Stock Analysis on Net

Time Warner Inc. (NYSE:TWX)

This company has been moved to the archive! The financial data has not been updated since April 26, 2018.

Market Value Added (MVA)

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Market value added (MVA) is the difference between a firm fair value and its invested capital. MVA is a measure of the value a company has created in excess of the resources already committed to the enterprise.


MVA

Time Warner Inc., MVA calculation

US$ in millions

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Fair value of debt1 25,327 26,577 26,282 26,745 22,919
Operating lease liability 976 1,016 1,083 1,262 1,600
Market value of common equity 73,595 75,157 52,672 68,452 57,746
Redeemable noncontrolling interest 35 29 29
Noncontrolling interest 1 2
Less: Marketable securities 49 54 353 318 97
Market (fair) value of Time Warner 99,884 102,727 79,713 96,140 82,168
Less: Invested capital2 57,150 54,961 53,163 52,455 56,262
MVA 42,735 47,766 26,550 43,686 25,906

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Time Warner Inc. market (fair) value less invested capital. Time Warner Inc. MVA increased from 2015 to 2016 but then slightly decreased from 2016 to 2017.

MVA Spread Ratio

Time Warner Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in millions)
Market value added (MVA)1 42,735 47,766 26,550 43,686 25,906
Invested capital2 57,150 54,961 53,163 52,455 56,262
Performance Ratio
MVA spread ratio3 74.78% 86.91% 49.94% 83.28% 46.05%
Benchmarks
MVA Spread Ratio, Competitors4
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

1 MVA. See details »

2 Invested capital. See details »

3 2017 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 42,735 ÷ 57,150 = 74.78%

4 Click competitor name to see calculations.

Performance ratio Description The company
MVA spread ratio The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. Time Warner Inc. MVA spread ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.

MVA Margin

Time Warner Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (US$ in millions)
Market value added (MVA)1 42,735 47,766 26,550 43,686 25,906
 
Revenues 31,271 29,318 28,118 27,359 29,795
Add: Increase (decrease) in deferred revenue 129 82 74 1 (57)
Adjusted revenues 31,400 29,400 28,192 27,360 29,738
Performance Ratio
MVA margin2 136.10% 162.47% 94.17% 159.67% 87.11%
Benchmarks
MVA Margin, Competitors3
Alphabet Inc.
Comcast Corp.
Meta Platforms Inc.
Netflix Inc.
Walt Disney Co.

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

1 MVA. See details »

2 2017 Calculation
MVA margin = 100 × MVA ÷ Adjusted revenues
= 100 × 42,735 ÷ 31,400 = 136.10%

3 Click competitor name to see calculations.

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Time Warner Inc. MVA margin ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017.