Analysis and Interpretation of Profitability for Facebook a. Compute return on equity (ROE). b. Apply the DuPont
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Analysis and Interpretation of Profitability for Facebook
a. Compute return on equity (ROE).
b. Apply the DuPont disaggregation into return on assets it's (ROA) and financial leverage.
c. Calculate the profitability and productivity components of ROA.
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At December 31, $ millions Current assets Cash and cash equivalents. Marketable securities.. Accounts receivable, net. Prepaid expenses and other current assets. FACEBOOK INC. Consolidated Balance Sheet Total current assets Property and equipment, net Intangible assets, net Goodwill Other assets. Total assets Current liabilities Accounts payable. Partners payable.. Accrued expenses and other current liabilities. Deferred revenue and deposits. Total current liabilities.. Other liabilities.. Total liabilities. Stockholders' equity Common stock and additional paid-in capital. Accumulated other comprehensive loss.. Retained earnings Total stockholders' equity... Total liabilities and stockholders' equity FACEBOOK INC. Consolidated Statement of Income For Year Ended December 31, $ millions Revenue.. Costs and expenses Cost of revenue Research and development. Marketing and sales.. General and administrative.. Total costs and expenses.. Encome from operations. Interest and other income (expense), net. Income before provision for income taxes Provision for income taxes. Net income.. 2018 $10,019 31,095 7,587 1,779 50,480 24,683 1,294 18,301 2,576 $97,334 $ 820 541 5,509 147 7,017 6,190 13,207 42,906 (760) 41,981 84,127 $97,334 2017 $ 8,079 33,632 5,832 1,020 48,563 13,721 1,884 18,221 2,135 $84,524 $ 380 390 2,892 98 3,760 6,417 10,177 40,584 (227) 33,990 74,347 $84,524 2018 $55,838 9,355 10,273 7,846 3,451 30,925 24,913 448 25,361 3,249 $22,112 At December 31, $ millions Current assets Cash and cash equivalents. Marketable securities.. Accounts receivable, net. Prepaid expenses and other current assets. FACEBOOK INC. Consolidated Balance Sheet Total current assets Property and equipment, net Intangible assets, net Goodwill Other assets. Total assets Current liabilities Accounts payable. Partners payable.. Accrued expenses and other current liabilities. Deferred revenue and deposits. Total current liabilities.. Other liabilities.. Total liabilities. Stockholders' equity Common stock and additional paid-in capital. Accumulated other comprehensive loss.. Retained earnings Total stockholders' equity... Total liabilities and stockholders' equity FACEBOOK INC. Consolidated Statement of Income For Year Ended December 31, $ millions Revenue.. Costs and expenses Cost of revenue Research and development. Marketing and sales.. General and administrative.. Total costs and expenses.. Encome from operations. Interest and other income (expense), net. Income before provision for income taxes Provision for income taxes. Net income.. 2018 $10,019 31,095 7,587 1,779 50,480 24,683 1,294 18,301 2,576 $97,334 $ 820 541 5,509 147 7,017 6,190 13,207 42,906 (760) 41,981 84,127 $97,334 2017 $ 8,079 33,632 5,832 1,020 48,563 13,721 1,884 18,221 2,135 $84,524 $ 380 390 2,892 98 3,760 6,417 10,177 40,584 (227) 33,990 74,347 $84,524 2018 $55,838 9,355 10,273 7,846 3,451 30,925 24,913 448 25,361 3,249 $22,112
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Related Book For
College Mathematics For Business Economics, Life Sciences, And Social Sciences
ISBN: 978-0134674148
14th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
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