Question: From the data provided in the case ( Exhibits 1 , 2 , 6 , and 7 ) , how does Twitter s performance stack
From the data provided in the case Exhibits and how does Twitters performance stack up with Facebook and Snap? Is there a clear winner based on your analysis?
Select yes for those statements below that are accurate and choose no for those that are not.
a Twitter's financial performance is stronger than Snap, Inc. but weaker than Facebook.
Yes
b Facebook's performance was clearly inferior to Twitter, and the present trends indicate that it will remain unchanged for the near term.
No
c Considering the generally positive revenue and income trends for Twitter versus the negative cost and expense trends for Snap, Inc., which far outweigh the increase in net revenue, Twitter currently has superior performance.
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d Despite Twitter's four percent net loss in its losses had been getting progressively smaller since
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e Facebook has a trend of increasing revenues, but it has made poor progress in controlling its costs.
No
f If Twitter's trends continue, the company will produce net profit in whereas Snap, Inc.s trends clearly point to increased losses.
Yes
g Twitter was more liquid than Facebook or Snap, Inc. in past years.
No
h Twitter had less of its assets in cash and cash equivalents percent of total assets in than either Facebook or Snap, Inc.
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i Facebook's total costs and expenses are under control at percent of net revenue in versus Twitter's percent and Snap, Inc. at percent.
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j Twitter had net income of percent in primarily due to tax benefits due to loss carryforward.
No
k Twitter had no problem with excess leverage, showing a debt to equity ratio of in
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l Twitter appears to be on the path to profitability but they are still behind Facebook, with growth rates in revenue and profit that will not challenge Facebook in the near term.
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