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Snap (SNAP) Profitability Rank : 3 (As of Dec. 2023)


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What is Snap Profitability Rank?

Snap has the Profitability Rank of 3. It has had trouble to make a profit.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Snap's Operating Margin % for the quarter that ended in Dec. 2023 was -18.27%. As of today, Snap's Piotroski F-Score is 4.


Competitive Comparison of Snap's Profitability Rank

For the Internet Content & Information subindustry, Snap's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Snap's Profitability Rank Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Snap's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Snap's Profitability Rank falls into.



Snap Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Snap has the Profitability Rank of 3. It has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Snap's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=-248.713 / 1361.287
=-18.27 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Snap has an F-score of 4 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Snap Inc operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Snap Profitability Rank Related Terms

Thank you for viewing the detailed overview of Snap's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Snap (SNAP) Business Description

Address
3000 31st Street, Santa Monica, CA, USA, 90405
Snap, which refers to itself as a camera company, has one of the most popular social networking apps, Snapchat, in developed regions such as North America and Europe. Snap generates nearly all its revenue from advertising with 70% coming from North America. The firm is headquartered in Venice, California.
Executives
Rebecca Morrow officer: CAO and Controller C/O SNAP INC., 3000 31ST STREET, SANTA MONICA CA 90405
Derek Andersen officer: Chief Financial Officer C/O SNAP INC., 3000 31ST STREET, SANTA MONICA CA 90405
Michael J. O'sullivan officer: General Counsel C/O SNAP INC., 3000 31ST STREET, SANTA MONICA CA 90405
Eric Young officer: SVP of Engineering 3000 31ST STREET, SANTA MONICA CA 90405
Robert C. Murphy director, officer: Chief Technology Officer C/O SNAP INC., 3000 31ST STREET, SANTA MONICA CA 90405
Evan Spiegel director, officer: Chief Executive Officer C/O SNAP INC., 3000 31ST STREET, SANTA MONICA CA 90405
Jerry James Hunter officer: Senior VP, Engineering 3000 31ST STREET, SANTA MONICA CA 90405
Patrick Spence director C/O SONOS, INC., 614 CHAPALA STREET, SANTA BARBARA CA 93101
Poppy Thorpe director C/O SNAP INC., 3000 31ST STREET, SANTA MONICA CA 90405
Jeremi Gorman officer: Chief Business Officer C/O SNAP INC., 3000 31ST STREET, SANTA MONICA CA 90405
Joanna Coles director C/O SNAP INC., 3000 31ST STREET, SANTA MONICA CA 90405
Fidel Vargas director 3000 31ST STREET, C/O SNAP INC, SANTA MONICA CA 90405
Jared Grusd officer: Chief Strategy Officer C/O SNAP INC., 2772 DONALD DOUGLAS LOOP NORTH, SANTA MONICA CA 90405
Elizabeth Jenkins director C/O SNAP INC., 3000 31ST STREET, SANTA MONICA CA 90405
Michael Lynton director 2000 AVENUE OF THE STARS 12TH FL, LOS ANGELES CA 90067