Question

(In millions, except per share amounts Year Ended December 31 2017 2016 2015 Revenue 40,653 S 27,638 S 17,928 Costs and expenses: Cost of revenue Research and development Marketing and sales General and administrative 5,454 7,754 4,725 2,517 20,450 20,203 391 20,594 4,660 3,789 5,919 3,772 1,731 15,211 12,427 91 12,518 2,301 2,867 4.816 2,725 1,295 11,703 6,225 (31) 6,194 2,506 3,688 19 3,669 Total costs and expenses Income from operations Interest and other income (expense), net Income before provision for income taxes Provision for income taxes Net income Less: Net income attributable to participating securities Net income attributable to Class A and Class B common stockholders Earnings per share attributable to Class A and Class B common stockholders: 15,934 S 10,217 S 14 15,920 S 10,188 S Basic 5.49 S 3.56 S 1.31 Diluted 5.39 S 3.49 S 1.29 Weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders: 2,901 2,956 2,863 2,803 2,853 Basic Diluted 2,925 Share-based compensation expense included in costs and expenses Cost of revenue Research and developmernt Marketing and sales General and administrative 178 S 113 S 81 2,350 320 218 2,969 2,820 2,494 436 289 368 243 Total share-based compensation expense 3,723 S 3,218 S

With the image above, What kind of financial, stock market measurements, and ratios can be calculated? Give a few examples of some calculations.

also what trends can be generated from the image above?

Answer 1

Please see the table below. Please scroll down to see the financials, stock market measurement and ratios. In the last column i have explained the trend.

Please see the second column for the formula used for calculation of each row.

All financials are in $ mn except EPS which is in $.

Parameter	Linkage	2017	2016	2015	Trend Analysis
Revenue	A	40,653	27,638	17,928
Cost of Revenue	B	5,454	3,789	2,867
R &D Expenses	C	7,754	5,919	4,816
Sales & marketing expenses	D	4,725	3,772	2,725
General & admin expenses	E	2,517	1,731	1,295
Income from operations	F	20,203	12,427	6,225
interest income / (expense)	G	391	91	(31)
Income before taxes	H	20,594	12,518	6,194
Provision for taxes	I	4,660	2,301	2,506
Net income	J	15,934	10,217	3,688
Financials that can be calculated
Gross profit	K = A - B	35,199	23,849	15,061
Stock market measurement		Not calculated, they are already given
EPS Basic		5.49	3.56	1.31
EPS Diluted		5.39	3.49	1.29
Ratios
Gross profit Margin	K /A	86.6%	86.3%	84.0%	Improvement over a period of time; now steady
R&D Expenses as %age of sales	C / A	19.1%	21.4%	26.9%	Has declined significantly over time
Sales & marketing expenses as %age of sales	D / A	11.6%	13.6%	15.2%	Has declined significantly over time
General & admin expenses as %age of sales	E / A	6.2%	6.3%	7.2%	Has declined marginally over time; implies benefit of scale and efficiency
Operating profit margin	F /A	49.7%	45.0%	34.7%	Improvement over a period of time; mainly due to improvement in gross profit margin and reduction in certain fixed costs as %age of sales
Effective tax rate	I / H	22.6%	18.4%	40.5%
Net income margin	J / A	39.2%	37.0%	20.6%	Phenomenal improvement over time