Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Twitter Inc., profitability ratios
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Twitter Inc. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Twitter Inc. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Twitter Inc. net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Twitter Inc. ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Twitter Inc. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Gross Profit Margin
Twitter Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | 3,279,972) | 2,349,961) | 2,322,288) | 2,077,362) | 1,582,057) | |
| Revenue | 5,077,482) | 3,716,349) | 3,459,329) | 3,042,359) | 2,443,299) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 64.60% | 63.23% | 67.13% | 68.28% | 64.75% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 56.94% | 53.58% | 55.58% | — | — | |
| Comcast Corp. | 66.96% | 68.02% | 68.39% | — | — | |
| Meta Platforms Inc. | 80.79% | 80.58% | 81.94% | — | — | |
| Netflix Inc. | 41.64% | 38.89% | — | — | — | |
| Walt Disney Co. | 33.06% | 32.89% | 39.60% | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 3,279,972 ÷ 5,077,482 = 64.60%
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. | Twitter Inc. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Operating Profit Margin
Twitter Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Income (loss) from operations | (492,739) | 26,658) | 366,373) | 453,325) | 38,740) | |
| Revenue | 5,077,482) | 3,716,349) | 3,459,329) | 3,042,359) | 2,443,299) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -9.70% | 0.72% | 10.59% | 14.90% | 1.59% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 30.55% | 22.59% | 21.15% | — | — | |
| Comcast Corp. | 17.89% | 16.89% | 19.39% | — | — | |
| Meta Platforms Inc. | 39.65% | 38.01% | 33.93% | — | — | |
| Netflix Inc. | 20.86% | 18.34% | — | — | — | |
| Walt Disney Co. | 4.46% | -2.97% | 15.33% | — | — | |
| Operating Profit Margin, Sector | ||||||
| Media & Entertainment | 26.39% | 20.33% | — | — | — | |
| Operating Profit Margin, Industry | ||||||
| Communication Services | 22.45% | 16.35% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Operating profit margin = 100 × Income (loss) from operations ÷ Revenue
= 100 × -492,739 ÷ 5,077,482 = -9.70%
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. | Twitter Inc. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Net Profit Margin
Twitter Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | (221,409) | (1,135,626) | 1,465,659) | 1,205,596) | (108,063) | |
| Revenue | 5,077,482) | 3,716,349) | 3,459,329) | 3,042,359) | 2,443,299) | |
| Profitability Ratio | ||||||
| Net profit margin1 | -4.36% | -30.56% | 42.37% | 39.63% | -4.42% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Alphabet Inc. | 29.51% | 22.06% | 21.22% | — | — | |
| Comcast Corp. | 12.17% | 10.17% | 11.99% | — | — | |
| Meta Platforms Inc. | 33.38% | 33.90% | 26.15% | — | — | |
| Netflix Inc. | 17.23% | 11.05% | — | — | — | |
| Walt Disney Co. | 2.96% | -4.38% | 15.89% | — | — | |
| Net Profit Margin, Sector | ||||||
| Media & Entertainment | 23.20% | 17.27% | — | — | — | |
| Net Profit Margin, Industry | ||||||
| Communication Services | 18.71% | 11.50% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × -221,409 ÷ 5,077,482 = -4.36%
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. | Twitter Inc. net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Return on Equity (ROE)
Twitter Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | (221,409) | (1,135,626) | 1,465,659) | 1,205,596) | (108,063) | |
| Stockholders’ equity | 7,307,199) | 7,970,082) | 8,704,386) | 6,805,594) | 5,047,218) | |
| Profitability Ratio | ||||||
| ROE1 | -3.03% | -14.25% | 16.84% | 17.71% | -2.14% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Alphabet Inc. | 30.22% | 18.09% | 17.05% | — | — | |
| Comcast Corp. | 14.73% | 11.66% | 15.78% | — | — | |
| Meta Platforms Inc. | 31.53% | 22.72% | 18.29% | — | — | |
| Netflix Inc. | 32.28% | 24.96% | — | — | — | |
| Walt Disney Co. | 2.25% | -3.43% | 12.44% | — | — | |
| ROE, Sector | ||||||
| Media & Entertainment | 23.69% | 14.90% | — | — | — | |
| ROE, Industry | ||||||
| Communication Services | 20.34% | 11.50% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × -221,409 ÷ 7,307,199 = -3.03%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Twitter Inc. ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Return on Assets (ROA)
Twitter Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income (loss) | (221,409) | (1,135,626) | 1,465,659) | 1,205,596) | (108,063) | |
| Total assets | 14,059,516) | 13,379,090) | 12,703,389) | 10,162,572) | 7,412,477) | |
| Profitability Ratio | ||||||
| ROA1 | -1.57% | -8.49% | 11.54% | 11.86% | -1.46% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Alphabet Inc. | 21.16% | 12.60% | 12.45% | — | — | |
| Comcast Corp. | 5.13% | 3.85% | 4.96% | — | — | |
| Meta Platforms Inc. | 23.72% | 18.29% | 13.86% | — | — | |
| Netflix Inc. | 11.48% | 7.03% | — | — | — | |
| Walt Disney Co. | 0.98% | -1.42% | 5.70% | — | — | |
| ROA, Sector | ||||||
| Media & Entertainment | 13.02% | 8.04% | — | — | — | |
| ROA, Industry | ||||||
| Communication Services | 8.36% | 4.69% | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × -221,409 ÷ 14,059,516 = -1.57%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Twitter Inc. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |