Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Yahoo! Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Yahoo! Inc. gross profit margin ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Yahoo! Inc. operating profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Yahoo! Inc. net profit margin ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Yahoo! Inc. ROE deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Yahoo! Inc. ROA deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Gross Profit Margin
Yahoo! Inc., gross profit margin 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) | ||||||
| Gross profit | 2,450,241) | 2,890,553) | 3,319,819) | 3,331,000) | 3,366,000) | |
| Revenue | 5,169,135) | 4,968,301) | 4,618,133) | 4,680,380) | 4,986,566) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 47.40% | 58.18% | 71.89% | 71.17% | 67.50% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Autodesk Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys 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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 2,450,241 ÷ 5,169,135 = 47.40%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Yahoo! Inc. gross profit margin ratio deteriorated from 2014 to 2015 and from 2015 to 2016. |
Operating Profit Margin
Yahoo! Inc., operating profit margin 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) | ||||||
| Income (loss) from operations | (645,058) | (4,748,494) | 142,942) | 589,926) | 566,368) | |
| Revenue | 5,169,135) | 4,968,301) | 4,618,133) | 4,680,380) | 4,986,566) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -12.48% | -95.58% | 3.10% | 12.60% | 11.36% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Autodesk Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys 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
Operating profit margin = 100 × Income (loss) from operations ÷ Revenue
= 100 × -645,058 ÷ 5,169,135 = -12.48%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Yahoo! Inc. operating profit margin ratio deteriorated from 2014 to 2015 but then improved from 2015 to 2016 not reaching 2014 level. |
Net Profit Margin
Yahoo! Inc., net profit margin 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) | ||||||
| Net income (loss) attributable to Yahoo! Inc. | (214,321) | (4,359,082) | 7,521,731) | 1,366,281) | 3,945,479) | |
| Revenue | 5,169,135) | 4,968,301) | 4,618,133) | 4,680,380) | 4,986,566) | |
| Profitability Ratio | ||||||
| Net profit margin1 | -4.15% | -87.74% | 162.87% | 29.19% | 79.12% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Autodesk Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys 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 profit margin = 100 × Net income (loss) attributable to Yahoo! Inc. ÷ Revenue
= 100 × -214,321 ÷ 5,169,135 = -4.15%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Yahoo! Inc. net profit margin ratio deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Return on Equity (ROE)
Yahoo! Inc., ROE 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) | ||||||
| Net income (loss) attributable to Yahoo! Inc. | (214,321) | (4,359,082) | 7,521,731) | 1,366,281) | 3,945,479) | |
| Total Yahoo! Inc. stockholders’ equity | 31,049,283) | 29,043,537) | 38,741,837) | 13,074,909) | 14,560,200) | |
| Profitability Ratio | ||||||
| ROE1 | -0.69% | -15.01% | 19.42% | 10.45% | 27.10% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Autodesk Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys 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
ROE = 100 × Net income (loss) attributable to Yahoo! Inc. ÷ Total Yahoo! Inc. stockholders’ equity
= 100 × -214,321 ÷ 31,049,283 = -0.69%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Yahoo! Inc. ROE deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |
Return on Assets (ROA)
Yahoo! Inc., ROA 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) | ||||||
| Net income (loss) attributable to Yahoo! Inc. | (214,321) | (4,359,082) | 7,521,731) | 1,366,281) | 3,945,479) | |
| Total assets | 48,083,079) | 45,203,966) | 61,960,344) | 16,804,959) | 17,103,253) | |
| Profitability Ratio | ||||||
| ROA1 | -0.45% | -9.64% | 12.14% | 8.13% | 23.07% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Accenture PLC | — | — | — | — | — | |
| Adobe Inc. | — | — | — | — | — | |
| Autodesk Inc. | — | — | — | — | — | |
| Cadence Design Systems Inc. | — | — | — | — | — | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| International Business Machines Corp. | — | — | — | — | — | |
| Intuit Inc. | — | — | — | — | — | |
| Microsoft Corp. | — | — | — | — | — | |
| Oracle Corp. | — | — | — | — | — | |
| Palo Alto Networks Inc. | — | — | — | — | — | |
| Salesforce Inc. | — | — | — | — | — | |
| ServiceNow Inc. | — | — | — | — | — | |
| Synopsys 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
ROA = 100 × Net income (loss) attributable to Yahoo! Inc. ÷ Total assets
= 100 × -214,321 ÷ 48,083,079 = -0.45%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Yahoo! Inc. ROA deteriorated from 2014 to 2015 but then slightly improved from 2015 to 2016. |