Switch Inc Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Switch Inc - Alpha Spread
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Switch Inc
F:821

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Switch Inc
F:821
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Price: 31.61 EUR -1.74% Market Closed
Market Cap: 7.7B EUR
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Switch Inc

Revenue
668.6m USD
Cost of Revenue
-416m USD
Gross Profit
252.7m USD
Operating Expenses
-158.6m USD
Operating Income
94.1m USD
Other Expenses
285.1m USD
Net Income
379.2m USD

Margins Comparison
Switch Inc Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Switch Inc
F:821
7.7B EUR
38%
14%
57%
CA
Shopify Inc
NYSE:SHOP
94.6B USD
51%
11%
16%
US
Snowflake Inc.
NYSE:SNOW
37.7B USD
68%
-39%
-32%
US
Cloudflare Inc
NYSE:NET
27.3B USD
77%
-12%
-7%
US
MongoDB Inc
NASDAQ:MDB
21.4B USD
74%
-16%
-12%
US
GoDaddy Inc
NYSE:GDDY
21.4B USD
63%
18%
41%
US
Verisign Inc
NASDAQ:VRSN
18B USD
87%
68%
55%
US
Akamai Technologies Inc
NASDAQ:AKAM
15.1B USD
60%
19%
16%
US
Okta Inc
NASDAQ:OKTA
12.6B USD
76%
-9%
-6%
US
Twilio Inc
NYSE:TWLO
9.9B USD
51%
-5%
-14%
ID
DCI Indonesia Tbk PT
IDX:DCII
138.5T IDR
58%
52%
41%
Country US
Market Cap 7.7B EUR
Gross Margin
38%
Operating Margin
14%
Net Margin
57%
Country CA
Market Cap 94.6B USD
Gross Margin
51%
Operating Margin
11%
Net Margin
16%
Country US
Market Cap 37.7B USD
Gross Margin
68%
Operating Margin
-39%
Net Margin
-32%
Country US
Market Cap 27.3B USD
Gross Margin
77%
Operating Margin
-12%
Net Margin
-7%
Country US
Market Cap 21.4B USD
Gross Margin
74%
Operating Margin
-16%
Net Margin
-12%
Country US
Market Cap 21.4B USD
Gross Margin
63%
Operating Margin
18%
Net Margin
41%
Country US
Market Cap 18B USD
Gross Margin
87%
Operating Margin
68%
Net Margin
55%
Country US
Market Cap 15.1B USD
Gross Margin
60%
Operating Margin
19%
Net Margin
16%
Country US
Market Cap 12.6B USD
Gross Margin
76%
Operating Margin
-9%
Net Margin
-6%
Country US
Market Cap 9.9B USD
Gross Margin
51%
Operating Margin
-5%
Net Margin
-14%
Country ID
Market Cap 138.5T IDR
Gross Margin
58%
Operating Margin
52%
Net Margin
41%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Switch Inc Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Switch Inc
F:821
7.7B EUR
70%
12%
3%
3%
CA
Shopify Inc
NYSE:SHOP
94.6B USD
15%
12%
9%
15%
US
Snowflake Inc.
NYSE:SNOW
37.7B USD
-22%
-14%
-25%
-35%
US
Cloudflare Inc
NYSE:NET
27.3B USD
-13%
-4%
-8%
-18%
US
MongoDB Inc
NASDAQ:MDB
21.4B USD
-20%
-8%
-12%
-38%
US
GoDaddy Inc
NYSE:GDDY
21.4B USD
-703%
25%
17%
36%
US
Verisign Inc
NASDAQ:VRSN
18B USD
-49%
53%
244%
112%
US
Akamai Technologies Inc
NASDAQ:AKAM
15.1B USD
14%
7%
10%
8%
US
Okta Inc
NASDAQ:OKTA
12.6B USD
-2%
-2%
-3%
-4%
US
Twilio Inc
NYSE:TWLO
9.9B USD
-6%
-5%
-2%
-3%
ID
DCI Indonesia Tbk PT
IDX:DCII
138.5T IDR
27%
16%
23%
20%
Country US
Market Cap 7.7B EUR
ROE
70%
ROA
12%
ROCE
3%
ROIC
3%
Country CA
Market Cap 94.6B USD
ROE
15%
ROA
12%
ROCE
9%
ROIC
15%
Country US
Market Cap 37.7B USD
ROE
-22%
ROA
-14%
ROCE
-25%
ROIC
-35%
Country US
Market Cap 27.3B USD
ROE
-13%
ROA
-4%
ROCE
-8%
ROIC
-18%
Country US
Market Cap 21.4B USD
ROE
-20%
ROA
-8%
ROCE
-12%
ROIC
-38%
Country US
Market Cap 21.4B USD
ROE
-703%
ROA
25%
ROCE
17%
ROIC
36%
Country US
Market Cap 18B USD
ROE
-49%
ROA
53%
ROCE
244%
ROIC
112%
Country US
Market Cap 15.1B USD
ROE
14%
ROA
7%
ROCE
10%
ROIC
8%
Country US
Market Cap 12.6B USD
ROE
-2%
ROA
-2%
ROCE
-3%
ROIC
-4%
Country US
Market Cap 9.9B USD
ROE
-6%
ROA
-5%
ROCE
-2%
ROIC
-3%
Country ID
Market Cap 138.5T IDR
ROE
27%
ROA
16%
ROCE
23%
ROIC
20%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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