Net Profit Margin
since 2006
Calculation
Time Warner Cable Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to TWC shareholders1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2015 | 7.78% | = | 100 | × | 1,844) | ÷ | 23,697) |
| Dec 31, 2014 | 8.90% | = | 100 | × | 2,031) | ÷ | 22,812) |
| Dec 31, 2013 | 8.83% | = | 100 | × | 1,954) | ÷ | 22,120) |
| Dec 31, 2012 | 10.08% | = | 100 | × | 2,155) | ÷ | 21,386) |
| Dec 31, 2011 | 8.46% | = | 100 | × | 1,665) | ÷ | 19,675) |
| Dec 31, 2010 | 6.93% | = | 100 | × | 1,308) | ÷ | 18,868) |
| Dec 31, 2009 | 5.99% | = | 100 | × | 1,070) | ÷ | 17,868) |
| Dec 31, 2008 | -42.70% | = | 100 | × | (7,344) | ÷ | 17,200) |
| Dec 31, 2007 | 7.04% | = | 100 | × | 1,123) | ÷ | 15,955) |
| Dec 31, 2006 | 16.79% | = | 100 | × | 1,976) | ÷ | 11,767) |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
1 US$ in millions
The financial performance from 2006 to 2015 is characterized by consistent revenue growth contrasted with significant volatility in net income and profit margins. While top-line expansion remained steady throughout the decade, bottom-line efficiency experienced a severe disruption in 2008 followed by a period of stabilization.
- Revenue Trajectory
- A consistent upward trend in revenue is observed, increasing from 11,767 million US dollars in 2006 to 23,697 million US dollars by 2015. This represents a steady expansion of the company's scale over the ten-year period.
- Profitability Volatility and the 2008 Anomaly
- Net profit margins exhibited extreme fluctuation during the early part of the period. After a high of 16.79% in 2006, the margin dropped to 7.04% in 2007 and collapsed to -42.70% in 2008, coinciding with a net loss of 7,344 million US dollars. This represents a critical deviation from the general performance trend.
- Recovery and Margin Stabilization
- Following the 2008 loss, a recovery phase began in 2009 with a return to a positive net profit margin of 5.99%. Between 2009 and 2015, margins stabilized, generally fluctuating within a range of 6% to 10%. A peak in efficiency was reached in 2012 with a net profit margin of 10.08%.
- Recent Performance Trends
- In the final three years of the analysis, the net profit margin remained relatively flat, moving from 8.83% in 2013 to 8.90% in 2014, before declining slightly to 7.78% in 2015. Despite continued revenue growth during this window, the contraction in net profit margin suggests a slight increase in costs or a decrease in operational efficiency relative to revenue.
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Comparison to Competitors
Time Warner Cable Inc., net profit margin, long-term trends, comparison to competitors
| Time Warner Cable Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2015 | 7.78% | 21.80% | 10.96% | 20.57% | 1.81% | 15.98% |
| Dec 31, 2014 | 8.90% | 21.88% | 12.18% | 23.58% | 4.85% | 15.37% |
| Dec 31, 2013 | 8.83% | 21.60% | 10.54% | 19.05% | 2.57% | 13.62% |
| Dec 31, 2012 | 10.08% | 21.40% | 9.91% | 1.04% | 0.48% | 13.44% |
| Dec 31, 2011 | 8.46% | 25.69% | 7.45% | — | 7.06% | 11.76% |
| Dec 31, 2010 | 6.93% | 29.01% | 9.58% | — | 7.44% | 10.41% |
| Dec 31, 2009 | 5.99% | 27.57% | 10.17% | — | 6.94% | 9.15% |
| Dec 31, 2008 | -42.70% | 19.39% | 7.44% | — | 6.08% | 11.70% |
| Dec 31, 2007 | 7.04% | 25.33% | 8.37% | — | 5.55% | 13.20% |
| Dec 31, 2006 | 16.79% | 29.02% | 10.15% | — | 4.92% | 9.84% |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
Comparison to Sector (Media & Entertainment)
Time Warner Cable Inc., net profit margin, long-term trends, comparison to sector (media & entertainment)
| Time Warner Cable Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2015 | 7.78% | 16.19% |
| Dec 31, 2014 | 8.90% | 16.64% |
| Dec 31, 2013 | 8.83% | 15.12% |
| Dec 31, 2012 | 10.08% | 13.86% |
| Dec 31, 2011 | 8.46% | 13.73% |
| Dec 31, 2010 | 6.93% | 15.13% |
| Dec 31, 2009 | 5.99% | 13.97% |
| Dec 31, 2008 | -42.70% | 11.85% |
| Dec 31, 2007 | 7.04% | 13.71% |
| Dec 31, 2006 | 16.79% | 12.75% |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).
Comparison to Industry (Communication Services)
Time Warner Cable Inc., net profit margin, long-term trends, comparison to industry (communication services)
| Time Warner Cable Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2015 | 7.78% | 12.78% |
| Dec 31, 2014 | 8.90% | 10.11% |
| Dec 31, 2013 | 8.83% | 12.57% |
| Dec 31, 2012 | 10.08% | 7.58% |
| Dec 31, 2011 | 8.46% | 6.73% |
| Dec 31, 2010 | 6.93% | 11.43% |
| Dec 31, 2009 | 5.99% | 9.07% |
| Dec 31, 2008 | -42.70% | 9.66% |
| Dec 31, 2007 | 7.04% | 9.78% |
| Dec 31, 2006 | 16.79% | 10.17% |
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), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).