, reflecting a reduced efficiency in equity usage relative to the early period.