A publicly traded company that I chose is twitter below I identified the resourc

Question

A publicly traded company that I chose is twitter below I identified the resources that would be used (besides the financial statements) to analyze the financial position of this corporation.

the company had redefined social media of its particular kind, usurping MySpace's throne as the trendiest platform for full-on networking between friends and family to the point that they've become absolutely bullish in their growths. The end result is a platform, now, with social media where companies have to develop new and inventive ways to work in harmony with Facebook instead of against it, and developing new and entertaining ways to connect the world in the process. The most notable social media company besides Facebook with some historical clout behind them now is Twitter.

Believe it or not, Twitter was founded all the way back in 2006 based on the initial idea of founder Jack Dorsey to create a service for people within another company of his, Odeo, to communicate effectively and efficiently with one another in brief bursts of information. Their evolution has seen them from a place where Dorsey was initially inspired by SMS, pager-style text messages, into his private program for Odeo employees, and now into today where it is one of the world's most lucrative publicly traded social media ventures.

Interestingly, to say the least, about Twitter is that it has its part in developing a totally new realm of existence for financial growth and development. Like many, if not most, businesses, Twitter makes their money from off of general sales. Their knack for web advertisements embedded in featured tweets alone, however, bought for by individuals and companies alike to bolster their status on the social media platform, is completely unique in and of itself and a driving force behind their gross income. Unlike Facebook, however, they have an unusually high operating cost that has actually consistently kept that portion of their income statement in the red, and it only gets higher over time. These costs, primarily associated with employee salary and their collection of actual office spaces for operation, are unsurprising in the overall field of business, but in the new business model of social media, it seems somewhat extravagant compared to the much lower operating expenses found by other companies within their field. However, their end of year reports for 2015 would indicate a $1,488,776 gross profit (a $1,311,611 increase compared to 2012's $188,165), and NASDAQ indicates that they are a company that generally remains in the green.
the company had redefined social media of its particular kind, usurping MySpace's throne as the trendiest platform for full-on networking between friends and family to the point that they've become absolutely bullish in their growths. The end result is a platform, now, with social media where companies have to develop new and inventive ways to work in harmony with Facebook instead of against it, and developing new and entertaining ways to connect the world in the process. The most notable social media company besides Facebook with some historical clout behind them now is Twitter.

references I used;

MacArthur, A. (2016). The Real History of Twitter, in Brief. About.com. Retrieved from

http://twitter.about.com/od/Twitter-Basics/a/The-Real-History-Of-Twitter-In-Brief.htm

NASDAQ. (July 20, 2016). Twitter, Inc. (TWTR): Income Statement. Retrieved from

http://www.nasdaq.com/symbol/twtr/financials?query=income-statement

Twitter. (2016). Financial information. Retrieved from

https://investor.twitterinc.com/financials.cfm

find an additional resource that provides insight into the financial position of that company, and provide your own commentary on it

Explanation / Answer

From the sources you have provided it can be said that the company has good gross profit but coming to its net profit the company has not been able to generate operating income which is very low this may be due to the fact that new research and development expenses is on a rise as industry in which twitter works require changes and modification at an instant and therefore they require changes in them rapidly in order to survive and strategic partnership is also needed to be maintained by them from time to time. Additional income from their core business is also not profitable company should either shut their operations in these business or slight reduction on them can be exercised and concentration on main business can be followed if these businesses are not able to generate your required rate of return. Accordingly you can use ratio analysis but same will not provide meaningful picture as companies are not giving you the positive returns as well.

Period Ending: Trend 12/31/2015 12/31/2014 12/31/2013 12/31/2012 Total Revenue $2,218,032 $1,403,002 $664,890 $316,933 Cost of Revenue $729,256 $446,309 $266,718 $128,768 Gross Profit $1,488,776 $956,693 $398,172 $188,165 Operating Expenses Research and Development $806,648 $691,543 $593,992 $119,004 Sales, General and Admin. $1,132,164 $804,016 $440,011 $146,244 Non-Recurring Items $0 $0 $0 $0 Other Operating Items $0 $0 $0 $0 Operating Income ($450,036) ($538,866) ($635,831) ($77,083) Add'l income/expense items $14,909 ($3,567) ($3,739) $399 Earnings Before Interest and Tax ($435,127) ($542,433) ($639,570) ($79,170) Interest Expense $98,178 $35,918 $7,576 $0 Earnings Before Tax ($533,305) ($578,351) ($647,146) ($79,170) Income Tax Minority Interest Equity Earnings/Loss Unconsolidated Subsidiary $0 $0 $0 $0 Net Income-Cont. Operations ($521,031) ($577,820) ($645,323) ($79,399)

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