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Judging from the vertical and horizontal income statement, what is the main takeaway from this company? Do you believe this company is sustainable? CONSOLIDATED INCOME
Judging from the vertical and horizontal income statement, what is the main takeaway from this company?
Do you believe this company is sustainable?
CONSOLIDATED INCOME STATEMENT (2017-2021) VERITCAL ANALYSIS (In millions, except par value) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline As of: & & 1-Dec- & 2017% & & 30 Nov- & 2018% & & 29 Nov- & \begin{tabular}{|l|l|} 2019% & \\ \end{tabular} & & 27-Nov- & 2020% & & 3-Dec- & 2021% \\ \hline Revenue: & & 7,302.00 & 100% & $ & 9,030.00 & 100.00% & $ & 11,171.00 & 100.00% & $ & 12,868.00 & 1 & $ & 15,785.00 & 1 \\ \hline Subscription & & 6,134.00 & 84.00% & $ & 7,922.00 & 87.73% & $ & 994.00 & 8.90% & $ & 11,626.00 & 0.9034815 & $ & 14,573.00 & 0.92321825 \\ \hline Product & & 707.00 & 9.68% & $ & 622.00 & 6.89% & $ & 648.00 & 5.80% & $ & 507.00 & 0.03940006 & $ & 555.00 & 0.03515996 \\ \hline Services and support & & 461.00 & 6.31% & $ & 486.00 & 5.38% & $ & 529.00 & 4.74% & $ & 735.00 & 0.05711843 & $ & 657.00 & 0.04162179 \\ \hline Total revenue & & 7,392.00 & 101.23% & $ & 9,030.00 & 100.00% & $ & 11,171.00 & 100.00% & $ & 12,868.00 & 1 & $ & 15,785.00 & \\ \hline \multicolumn{16}{|l|}{ Cost of revenue: } \\ \hline Subscription & & 623.00 & 8.53% & $ & 807.00 & 8.94% & $ & 1,223.00 & 10.95% & $ & 1,108.00 & 0.08610507 & $ & 1,374.00 & 0.08704466 \\ \hline Product & & 57.00 & 0.78% & $ & 46.00 & 0.51% & $ & 40.00 & 0.36% & $ & 36.00 & 0.00279764 & $ & 41.00 & 0.0025974 \\ \hline Services and support & & 330.00 & 4.52% & $ & 342.00 & 3.79% & $ & 411.00 & 3.68% & $ & 578.00 & 0.04491763 & $ & 450.00 & 0.02850808 \\ \hline Total cost of revenue & & 1,010.00 & 13.83\% & $ & 1,195.00 & 13.23% & $ & 1,673.00 & 14.98% & $ & 1,722.00 & 0.13382033 & $ & 1,865.00 & 0.11815014 \\ \hline Gross profit & & 6,291.00 & 86.15% & $ & 7,835.00 & 86.77% & $ & 9,499.00 & 85.03% & $ & 11,146.00 & 0.86617967 & $ & 13,920.00 & 0.88184986 \\ \hline Operating expenses: & & & & & & & & & & & & 0 & & & \\ \hline Research and development & & 1,224.00 & 16.76% & $ & 1,538.00 & 17.03% & $ & 1,930.00 & 17.28% & $ & 2,188.00 & 0.17003419 & $ & 2,540.00 & 0.16091226 \\ \hline Sales and marketing & & 2,198.00 & 30.10% & $ & 2,621.00 & 29.03% & $ & 3,244.00 & 29.04% & $ & 3,591.00 & 0.27906435 & $ & 4,321.00 & 0.27374089 \\ \hline General and administrative & & 625.00 & 8.56% & $ & 745.00 & 8.25% & $ & 881.00 & 7.89% & $ & 968.00 & 0.07522537 & $ & 1,085.00 & 0.06873614 \\ \hline Amortization of intangibles & & 77.00 & 1.05% & $ & 91.00 & 1.01% & $ & 175.00 & 1.57% & $ & 162.00 & 0.01258937 & $ & 172.00 & 0.01089642 \\ \hline Total operating expenses & & 4,123.00 & 56.46% & $ & 4,995.00 & 55.32% & $ & 6,230.00 & 55.77% & $ & 6,909.00 & 0.53691327 & $ & 8,118.00 & 0.51428571 \\ \hline Operating income & & 2,168.00 & 29.69% & $ & 2,840.00 & 31.45% & $ & 3,268.00 & 29.25% & $ & 4,237.00 & 0.3292664 & $ & 5,802.00 & 0.36756414 \\ \hline Non-operating income (Expense): & & & & & & & & & 0.00% & & & & & & \\ \hline Interest and other income (expense), net & & 36.00 & 0.49% & $ & 40.00 & 0.44% & $ & 42.00 & 0.38% & $ & (116.00) & -0.0090146 & $ & (113.00) & -0.0071587 \\ \hline Interest expense & & (74.00) & 1.01% & $ & (89.00) & 0.99% & $ & (157.00) & 1.41% & $ & 13.00 & 0.00101026 & $ & 16.00 & 0.00101362 \\ \hline Investment gains (losses), net & & 7.00 & 0.10% & $ & 3.00 & 0.03% & $ & 52.00 & 0.47% & $ & 42.00 & 0.00326391 & & & \\ \hline Total onon-operating income (expense), net & & (30.00) & 0.41% & $ & (46.00) & 0.51% & $ & (63.00) & 0.56% & $ & (61.00) & -0.0047404 & $ & (97.00) & -0.0061451 \\ \hline Income before income taxes & & 2,138.00 & 29.28% & $ & 2,794.00 & 30.94% & $ & 3,205.00 & 28.69% & $ & 4,176.00 & 0.32 & $ & 5,705.00 & 0.36141907 \\ \hline Provision for incomes taxes & & 444.00 & 6.08% & $ & 203.00 & 2.25% & $ & 253.00 & 2.26% & $ & (1,084.00) & -0.08424 & $ & 883.00 & 0.05593918 \\ \hline Net income & & 1,693.00 & 23.19% & $ & 2,591.00 & 28.69% & $ & 2,951.00 & 26.42% & $ & 5,260.00 & 0.40876593 & $ & 4,822.00 & 0.30547989 \\ \hline Basic net income per share & & 3.43 & 0.05% & $ & 5.28 & 0.06% & $ & 6.07 & 0.05% & $ & 10.94 & 0.00085017 & s & 10.10 & 0.00063985 \\ \hline Shares used to compute basic net income per share & & 494.00 & 6.77% & $ & 491.00 & 5.44% & $ & 486.00 & 4.35% & $ & 481.00 & 0.03737955 & & 477.00 & 0.03021856 \\ \hline Diluted net income per share & & 3.38 & 0.05% & $ & 5.20 & 0.06% & $ & 6.00 & 0.05% & $ & 10.83 & 0.00084162 & s & 10.02 & 0.00063478 \\ \hline Shares used to compute diluted net income per share & & 501.00 & 6.86% & $ & 498.00 & 5.51% & $ & 492.00 & 4.40% & $ & 485.00 & 0.03769039 & $ & 481.00 & 0.03047197 \\ \hline \end{tabular} CONSOLIDATED INCOME STATEMENT (2017-2021) HORIZONTAL ANALYSIS (in millions, except par value)Step by Step Solution
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