Profitability analysis sectionCase Study:In $2015,$ Spotify stepped into the podcasting business, adding them to its mix of offerings alongside music and video. However, only in $2017$ did Spotify begin to pursue the business seriously by building its podcasting capabilities through the purchase of studios, such as Soundtrap, and established podcast studies like Gimlet Media $(2018$ purchase$).$ Then in$2019$ Spotify began to sign exclusive deals with creators such as JemeleHill, Rob Riggle, and the Obamas $($Steele$,2019).$In the third quarter of $2021$ Anne Steele of the Wall Street Journal reported that,Third$-$quarter advertising revenue increased $75\%$ from a year earlier, and user growth picked up after a lull earlier this year. Spotify is now the top podcast platform in the U$.$S$.$ by listeners, according to Edison Research, passing incumbent Apple Podcasts in the largest market.Average revenue per user for the subscription business in the quarter climbed $4\%$ to $4\mathrm{.}34,$ equivalent to $$5\mathrm{.}03.$ That is a turnaround for the metric, which has been declining for years as the company attracted new subscribers through discounted plans and lower prices in newer markets. Last fall, Spotify began raising the price of its family plan in dozens of markets, including the U$.$S$.$ It said those increases have finally helped lift per$-$user revenue.Spotify swung to a profit of $2$ million from a loss of $101$ million a year earlier. Per share, the company posted a loss of $41$ European cents, compared with a loss of $58$ European cents a year earlier.While the company has periodically reported a quarterly profit, executives have said it will continue to give priority to growth$-$attracting new subscribers and investing in podcasting.

Profitability Analysis questions:

Based on the profitability metrics, has Spotify experienced steady growth in profitability since beginning its podcast investment?

Where can Spotify's profitability be most improved: operating efficiency or capital efficiency?

Which expense ratio can be most improved for Spotify, on average? What would you suggest for improvement?

Which asset ratio can be most improved for Spotify, on average? What would you suggest for improvement?

$\backslash$table$[[$Fiscal year,$2021,2020,2019,2018],[$Year ended,$12/31/2021,12/31/2020,12/31/2019,12/31/2018],[$Income statement items$($millions$,$ except tax rate$)],[$Revenues$,9,668,7,880,6,764,5,259],[$Operating income $($loss$),94,(293),(73),(43)],[$Effective tax rate,$25\mathrm{.}0\%,25\mathrm{.}0\%,25\mathrm{.}0\%,25\mathrm{.}0\%$