Stock Analysis on Net

Time Warner Cable Inc. (NYSE:TWC)

This company has been moved to the archive! The financial data has not been updated since April 28, 2016.

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Time Warner Cable Inc., profitability ratios

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Return on Sales
Gross profit margin 75.46% 76.79% 77.62% 78.01% 53.56%
Operating profit margin 17.89% 20.31% 20.71% 20.78% 20.68%
Net profit margin 7.78% 8.90% 8.83% 10.08% 8.46%
Return on Investment
Return on equity (ROE) 20.50% 25.35% 28.14% 29.61% 22.11%
Return on assets (ROA) 3.74% 4.19% 4.05% 4.33% 3.45%

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Time Warner Cable Inc. gross profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Time Warner Cable Inc. operating profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Time Warner Cable Inc. net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Time Warner Cable Inc. ROE deteriorated from 2013 to 2014 and from 2014 to 2015.
ROA A profitability ratio calculated as net income divided by total assets. Time Warner Cable Inc. ROA improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.

Gross Profit Margin

Time Warner Cable Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Gross profit 17,882 17,518 17,170 16,683 10,537
Revenue 23,697 22,812 22,120 21,386 19,675
Profitability Ratio
Gross profit margin1 75.46% 76.79% 77.62% 78.01% 53.56%
Benchmarks
Gross Profit Margin, Competitors2
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 17,882 ÷ 23,697 = 75.46%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Time Warner Cable Inc. gross profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.

Operating Profit Margin

Time Warner Cable Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Operating income 4,239 4,632 4,580 4,445 4,069
Revenue 23,697 22,812 22,120 21,386 19,675
Profitability Ratio
Operating profit margin1 17.89% 20.31% 20.71% 20.78% 20.68%
Benchmarks
Operating Profit Margin, Competitors2
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 4,239 ÷ 23,697 = 17.89%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Time Warner Cable Inc. operating profit margin ratio deteriorated from 2013 to 2014 and from 2014 to 2015.

Net Profit Margin

Time Warner Cable Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Net income attributable to TWC shareholders 1,844 2,031 1,954 2,155 1,665
Revenue 23,697 22,812 22,120 21,386 19,675
Profitability Ratio
Net profit margin1 7.78% 8.90% 8.83% 10.08% 8.46%
Benchmarks
Net Profit Margin, Competitors2
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
Net profit margin = 100 × Net income attributable to TWC shareholders ÷ Revenue
= 100 × 1,844 ÷ 23,697 = 7.78%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Time Warner Cable Inc. net profit margin ratio improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.

Return on Equity (ROE)

Time Warner Cable Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Net income attributable to TWC shareholders 1,844 2,031 1,954 2,155 1,665
Total TWC shareholders’ equity 8,995 8,013 6,943 7,279 7,530
Profitability Ratio
ROE1 20.50% 25.35% 28.14% 29.61% 22.11%
Benchmarks
ROE, Competitors2
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
ROE = 100 × Net income attributable to TWC shareholders ÷ Total TWC shareholders’ equity
= 100 × 1,844 ÷ 8,995 = 20.50%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Time Warner Cable Inc. ROE deteriorated from 2013 to 2014 and from 2014 to 2015.

Return on Assets (ROA)

Time Warner Cable Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Selected Financial Data (US$ in millions)
Net income attributable to TWC shareholders 1,844 2,031 1,954 2,155 1,665
Total assets 49,277 48,501 48,273 49,809 48,276
Profitability Ratio
ROA1 3.74% 4.19% 4.05% 4.33% 3.45%
Benchmarks
ROA, Competitors2
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

1 2015 Calculation
ROA = 100 × Net income attributable to TWC shareholders ÷ Total assets
= 100 × 1,844 ÷ 49,277 = 3.74%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Time Warner Cable Inc. ROA improved from 2013 to 2014 but then deteriorated significantly from 2014 to 2015.